A comprehensive retirement plan includes many components – your investment portfolio, your 401(k) or other plan at work, your IRA, and Social Security. Your Scott & Stringfellow financial advisor can help you establish a complete plan toward your retirement goals.

An Individual Retirement Account (IRA) is an individual qualified savings plan you set up and contribute to yourself and can be a key component of your financial plan. These savings vehicles offer tax deductible contributions, depending on your income level and earnings that are not taxed until they are distributed, usually after you retire.

You may also want to consider a Roth IRA, which does not allow you to deduct your contribution from current taxes, but your future withdrawals, subject to certain conditions, may be tax-exempt.

If you are facing a shift in job status due to retirement or changing employers, and will receive a lump-sum distribution, you should consider an IRA rollover. An IRA rollover is a special IRA into which distributions from qualified retirement plans can be deposited without creating a taxable event.

Scott & Stringfellow offers a variety of IRA and rollover options – your financial advisor can help you evaluate your choices. As with other investments, always consider your investment goals, risk tolerance and time horizons when building a retirement strategy.

Qualified retirement plans – such as 401(k)s – are one of the most beneficial ways to save for your future. Many employers will make contributions on your behalf. These plans also allow you to make either pre-tax contributions and/or possibly after-tax or ROTH 401(k)/403(b) contributions. The advantages to you are: 

• You do not pay any current income tax on your employer’s contribution 
• Earnings on investments made by the plan build up tax-deferred
• If qualified, distributions from the after-tax or ROTH portion of your account will be made free from federal taxes
• You will receive income for your retirement
• If the plan or your participation in it ends, you or your heirs will have the benefit of at least a portion – and perhaps all – of your employer’s accumulated contributions

Please contact us for more information about your personal retirement needs and the services we can provide.

Any comments regarding tax implications are informational only. Scott & Stringfellow does not provide tax or legal advice. As always, you should consult your tax or legal advisor.