Saving for Retirement
Let us help you accelerate your retirement savings.
The government wants you to plan ahead and incentives it, are you taking full advantage?
Expect to replace
70 - 85%
of your income in retirement
How much do I need?
Types & Treatment of Tax Preferenced Accounts
Growth in the acccount
Pre-tax or Tax Deductible
Health Savings Accounts (HSAs)
Traditional Retirement Accounts
Roth Retirement Accounts
529 Plans (College or ABLE)
Types of Retirement Accounts
Pre-tax or tax-deductible contributions & tax-deferred growth.
After tax contribution
Tax-free growth & withdrawals
Roth vs. Traditional IRA
Contribute up to $6,000 ($7,000 for 50 and older)
in 2020 combined annual contributions to Roth and traditional IRAs.
Why choose a Roth IRA?
If you expect to be in a lower tax bracket now and a higher tax bracket in retirement.
If you need the flexibility to withdraw your contributions at any time without owing taxes or penalties.
At 59 ½ you can withdraw your contributions and gains completely tax free, if 5 years into it
Why you might avoid a Roth IRA?
Roth IRA contribution limits are reduced or eliminated at higher incomes.
Why choose a Traditional IRA?
If you expect to be in a higher tax bracket now and a lower tax bracket in retirement.
If you need the tax-break today.
Why you might avoid a Traditional IRA?
The amount you can deduct for contributions may be reduced or eliminated if you or your spouse is covered by a retirement plan at work.
There are Required Minimum Distributions
There is a 10% tax penalty for early withdrawals for non-qualified reasons.
These are opened only by employers and their specifics vary
Try to contribute enough to get the max. match, at least, if offered.
You cannot contribute if you leave employer
“Rollover” with caution from your employer account into an IRA when you leave your employer.
Loans can have high penalties pre-59 ½ .
Penalties exceptions exist for education, home purchases, medical expenses, etc.
If your employer doesn't offer a retirement program
You might be eligible for Oregon Saves
"Oregon employers are required to facilitate OregonSaves if they don’t offer an employer-sponsored retirement plan."
Saver's Tax Credit
The Saver’s Credit is a great way for low- and moderate-income people to save for retirement while also earning valuable tax credits.
The saver's tax credit is a non-refundable tax credit available to eligible taxpayers who make contributions to....
Employer-Sponsored Retirement Accounts
Individual Retirement Accounts
Claiming a saver's credit when contributing to a retirement plan can reduce an individual's income tax burden in two ways.
the saver's credit reduces the actual taxes owed, dollar for dollar.
you receive either a reduced tax bill today or tax free withdrawals in retirement via a qualified account.
2020 Saver's Credit Income Limits
Head of Household
50% of contribution
AGI of $19,500 or less
AGI of $29,250 or less
AGI of $39,000 or less
20% of contribution
$19,501 - $21,250
$29,251 - $31,875
$39,001 - $42,500
10% of contribution
$21,251 - $32,500
$31,876 - $48,750
$42,501 - $65,000
0% of contribution
more than $32,500
more than $48,750
more than $65,000
The credit is worth a maximum of $1,000 ($2,000 if you file jointly).
Besides falling into one of these income tiers, you'll also need to meet the following requirements to qualify for the credit:
You are age 18 or older
You're not a full-time student
No one claims you as a dependent on their return.
Rollover contributions do not qualify
The Power of Tax Credits Vs. Deductions
Deductions lowers your tax bill by reducing your taxable income, a credit directly reduces your tax bill. Saver’s credit is not a refundable credit.
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