By Eric J. Robbins
This e-book offers the integral details had to comprehend the monetary aspect of the retirement making plans coin. A reader of this ebook will start by means of studying concerning the numerous plan varieties which are to be had to employers to provide their staff. themes on the topic of compliance trying out might be completely mentioned, in addition to felony concepts used to shift merits in want of hugely compensated staff. a few employers don't sponsor a plan. In such instances, retirement savers might want to comprehend the choices to be had in the international of IRAs. This e-book isn't meant to supply funding suggestion, yet quite to steer how retirement reductions automobiles functionality and the way they are often successfully deployed. many fiscal execs locate that their consumers will ask questions about all facets in their monetary lifestyles. therefore, this ebook also will talk about non-investment comparable issues reminiscent of housing thoughts, Social safety making plans, Medicare making plans, and some different uncomplicated insurance-based concerns confronted via all retirees
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Extra resources for Essentials of retirement planning : a holistic review of personal retirement planning issues and employer-sponsored plans
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Initial Concerns in Retirement Planning 27 Self-employed individuals can deduct from their net earnings 50 percent of the Social Security tax that they pay. This is because they pay both the employee’s tax (which you already pay if you have or have had a job) and the employer’s half, which your employer pays perhaps without your knowledge. 40. Don’t concern yourself with the calculation of this number. 60. 60). We are not done quite yet. 12) or $53,000 (2015 limit). 12. This is not very complicated at its core, but it does involve a multistep process.
This method will provide a given dollar amount for every qualifying year of service given to the company. This method does not give any weight to the FAC. It treats the executives potentially the same as the rank-and-file employees. For this reason, this method is a popular choice of union-negotiated deals. If the company elected to pay $100 per year of service, then the employee with 30 years of service would receive $3,000 per month ($100 × 30 years). The last alternative method is called the flat benefit method.
Describe the basic features of a cash balance (CB) plan and its potential usefulness. • Describe a target benefit (TB) plan and its potential usefulness. • Describe the basic features of an MPPP and its potential usefulness. 1 Qualified plan types Pension-type plans Profit-sharing-type plans DB plans Profit-sharing plans CB plans 401(k) plans MPPPs Stock bonus plans TB plans ESOPs ESOP, employee stock ownership plan. A Pension-Type Plan Versus a Profit-Sharing-Type Plan Just like all qualified plans are either a DB or a DC plan, all qualified plans are also either a pension-type plan or a profit-sharing-type plan.