IRAs | 401ks

Saving for Retirement: Must-Know Facts about IRAs and 401(k)s

At Beacon Financial Group, we like to help our clients gain a thorough understanding of their vision for retirement and strategize a future in which they are in control of their money. Start planning for your retirement today by opening an IRA or a 401k account.

What Is an Individual Retirement Account?

IRAs have their own set of tax rules during the owner’s life (for example, early withdrawals may be penalized), and they are only distributed after they are combined with the owner’s estate and other accounts after the owner’s death. Your IRA is free to grow over the years without being taxed if it is not withdrawn.

What Is a 401(k)?

A 401(k) is typically offered by employers as a way for employees to take advantage of pre-tax payroll withholding and employer matching of the employee’s contributions. When you withdraw money before you retire, this amount will be taxed.

In a traditional 401(k) arrangement, the employer is not required to contribute a set amount. If you change jobs, or if you become self-employed, your 401(k) may be able to be “rolled over” into an IRA.

We Can Help You Plan for Retirement

If you have questions about your retirement, savings, or investments — for example, learning the nuances of the Roth IRA — we can help you understand the steps you need to take to secure your financial legacy. Contact Beacon Financial Group today to begin making a plan for your future.