3 Reasons & Solutions to have multiple retirement accounts

Many folks have employer-sponsored retirement accounts like a 401k or 403b which is a good thing.  In fact, 80% of large companies offer a qualified (pre-tax) plan some of whom will match your contributions.  That being said it’s wise to set up at least one other supplemental plan for yourself because;

1. You will pay later for today’s tax break: You will pay tax on 100% of your withdrawals which can bump up your tax rate and you won’t know what the tax brackets will look like at that time.
2. Limited planning flexibility: If you need money to make an important purchase and inching up to the next tax rate the purchase might put you over the top hurting your bottom line.
3. Limited access in the event of an emergency: If you are under age 59.5 and need to withdraw funds quickly you are facing a 10% penalty and taxation.

Because of these issues we recommend setting up at least 1 other after-tax plan such as a Roth IRA, life insurance cash value policy, and/or a non-qualified after-tax account like mutual funds or annuities.

Ask Robert about your 3 possible solutions for retirement accounts here or call him at (917)359-3985