Co If you inherit a tax-deferred retirement plan
, consider rolling it into an inherited IRA.C?
Invest in a tax-deferred retirement plan
. If you have an Individual Retirement Account, make a one-time, sizable contribution.
In fact, if you look at the numbers--and consider how little you're going to get from Social Security (for most of us, the equivalent of roughly $13,000 a year)--you'll realize that if you're not participating in some other kind of tax-deferred retirement plan
, you can't afford not to have an IRA.
But should you put dividend-paying stocks and stock funds inside a tax-deferred retirement plan
, such as an IRA or a 401(k)?
This tax bite doesn't apply to investors buying fund shares for a tax-deferred retirement plan
. Also, never delay your investment decisions solely because of the tax considerations.
Although a tax-deferred retirement plan
like a 401-K, 403 (b), or Individual Retirement Accounts (IRA) can be a good source of retirement income for you, it may prove expensive to pass it to your heirs through your estate plan.
Persons who did not say "yes" to both questions still could be counted as having retirement coverage if they responded affirmatively to the following question, asked later in the supplement about participation in a tax-deferred retirement plan
: Some retirement plans allow workers to make tax-deferred contributions to the plan.
Money for the stock could go from the company treasury into a tax-deferred retirement plan
for the owner.
As a general rule, you should try to hold assets with the least tax efficiency in your tax-deferred retirement plan
* Forty-one percent did not understand the tax implications of making a withdrawal from a Registered Retirement Income Fund (RRIF), a Canadian tax-deferred retirement plan
Generally, the maximum catch-up amount is two times the basic annual limit, but only to the extent a participant has not previously deferred the maximum amount under an eligible plan or similar tax-deferred retirement plan
. Special age-50 catch-up rules are also provided.