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401(k) Planning Near Melbourne, FL

Rossi & Associates

At Rossi & Associates, near Melbourne, FL, we reach new heights in client care. You will never be left wondering what is happening with your financial plan. We reach out to our clients regularly to ensure that their questions are answered, and we return calls promptly. We take pride in helping our clients achieve financial security. You will have peace of mind knowing that at Rossi & Associates, we put your needs ahead of our own. Our fiduciary promise is to act in good faith and loyalty to our clients, always putting our clients first. Looking for an advisor for your retirement account? Reach out to us to see how we can help you with your 401(k) planning needs!

401(k) Basics

The 401(k) has grown to become the most popular type of employer-sponsored retirement plan in the United States. Few other plans match the flexibility of the 401(k). A 401(k) is a qualified retirement plan, meaning it is eligible for special tax benefits under IRS guidelines. You can invest a set portion of your salary into your 401(k) up to a specified annual contribution limit. Some employers match your contribution up to a specified percentage and some do not.

What Happens to Your 401(k) at Retirement?

In most cases, you can usually maintain your 401(k) with your former employer or roll it over into an individual retirement account or IRA. IRAs maintain the tax benefits of your 401(k) plan and give you even more investment options. There are many cases where it makes sense to keep your money in the 401(k) plan. An advisor can help you make these crucial 401(k) planning decisions.

How do You Withdraw from Your 401(k)?

Some options include taking a lump-sum distribution, rolling the funds over into an individual retirement account or IRA, taking periodic or time-based distributions. 401(k) distributions are first governed by tax laws and then by the plan’s own rules. It is important to work with an advisor to understand your areas tax laws as well as your individual plan’s rules.

Is a 401(k) Taxed When You Retire?

This depends on whether or not your 401(k) is a traditional or Roth. When you take distributions or withdraw funds from your 401(k), you may enjoy the income from the retirement account and/or face some of its tax consequences. For most 401(k) plans, distributions are taxed as regular income. Tax may also be determined upon how you withdraw funds. Generally, traditional 401(k) withdrawals are taxed at the individual’s current income tax rate. Roth 401(k) withdrawals are generally not taxable so long as the account is at least five years old and the account owner is fifty-nine and a half years old or older. Usually, employer matched contributions are taxable. We can help you make informed decisions about maintaining your 401(k) now in order to minimize taxes at retirement.

Florida Retirement System (FRS)

Eligible employees are provided with retirement benefits through numerous plans, such as the Florida Retirement System or FRS. If you or someone you know works for the state, county, district, or other eligible employment, our in-depth knowledge of the FRS and other retirement systems available for officials in certain positions in the state of Florida will be beneficial. Eligible employees for the FRS or other special programs may include teachers and school staff, police officers, firefighters, general employees and special risk employees, etc.

Key Takeaways

It is important to take control of your retirement income as soon as possible. The more time you have to prepare, the better prepared you will be. However, it is never too late to begin planning for retirement. We offer comprehensive solutions to meet your individual retirement needs and ensure that you will not out-live your retirement funds. At Rossi & Associates, near Melbourne, FL, we care about you and your quality of life. Looking for an advisor for your retirement account? Reach out to us to see how we can help you manage your 401(k) planning needs!

Before deciding whether to retain assets in a 401(k) or roll over to an IRA, an investor should consider various factors including, but not limited to, investment options, fees and expenses, services, withdrawal penalties, protection from creditors and legal judgments, required minimum distributions and possession of employer stock. Please view the Investor Alerts section of the FINRA website for additional information.  Converting from a traditional IRA to a Roth IRA is a taxable event a Roth IRA offers tax free withdrawals on taxable contributions. To qualify for the tax-free and penalty-free withdrawal or earnings, a Roth IRA must be in place for at least five tax years, and the distribution must take place after age 59½ or due to death, disability, or a first time home purchase (up to a $10,000 lifetime maximum). Depending on state law, Roth IRA distributions may be subject to state taxes.  For a comprehensive review of your personal situation, always consult with a tax or legal advisor. First Allied Securities, Inc. nor any of its representatives may give legal or tax advice.   

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