401k

401-K is an employer sponsored plan.  Most employers offer 401-Ks as part of, or all of, their retirement benefits for employees. Some companies even offer dollar for dollar matching for voluntary deferments from employees.  These plans are unique in that you are able to defer some of you salary and it is reported as pre-taxed on your W-2.  401-Ks benefit many people because they have much higher limits than a traditional IRAs.  When you retire or leave a job you can move your 401-K, tax free, to a 401-K rollover that we manage and you control.  401-K investments are generally invested with the idea that you will at some point in your later years, or during retirement, take a monthly distribution to supplement your social security benefits. 

IRA

IRA stands for Individual Retirement Account. They are a personal retirement plan and they require that you have W-2 or self-employment earnings in order to make contributions. IRAs are easily portable. You can start an IRA with a bank or investment company and then you are able to move that IRA, tax free, to a different investment company which creates an IRA transfer. IRAs are intended to be retirement funds. They are generally invested with the idea that you will one day begin to take withdrawals to supplement social security benefits in retirement. Current IRA contributions offer a great tax benefit. They are considered an adjustment to income regardless of whether or not you itemize deductions as long as you do not exceed the income requirements.

To find out more about your rollover options contact us today.