Are you on track with being able to retire when you want to? It’s so easy to procrastinate about saving and investing money for your retirement – especially if you’re still years away. While starting early makes it so much easier to meet your retirement goals, it never hurts to start based on where you are today. Saving steadily and starting now can make it possible for you to retire with greater comfort. Keep … Read More
Question: If I take money out of my IRA before I’m 59½, what happens? Answer: What you’re referring to is a premature IRA distribution. If you are under age 59½ and withdraw funds from your IRA, you’ll probably have to pay a 10 percent penalty tax on top of whatever income taxes you owe on the distribution. This can be a major drawback for IRA owners who need money and have few other assets to … Read More
Question: Is it true that the federal government insures retirement plans? Answer: Not exactly. You’re probably referring to something you heard called the Pension Benefit Guaranty Corporation (PBGC) which is a federal agency created by ERISA. PBGC insures certain pension benefits, specifically defined benefit plans, but not other types of retirement plans. To explain it a bit further: A defined benefit plan is a qualified employer pension plan that promises to pay a specific … Read More