2014 IRA & Retirement Plan Limits

Many IRA and retirement plan limits are indexed for inflation each year. On October 31, 2013, the IRS issued the inflation-adjusted numbers for 2014.  The elective deferral limit for 401(k), 403(b), and 457(b) plans remains at $17,500 in 2014 (the catch-up limit remains unchanged at $5,500). The maximum IRA contribution remains at $5,500 in 2014 (and the catch-up limit remains unchanged at $1,000). However, the phaseout ranges for determining the deductibility of traditional IRA contributions, and for determining whether an individual can contribute to a Roth IRA, have increased for 2014. In addition, the maximum amount that can be contributed to a defined contribution plan has increased from $51,000 to $52,000 for 2014

What type of money do you have?

There are four types of money. What type of money are you getting, earning, and inheriting? As always, we recommend that you contact your advisor for advisement on your particular situation.

Free Money-Best way to explain Free Money is by example. Although this example is not as popular as it once was, the best example is 401k matched-contributions. If your company still offers these contributions...maximize the match and contact your advisor.

Tax Free Money-Examples include Roth IRAs and Permanent Life Insurance.  A Roth IRA is ideal for many clients. Caps are subject to age and how much a client makes a year will determine if they can start an Roth IRA. A strategy used commonly is funding a personal Universal Life insurance policy and may minimize the tax responsibility. 

Tax Deferred Money–401k's, IRAs, Qualified Retirement Plans, & Deferred Compensation Plans. While there are restrictions and penalties on early withdrawals before 59 1/2 years of age.Contributions are pre-taxed and growth is tax-deferred, withdrawals are at a client's tax rate at that time of withdrawal. 

Taxable Money–While paying with after-taxed dollars for CDs, Mutual Funds, Stocks, you are also being taxed on the gain or income.  

There are strategies to help our clients protect themselves financially, build generational wealth, and leave a legacy. It is never too late to prepare for the future.

Direct-Sold vs. Advisor-Sold: How to Decide Which 529 Type Is Best for You

Direct-Sold vs. Advisor-Sold: How to Decide Which 529 Type Is Best for You

Retirement Spending Just as Important as Retirement Income according to Morningstar

www.prospectsfinancial.com

Come and check out our developing library of things you can actually utilize!

http://news.morningstar.com/articlenet/article.aspx?id=598468

Money Monday: 10 Life Changes that Could Impact Your Insurance

http://www.bet.com/news/national/2013/01/07/money-monday-ten-life-changes-that-could-impact-your-insurance.html

How Are Annuity Payments Taxed?

Surprisingly enough, many people who purchase annuities do so through agents who either don't know this or don't tell the client. Sad, because they are the so-called professional commissioned to help the client.
According to Morningstar

http://news.morningstar.com/articlenet/article.aspx?id=578065