Partnering For Your Future™.
What Qualifies a Retirement Plan?
An employer-sponsored retirement plan that complies with the Employee Retirement Income Security Act (ERISA) of 1974 and certain provisions of the Internal Revenue Code (IRC) is "qualified" to accept employer contributions. Additionally, the earnings on contributions held in the plan are not taxable until withdrawals are made. A full range of qualified retirement plan types, designed to fully comply with ERISA and the IRC, are available to employers of all sizes.

These tax-deferral provisions are an advantage if the employee is in a lower federal tax bracket when he or she begins receiving distributions from the plan at retirement. ERISA and the IRC provide specific rules about the amount and timing of distributions.

Nonqualified plans that defer compensation until some future time are based on agreements between the employer and the employee that promise payment at a later date for services performed currently.

One similarity between qualified and nonqualified plans is the premise that the employee will be in a lower federal income tax bracket when payment is made, usually at retirement.

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Copyright © 2008 -- Liberty Publishing, Inc. All rights reserved.
Gene G. Stern, CLU®, CRPC, CFP®
President
805 Executive Ctr Dr W
Suite 120
St Petersburg, FL 33702

ph: 727.369.1512
fax: 727.578.4024
toll free: 800.232.3653

Gene.Stern@LFG.com

The Planning Process: Retirement Planning

Financial independence during retirement is a goal that many of us desire but rarely plan for adequately. We can estimate what you need to maintain your current lifestyle at retirement. Any company-sponsored retirement plans, individual retirement accounts, savings accounts, and other sources of income are evaluated. Then, an effective, step-by-step strategy is determined, taking advantage of current tax laws and suitable investment vehicles. Creating a strategy will help set the stage for a happy, secure retirement.

Five essential steps on the road to retirement

Establish Your Objectives
Determine Your Investment Style
Evaluate Investments
Choose an Appropriate Investment Plan
Execute and Periodically Examine the Plan
Establishing your retirement plan through Lincoln Financial Advisors means maximum investment flexibility. You have the ability to select and then reposition your portfolio holdings to satisfy ever-changing personal and economic conditions. Our selection of self-directed retirement accounts includes:

Classic IRA - An account established and funded by individual contributions or an individual retirement plan transferred from another financial institution.

Rollover IRA - A retirement account funded by distributions received from an employer's qualified pension or profit-sharing plan upon termination of employment.

SEP-IRA - A retirement account established and funded by employer contributions.

Start now!

The longer you wait to create a retirement plan, the more you jeopardize your future happiness. You'll thank yourself tomorrow for what you start today.