We do not provide tax advice. Consult your tax advisor.
You should also consider your short-term and long-range tax burden. The Wealth Management team is well-versed in tax-advantaged options and can put you on a path that maximizes your after-tax resources.
- With a 401(k) plan sponsored by an employer, employees can elect to invest a portion of their wages in a tax-deferred account.
- Additionally, employers may contribute to a 401(k) plan through employer matching contributions or a profit sharing program.
- Our Financial Advisors can provide guidance and direction on your specific plan to assist you in developing healthy financial habits for retirement.
Qualified Retirement Plans
- A qualified retirement plan is an employer-based plan that meets IRS requirements and offers certain tax benefits.
- Examples of qualified retirement plans include 401(k), 403(b), and profit-sharing plans.
- Stocks, mutual funds, real estate, and money market funds are the types of investments sometimes held in qualified retirement plans.
- Taking distributions from a qualified plan before retirement age can often result in tax penalties.
- A tax-deferred annuity is an investment product issued by an insurance company.
- Under current tax law, you do not pay taxes on the earnings credited until the earnings are withdrawn.
- An annuity can accumulate interest in three different ways: on the principal, on your earnings and on the earnings you would have otherwise paid in taxes.
- A tax-deferred annuity is available in both fixed- and variable-rate form.
- Tax-deferred compounding allows your money to potentially accumulate faster than similar taxable alternatives.
Simplified Employee Pension-Individual Retirement Account (SEP-IRA)
- With a SEP-IRA, the employer, not the employee, makes the contributions.
- Generally, the SEP-IRA is designed for self-employed persons operating as sole proprietorships, partnerships or corporations.
*Investment and insurance products are offered through OSAIC INSTITUTIONS, INC., Member FINRA/SIPC. Osaic Institutions and First Bank are not affiliated. Osaic Institutions does insurance business in California as Osaic Institutions Insurance Agency, CA Agency License #OH30186. Products and investment advisory services made available through Osaic Institutions are not insured by the FDIC or any other agency of the United States and are not deposits or obligations of nor guaranteed or insured by any bank or bank affiliate. These products are subject to investment risk, including the possible loss of value. First Bank Wealth Management is a trade name of First Bank, and certain products and services are provided through First Bank, and its affiliates and subsidiaries. Neither Osaic Institutions or First Bank, nor any of their affiliates or financial advisors, provide legal, tax, or accounting advice. You should consult your legal and/or tax advisors before making any financial decisions. Use FINRA’s BrokerCheck to learn about the professional background, certifications, licenses, and any regulatory violations or complaints for any financial advisor.