Retirement accounts can be individual or employer-sponsored. In either case, they are designed to allow investments in your client's pension to grow until retirement.
  • Usually, the money invested in a retirement account is deductible from income for tax purposes: if your client earns $100,000 per year and puts $3,000 in a pension plan, then she is taxed as if her income were $97,000.

  • Furthermore, all capital gains that accrue and all dividends that are reinvested are tax-deferred. That does not mean they are tax-free, but it does mean she does not have to pay taxes until she withdraws money from the account. However, she is likely to be in a lower tax bracket as a retiree than she is now that she is still a wage earner.
The Retirement Plans feature is your gateway to tutorials that are each devoted to one the most common retirement plans, explaining how to establish, fund, and then take distributions from it.

Individual Retirement Accounts (IRAs)

Related Articles
  1. Financial Advisor

    Top Tips for Maximizing Retirement Withdrawals

    There can be significant tax advantages to taking withdrawals from one retirement account over another. Here's how to help clients plan.
  2. Financial Advisor

    Is Your Client Ready for an Early Retirement?

    Make sure these factors are on your checklist to ensure your client can retire early.
  3. Financial Advisor

    Top Tips for Retirement Account Withdrawals

    Top things you need to know when it comes to managing the complex task of retirement account withdrawals.
  4. Investing

    Profiling: It's Not Just For The FBI

    Learn how to quantify each client's specific dreams and create a realistic financial plan.
  5. Retirement

    4 Steps to a Happy Retirement

    These basic retirement planning tips are essential for both savers and their financial advisors.
  6. Financial Advisor

    How to Pay Minimal Taxes on Retirement Assets

    Withdrawing and spending during retirement can be complicated. Here are some tips on how to manage the process in the most tax-efficient manner.
  7. Financial Advisor

    Helping Clients Avoid Retirement Landmines

    Your clients may hold well thought-out retirement plans, but things happen that can disrupt—or even derail—them. Know when to step in with extra help.
  8. Financial Advisor

    Retirement Looming? Here are 6 Essential Tips

    Planning on retiring in the next decade or so? Here is a checklist for both advisors and those planning on their own.
  9. Financial Advisor

    5 Tips for Those 5 Years Away from Retirement

    Whether helping a new client or working with long-time clients, here are five financial planning tips for those within five years of retirement.
  10. Retirement

    5 Steps to a Retirement Plan

    These considerations will help you make a realistic and thorough retirement plan.
Frequently Asked Questions
  1. Depreciation Can Shield Taxes, Bolster Cash Flow

    Depreciation can be used as a tax-deductible expense to reduce tax costs, bolstering cash flow
  2. What schools did Warren Buffett attend on his way to getting his science and economics degrees?

    Learn how Warren Buffett became so successful through his attendance at multiple prestigious schools and his real-world experiences.
  3. How many attempts at each CFA exam is a candidate permitted?

    The CFA Institute allows an individual an unlimited amount of attempts at each examination.Although you can attempt the examination ...
  4. What's the average salary of a market research analyst?

    Learn about average stock market analyst salaries in the U.S. and different factors that affect salaries and overall levels ...
Trading Center