Tax-Advantaged Retirement Savings at Your Company


Introduction

The three-legged retirement stool concept consists of Social Security, pension and profit-sharing plans, and personal savings. Your employer is responsible for the pension leg. You are responsible for understanding the profit-sharing plans and taking advantage of the tools provided to help you with the personal savings leg. If you are working for a large employer, you most likely have more than one type of retirement plan available to you. These plans, in general, are known as "qualified" plans because they meet Internal Revenue Service guidelines that offer certain tax privileges. As long as you and the company continue to follow IRS guidelines, both parties will enjoy current tax benefits.

While some plans may be fully paid by your company, other plans may require you to make a contribution. Unfortunately, many employees fail to take the time to know how their company plans work. Do you know if you are eligible to receive a monthly benefit from your employer when you retire? Do you know what the formula is based on? Do you know how much you can save in your company's retirement plan? Employees should become familiar with all the features of their company plans.


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*Non-deposit investment products and services are offered through Sorrento Pacific Financial, LLC ("SPF"), a registered broker-dealer (Member FINRA/SIPC) and SEC Registered Investment Advisor. Products offered through SPF: are not FDIC or otherwise federally insured, are not a deposit or guarantee of the bank, and may involve investment risk including possible loss of principal. Investment Representatives are registered through SPF. The bank has contracted with SPF to make non-deposit investment products and services available to bank clients.