Freeman's Blog


August 29th, 2013 by

Questions and Answers about 401K Rollovers

Have you ever heard of a rollover IRA?

“Rolling over” is just another term for consolidating. This means compiling all of your retirement accounts into one. For instance, a person might change employers and “lose” their old 401(k)—forgetting the password or which company held the account. People aren’t going out of their way to help you find your money, so it’s in your best interest to keep all of your retirement nest egg dollars in one place.

A 2009 study found that nearly half of all United States employees cash out their 401(k)s upon leaving a job. By taking those distributions—in other words, withdrawing money from their accounts instead of rolling it into a new account—they’re taxed on that withdrawal as income and they have to pay federal and sometimes state penalties for the early withdrawal. And guess what else people don’t do? Plan for those taxes and penalties!

To consolidate, there are two options:

  • Roll accounts into an existing 401(k) .
  • Roll accounts into a rollover IRA account.

Get expert help for your retirement planning. I offer free consultations to keep your money safe during retirement. Call me toll free: 833-313-7233.

August 28th, 2013 by

Questions and Answers for Retirement PlanningSome companies give incentives to their employees to stash away money for retirement by offering to “match” the contributions you make to your 401(k)—which means an added boost to the amount you put away each year. For instance, a company might offer a 3% match, where it matches 50% of the first 6% that you put away for retirement in that year. Another company might also offer a 3% match, but match the first 3% of your contributions dollar-for-dollar, so it’s important to know how your company calculates its match.

People who have employers that offer to match and who still don’t contribute to their 401(k)s are giving up free money. Look at it this way: Would you turn down a raise? No? Then don’t turn down the match. Even if your company only matches a small percentage, you’re doubling any retirement contributions you make up to that point. That’s smart planning for your nest egg!

Let me help you navigate your retirement planning.

Take advantage of my free consultation on keeping your money safe:

August 27th, 2013 by

Questions and Answers

The 2013 retirement account contribution limits and income restrictions are as follows:

  • The contribution limit on employer-sponsored plans (401(k), 403(b) and most 457 plans) is $17,500.
  • The contribution limit on traditional and Roth IRAs is $5,500.
  • The “catch-up” contribution for people ages 50 and older is $1,000 for IRAs and $5,500 for 401(k)s and employer-sponsored plans.
  • You can contribute to a Roth IRA if your adjusted gross income is less than $112,000 filing alone, and $178,000 if you’re married filing jointly.
  • With the traditional IRA, your ability to deduct your contribution on this year’s taxes will start to be phased out when your income is above $59,000 if you are single and $95,000 if you are married filing jointly—if you’re also covered under an employer plan at work. If your company doesn’t offer a plan, you may be able to deduct the entire contribution, regardless of your income.

Because retirement accounts are meant to be saved long-term and are taxed accordingly, early withdrawals are always subject to fees. For this reason, taking money out of your retirement account is a cardinal personal finance sin, with few exceptions.

Many people don’t understand the rules before they start.

Basic things like which retirement account you can open and how much you can contribute carry costly penalties for misunderstanding. So as you get started (or as you re-balance), make sure you know the rules. I can help you navigate your retirement planning strategy so as to keep your money safe!

Free consultation: 833-313-7233

August 16th, 2013 by

retirement staying in home

What Are Your Plans for retirement?

Retirement planning has to be a holistic view of your portfolio and it must include making decisions that will get you where you want to be in years to come. And, it isn’t easy to navigate this kind of planning by yourself.

Let me help you navigate your retirement planning so that you:
• Keep your money safe
• Never outlive your retirement resources

Call me for a free consultation: 1 833-313-7233.