Daily Dupaco

Tuesday, January 07, 2014

Tax season retirement planning

When was the last time you evaluated your retirement savings goals? Do you know how much you need to save for a comfortable retirement?

Financial experts speculate that Social Security will provide only a small percentage of the total amount retirees may need to maintain their pre-retirement lifestyle, which means your personal retirement savings is a crucial component in helping you pursue your retirement needs. A powerful and sometimes overlooked vehicle for retirement savings is an IRA.

An IRA is an individual retirement account to which you can contribute up to $5,500 annually ($6,500 if you are over 50 years old) for 2013. The great advantage of an IRA is that your investments’ earnings are tax-deferred until withdrawn. Also, compounding of interest makes your money work harder because you earn interest not only on your contributions to your account, but also on the interest those contributions generate.

Dupaco Financial Services offers access to traditional and Roth IRAs. The significant difference between the two is that contributions are tax-deductible for the traditional IRA,* while a Roth IRA may not offer tax deductible contributions, but provides for tax-free distributions.**

There are obvious benefits to both, and we can help you find the right IRA to help you address your retirement investment needs by analyzing factors such as your current and future tax bracket and the number of years it will take you to retire.

We can also assist you if you are expecting a lump-sum distribution through your employer’s retirement savings plan. If you have recently changed jobs or are about to retire, an IRA rollover provides the advantage of preserving the tax-deferred status of your assets, while many times offering you a wider selection of investments.

As tax season quickly approaches, please take advantage of our services. Discuss the opportunities afforded by IRAs and other retirement savings plans and let us help you work toward your long-term financial goals. Please call our department to schedule a no-obligation consultation.

*For deductible contributions, certain income limits apply.
**Federal taxes only. Individual states may vary. Please consult your tax advisor.

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