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. Retirement

    Planning for Retirement the R.I.T.E. Way

    With proper financial and tax planning, you’ll be better positioned to achieve your retirement goal.
  3. Financial Advisor

    Top Retirement Prep Questions to Ask Clients

    Is your client really ready for retirement? Here are some essential questions to ask.
  4. 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.
  5. Investing

    Profiling: It's Not Just For The FBI

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

    How to Prepare for Your Ideal Retirement

    Retirement planning should include both financial and psychological preparation.
  7. Financial Advisor

    Tips for Tax-Efficient Retirement Plan Withdrawals

    Here's how advisors can help increase tax efficiency for clients who are withdrawing assets from retirement accounts.
  8. Retirement

    Is Your Retirement Plan on Track?

    Sooner or later that day will come. How to tell if you're ready and what to do if you need a course correction.
  9. Personal Finance

    7 Things Widows Wished They Knew About Finances

    Women who left finances up to their spouses wish they knew the following before they became widows.
  10. Retirement

    How to Prepare Yourself for Retirement

    Having a retirement plan and sticking to it will help you spend retirement the way you intended.
Frequently Asked Questions
  1. What does it mean when a stock trades on the Pink Sheets or the OTCBB?

    The stocks of well-known companies trade on major exchanges but companies must be listed prior to actually trading on an ...
  2. Who are Ford's (F) main suppliers?

    Explore the history and current operations of Ford Motor Co. and discover some of its primary global parts suppliers.
  3. Who are Toyota's (TM) main suppliers?

    Learn which companies make up Toyota's supply chain. The automotive giant provides awards to its largest and most efficient ...
  4. Who are BMW's main suppliers?

    Learn more about BMW automotive production, including a list of some of the main automotive parts suppliers that BMW relies ...
Trading Center