Dependable Retirement Planning Advisors

Maryland Retirement Planning

Maryland retirement planning consists of many things. Amongst those are your 401K and your IRA, with the 401K being one of the easiest ways in which you can save for retirement. You sign up though your Maryland employer and you then have money taken out of your paycheck and contributed to the account. From there, your employer matches the contribution up to a certain percentage. Usually, they match up to 50% of your contribution.

You should know that both of these are tax advantaged accounts that will benefit you greatly as long as you don't cash them out early. If you hang on to these accounts the way that you should, they can produce a valuable income for you. They produce multiple income streams, which is very important.

The 401K

A unique aspect of the 401K is this: The more money you deposit toward your 401K as a part of your Maryland retirement planning, the more free money you are going to get. There are reasons behind why so many individuals in Maryland are getting free money toward their retirement. The first is the pre-tax contributions that come out of your paycheck. You are lowering your taxable income this way, which means you are paying less tax to the IRS.

Another benefit to this account as a MD financial planning tool is the matching contribution that you receive from your MD employer. To be more specific, the amount that you receive is 50 cents for every dollar for the first 6% that you save. You are also receiving tax-deferred growth. This means that you don't have to pay taxes on the dividends and capital gains that are earned by the account and why it is a preferred Maryland retirement planning vehicle.

As for how much you can contribute to make your Maryland retirement planning successful, that depends on the tax year that you are on. When you are integrating your 401K into your income planning, you have to take into consideration that your maximum contribution amount can change. So if you are in a position where you can contribute the yearly maximum, you can make the appropriate changes to make sure that it happens.

Basically, the 401K makes a great part of your Maryland retirement planning because it is penalty-free. Many don't understand that they are dealing with a Penalty-free retirement account in Maryland. Others don't invest because they are afraid that they are going to prematurely break into the account and spend the money. But there are penalties for this to discourage it. The penalties are imposed by the IRS as early distribution penalties and taxes on the capital gains. It is after you retire or you are the age 59.5 or older that you can receive the income free of any penalties.


The IRA is another valuable part of your Maryland retirement planning. Many individuals have both a 401K and an IRA. They have the money for both taken out of their paychecks as pre-tax contributions. This makes them both tax advantaged. However, with an IRA, the tax advantages can vary based upon the type of IRA that is being opened.

You have both the traditional IRA and the Roth IRA. Both can be valuable parts of your Maryland retirement planning. The traditional IRA offers tax-deferred growth, while the Roth IRA offers tax-free growth, which means no taxes are paid when you retire. The traditional IRA means that taxes will be paid when you retire on the withdrawals that you take.

You can take early withdrawals from your IRA, but you will be penalized. You will be penalized in the way of an early withdrawal penalty and the taxes on the amount that you took. This is paid along with your taxes that are due and also can put a damper on your Maryland retirement planning.

As for when is a good time for you to begin your personal planning for retirement, it is never too early for early retirement planning and here is why: There are individuals who tend to get started later than others. They tend to have to put in more money in the end so that they can catch up with their counterparts in regards to the percentage they have saved. You could live decades after you retire, so you need to do what many in Maryland do and that is save every dime that you can.

In addition to your IRA and your 401K as a part of your Maryland retirement planning, a good savings plan in Maryland can go a long way. You can also try investing and look into other account types so that your retirement planning in Maryland can be a success. And if you need advice on your planning from a professional, don't hesitate to ask for advice.

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Retirement Planners In Maryland

Basil Herzstein, CFP
Basil Herzstein, CFP
751 Rockvile pike
Suite 4A
Rockville, MD 20852

Ryan Wibberley
Ryan Wibberley
9841 Washingtonian Blvd
Suite 415
Gaithersburg, MD 20878

Geoffrey Burroughs
Geoffrey Burroughs
2330 W. Joppa Rd
Lutherville, MD 21093

Michael Balakirsky MBA
Michael Balakirsky MBA
11755 Bragdon Wood
Clarksville, MD 21029

David Middleton
David Middleton
3 Bethesda Metro Center
Suite 700
Bethesda, MD 20814

Nilos T. Sakellariou, CFM
Nilos T. Sakellariou, CFM
Annapolis, MD 21401

Brian Kuhn
Brian Kuhn
8161 Maple Lawn Blvd
Suite 400
Fulton, MD 20759

Brion  Harris
Brion Harris
115 West St.
Suite 400
Annapolis, MD 21401

Ken Grier
Ken Grier
1 Research Court Suite 450
Rockville, MD 20850

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