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Retirement Planning

Defined Benefit Plan Definition

A defined benefit plan, also known as a traditional pension plan, is a retirement plan where the employer guarantees a specific annual income for the employee based on various factors. This includes years of service, final salary, and age. The employer bears all the risks associated with funding the plan.

Some defined benefit plans also offer the option for employees to receive a lump-sum payment upon retirement. However, it is important to note that while federal pension insurance protects those who choose the annual income option, those who opt for a lump-sum payment are responsible for managing their funds effectively.

Roth IRA Conversion

When considering the distribution of assets from a Traditional IRA into a Roth IRA, it is important to understand the potential tax implications. A Traditional IRA allows fo...

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Tax-Deferred

Tax deferral refers to the delay of taxes and often the initial investment, until the funds are disbursed. This strategy is commonly used in retirement planning, allowing in...

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Non-qualified Retirement Plan Definition

A non-qualified retirement plan, often referred to as a NQRP, is a type of pension plan that does not meet the criteria for special tax treatment under the Internal Revenue ...

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Traditional IRA

Traditional Individual Retirement Accounts (IRAs) were created with the intention of incentivizing individuals to save for their golden years. This is achieved through three...

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