Start Planning Your Retirement Today
Although we all imagine a life of leisure during our retirement years, there are a number of "what ifs" that could dramatically change that blissful picture:
- What if you're still paying for a mortgage?
- What if Social Security is dramatically reduced or eliminated?
- What if you suffer a long-term illness?
Your individual retirement plan should match your goals with your risk tolerance and a balanced blend of investment vehicles.
- Traditional Individual Retirement Account (IRA) – Contribute an amount equal to your taxable compensation up to a maximum of $6,500 ($7,000 if 50 or older). Contributions may be tax-deductible depending on income, tax-filing status and coverage by an employer-sponsored retirement plan. Qualified distributions are taxable as income.
- Roth IRA – Similar to traditional IRAs except that contributions are not tax-deductible, but qualified distributions are tax-free.
- Retirement Investment Accounts – Other savings or investment accounts earmarked for retirement.
As your own employer, you have the sole responsibility of funding your retirement. You have several options as a self-employed individual, including two IRAs that enable you to provide retirement funds for your employees as well.
- Solo 401(k) – Annual tax-deferred contributions up to a set maximum, plus an additional 25% of self-employment income for business owners, up to a combined maximum. Additional catch-up contribution for those 50 or older.
- SEP IRA – Your annual contribution is 25% of your compensation, up to a maximum of $56,000. Contributions are 100% tax-deductible and earnings grow tax-deferred. If you use a percentage of your compensation to calculate your retirement contribution, you must make contributions for your employees at the same percentage.
- SIMPLE IRA – This tax-deferred retirement plan is available for small business owners with fewer than 100 employees. Contribute up to $13,000 annually with a catch-up limit of $16,000 for those 50 or older. Employers must match up to 3% of an employee’s contributions on a dollar-for-dollar basis.
Employer Retirement Plans
A good employer-sponsored retirement plan can give your company a competitive edge in recruiting and retaining top-performing employees. For businesses, nonprofits and government agencies, our Arvest Wealth Management retirement plan consulting team offers specialized solutions and support that help your business manage investments, oversee custodial accounts and provide employee education.FIND A CLIENT ADVISOR