Attorney for IRA & Retirement Planning in League City
Get the Most Value from Your Retirement Assets
Many individuals reach retirement without properly securing their assets and ensuring they’re protected when the time comes. Navigating IRS rules revolving around your IRA, 401(k), or other retirement plans can be legally complex. However, not taking these important steps can drastically affect your savings for retirement in the long term.
These matters are best handled with an estate planning attorney well-versed in tax reduction methods relevant to your personal financial circumstances. Our League City retirement planning lawyer at The McNair Law Group, PLLC can plot a course through these waters for you. We can help set you up for comfort during retirement.
How Does an IRA Work?
An IRA, or Individual Retirement Account, is an investment account with numerous advantages. With a traditional IRA or Roth IRA you don’t pay any taxes on earnings for the retirement account. You instead have the opportunity to reinvest the earnings to continue developing the account assets.
There are four types of IRAs to choose from, based on your situation:
- Traditional IRA: Funded with “pre-tax” dollars, you won’t pay taxes on contributions or interest until you start taking withdrawals. In some cases, you can deduct your contributions to the IRA on your tax return.
- Roth IRA: Unlike a traditional IRA, the Roth IRA is funded with “after-tax” dollars. The earnings and withdrawals are generally tax-free, sometimes a tremendous advantage in retirement. There is a maximum income limit to be eligible to contribute to a Roth IRA.
- Savings Incentive Match Plan for Employees (SIMPLE): An employer sponsored plan for small businesses with fewer than 100 employees. Also available for self-employed individuals. These plans follow the same tax rules as a traditional IRA.
- Simplified Employee Pension (SEP): An employer sponsored retirement plan with higher contribution limits than the SIMPLE plan. Also follow the same tax rules as a traditional IRA.
In whatever IRA you chose, the tax benefits available allow your money to grow faster than in a taxable account. Upon reaching retirement age, you can manage your tax obligation based on retirement income and the withdrawal totals. You can take money from the account before reaching retirement age, but will be subjected to tax penalties.
Start Developing your Retirement Portfolio
Attorney McNair knows the ins and outs of investing for retirement to assist our clients with these tough financial decisions. Making the right choices can afford you tremendous tax benefits, saving you money both now and in the future. Through proper planning, you can achieve peace of mind knowing your future is secured. Therefor, it is ideal to start surveying your assets and defining your goals now.
Call The McNair Law Group, PLLC today at (281) 784-3340 or contact our League City lawyer online for more information.