Dependable Retirement Planning Advisors

Huntington Park Retirement Planning

To some people IRA Huntington Park retirement planning accounts are a mystery. So many CA employers these days offer 401k accounts, that IRA's are not as common as they once were. This really is a shame, because an Huntington Park planning IRA account can really help a person prepare to retire.

Having and Eating your Cake

The biggest misconception when it comes to Huntington Park IRA planning accounts is that a person cannot have both a 401k and an IRA at the same time. This is not the case, and it's too bad more people don't know this. There is a limit set by the IRS regarding how much money a single person in Huntington Park (or a married couple) can invest for retirement. This limit on investment however is a monetary one and is based on annual income (combined for married couples). There is no regulatory limit on the amount of Huntington Park retirement planning accounts one person can have.

This means that if you choose to split up your CA retirement planning funds into 401k's, IRA's or even Annuities, you can do so. Of course, all of them combined must not exceed your allotted preset California and Federal governmental limit but you can still do it. There are a couple of reasons why a person would want to split up his or her California retirement planning investments into different fund types.

Benefits and Tax Breaks

The main reason you might want to consider an IRA Huntington Park retirement planning account in addition to your Huntington Park 401k account involves the benefits of both. There are different tax breaks and benefits to each account type. 401k accounts typically are easier to borrow from. The way these usually work is that the employee is able to take out a loan from their 401k, and if the loan is paid back on time there are no tax penalties on borrowing the money. With an IRA account, there are typically taxes and penalties assessed for early withdrawals.

However, Huntington Park IRA's have other benefits that 401k's do not. For example, IRA's typically offer significant tax breaks for people. This means that you owe less to the government and keep more money for investing. Additionally, IRA's can have more investment options than 401k's. The reason for this is that while your employer determines what investment options your Huntington Park retirement planning account will have, you get to choose how your IRA funds are invested. This of course has a limit, but it is less limited than with a 401k.

Moving can be Difficult

If you are like most people, you do not intend to stay employed where you are until you retire. This is typical. Few people stay with the same company throughout their working lives. Every time you move to another company, your 401k has to be moved with you. Depending on the type of 401k structure each employer has you may or may not have to pay fines, fees, or penalties when doing this. This can seriously deplete the value of your employer sponsored Huntington Park retirement planning account.

Unfortunately, there is no way around this. An employer is not going to pay to maintain a Huntington Park retirement planning account for a former employee, and a new employer is not going to bend over backward to accommodate your old one. This is where having an IRA California retirement planning account comes in handy. If you subsidize your employer sponsored 401k account with an IRA, you can at least be guaranteed that the IRA will have some stability.

IRA Huntington Park retirement planning accounts do not need to be moved around. Once open, they pretty much remain as is. The only losses in monies would result from either losses due to investment, or penalties for early withdrawals. There is no need to close out the account and open a new one when you change employers.

This is also beneficial because sometimes we take a job with an employer who doesn't offer a retirement savings plan in their benefits package. When you leave a Huntington Park employer, you typically have two options for the funds in your 401k account. You can either take the money out in cash (which involves deep taxing and paying a penalty typically), or for less penalties you can transfer the funds into another CA retirement planning account. If your new employer doesn't have a 401k program and you do not have an IRA Huntington Park retirement planning account, you are forced to pay the fees and take the money out in cash. This will force you back to square one with your plans to retire. However, with an IRA Huntington Park retirement planning account, the funds can just be rolled in and you are good to go.

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