Retirement planning begins with the understanding that an Individual Retirement Account (IRA) is a smart way to save for your future. IRAs help you save efficiently, offering potential tax advantages depending on the type you select.

Hennion & Walsh will help you choose the right type of IRA that works for you. We’ll be with you as your needs change to help evaluate your new circumstances. That’s our difference.

Retirement Planning

Traditional IRA

This account defers taxes and is designed for saving for retirement.

Who should consider a Traditional IRA account for Retirement Planning?

Investors who are under the age of 70 ½ who show earned income and are able to save money for retirement.

Traditional IRA Features

• Tax Advantages – because contributions grow tax deferred.
• Flexibility – You can strategically invest your contributions in a variety of instruments (stocks, bonds, CDs, mutual funds, ETFs) to meet your individual needs.

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Roth IRA

A Roth IRA allows the investor after-tax contributions with the possibility for tax-free income upon retirement.

Who should consider a Roth IRA account for Retirement Planning?

Investors, including individuals under the age of 18 as well as those over the age of 70 ½ with earned income and modified gross income under the proper terms.

Roth IRA Features

• Tax Advantages – While contributions are not tax-deductible, your earnings grow tax-deferred and if held for more than five years, tax-free. If certain guidelines are followed, individuals may remove distribution penalties and be tax-free.
• Flexibility – Your Roth IRA contributions can be strategically invested in a variety of instruments (stocks, bonds, CDs, mutual funds, ETFs) to meet your individual needs.

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IRA Rollover

When you leave a job, you may need to consider what to do with your employer-sponsored retirement plan. There are several options to consider:

• Rollover your plan to a Traditional or Roth IRA
• Leave your account in your former plan, if available
• Rollover to a new plan, if available
• Take a cash distribution

In your retirement planning journey, the decision should be based on your circumstances, considering various factors. If a 401(k) rollover aligns with your financial goals, you can benefit from continued tax deferral, penalty avoidance, and full investment opportunities through an IRA with Hennion & Walsh.

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Simplified Employee Pension Individual Retirement Account – SEP IRA

A SEP IRA is a type of Individual Retirement Account designed for the self-employed. Since SEP accounts function like IRAs, you can invest funds in the same way as any other IRA.

Who Should Consider a SEP IRA?

Self-employed individuals and spouses, are able to contribute up to 25% of their earnings, and seeking tax benefits.

SEP IRAs Features

• Tax Advantages – Tax-deductible contributions up to 25% of compensation, and may be as much as $44,000 for the 2007 plan year, $45,000 in 2008, and subject to annual cost-of-living adjustments for later years.
• Flexibility – You may invest your SEP IRA in a variety of investment vehicles.
• Simplicity – With a SEP IRA there is no requirement to file an annual report with the IRS.

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Coverdell Educational Savings Account

A Coverdell Education Savings Account (ESA) is a tax-sheltered account, opened on behalf of a child that is under age 18. You may contribute up to $2,000 each year to your account, with a contribution deadline of April 15 of the following calendar year.

Who should consider a Coverdell Educational Savings Account?

Investors, including individuals under the age of 18 as well as those over the age of 70 ½ with compensation and modified gross income under the proper terms.

Coverdell Educational Savings Account Features

• Tax Advantages – Your contributions are not tax deductible, but the withdrawals are tax-free if used for qualified expenses.
• Flexibility – Your Coverdell Educational Savings Account contributions can be strategically invested in a variety of instruments (stocks, bonds, CDs, mutual funds, ETFs) to meet your individual needs.

Start your retirement planning with Hennion & Walsh today. Start today.

All investments involve risk, including loss of principal. Past performance does not guarantee future returns.