Traditional IRAs
Do I need an IRA if I already have a company retirement plan?
Over 40% of retired Americans say they didn't save enough for retirement. An IRA is an excellent way to have
savings in addition to Social Security and a company retirement plan. And with an IRA, clients have a much
higher degree of control over their investment choices.
What exactly is an IRA?
An IRA is simply a set of rules governing annual contributions, transfer and rollover activities, distributions,
and tax consequences associated with an investment. Think of these rules as an umbrella; underneath the umbrella
is the actual investment itself. There are three basic types of IRAs-Traditional, Roth and Rollover.
Who is eligible for an IRA?
Most taxpayers who have earned income are eligible for an IRA. Non-working spouses can have their own IRAs even
if they don't earn income. The same annual contribution limits apply.
Traditional IRAs
Traditional IRAs have been popular for years, and for good reason. Clients can contribute up to a maximum
contribution per taxpayer per year. In many cases, the contributions are tax deductible and the earnings are tax
deferred until retirement. And there is quite a broad choice of investment vehicles. Withdrawals can be made
before age 59½ for the first-time purchase of a home or for higher education for children. The normal tax rate
applies, but there is no penalty.
Rollover Accounts
Changing jobs? About to retire? Consolidating your retirement funds from a previous 401(k) to a Rollover IRA
offers more control and options to meet your retirement goals.
Roth IRAs
These relatively new IRAs became available to taxpayers in 1998.
This IRA offers the kind of tax-free buildup and withdrawal that
many investors will find highly appealing. And up to certain income
limits, virtually any income-earning U.S. citizen can contribute
to a Roth IRA. Clients can contribute up to $5,000 per tax payer
per year of earned income after tax.* Earnings accumulate tax free,
and can be withdrawn without tax or penalty if clients are at least
59½ and have had the account for five years or more. Tax-free
withdrawals can be made before age 59½ for the first-time
purchase of a home or for higher education for children, provided
the account has been open at least five years.
* For clients age 50 and up, an additional
catch-up contribution is allowable in the amount of $1,000 per year.
SEP & SIMPLE IRAs
These plans are methods which self employers and small business owners may save for retirement. There are relatively
new self employer plans now available, such as the self employed 401(k). Each of these plans are suitable for
different businesses based upon size, type of ownership and other details may determine which plan best suites your
business. Talk to our Investment Officers to see which plan would benefit your business.
Our Investment Officers would be happy to help you today.
Contact us at: (800) 400-7067
Non-deposit investment products and services
are offered through Sorrento Pacific Financial, LLC ("SPF"),
a registered broker-dealer (Member FINR/SIPC) and SEC Registered
Investment Advisor. Investment Representatives are registered through
SPF. Fremont Bank has contracted with SPF to make non-deposit investment
products and services available to bank clients. Products offered
through SPF are:
| Not FDIC Insured |
 |
Not Bank Guaranteed |
|
May Lose Value |
|
| Not Guaranteed
by any Government Agency |
|
Not a Bank Deposit |
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