Are You Taking Advantage of Your Retirement Planning Options?
by Anonymous

(Raleigh, NC) – January 31, 2003 — Yes, the stock market has tanked and most folks'
401(k) plans, IRAs and other investments are looking pretty peaked. Still, that doesn't mean you should ignore all the benefits of systematic retirement plan investing. But first you need to understand the regulations and their impact on your personal tax liability – a daunting task indeed.

Enrolled Agent Sherrie King of King Tax & Accounting offers the following advice to help you get the most out of your retirement funds:

If you are fortunate enough to work for a governmental agency or a business that offers a 403(b), 401(k), SEP, SIMPLE, or other tax-deferred retirement plan, put every dollar you can into it. You'll not only reap the benefits of tax-deferred growth until you retire, but you'll also receive the benefit of whatever matching contribution your employer makes. There is one caveat however: if you do not have the power to select the investment vehicle for your funds, be very careful. (Think Enron!)

If, on the other hand, you aren't covered by an employer plan or by your own SEP, and you are restricted to investing a maximum of $2,000 per year into an IRA, things just got a lot better for you! Starting with tax returns for the year 2002, you can now set aside a maximum of $3,000 per year in your own IRA. If you are 50 or older before the end of 2002, your limit increases to $3,500.

If you'd like to know more about the benefits of tax-deferred investments or the impact of IRA contributions on your personal tax liabilities, call an expert — an Enrolled Agent. Enrolled Agents are the only federally-licensed tax professionals. If you would like a referral to an Enrolled Agent in your vicinity, call the NAEA toll-free EA Referral Hotline at 800-424-4339. Or, go to the NAEA Web site at www.naea.org.

About King Tax & Accounting
King Tax & Accounting is operated by Sherrie A. King, an Enrolled Agent. The practice represents clients in all types of businesses, as well as individuals, in the areas of taxation and accounting. They provide tax preparation, tax advice, and tax planning services in addition to helping taxpayers resolve problems with the IRS. For more information, contact (919) 676-2114 or www.KingTaxAccounting.com.

King Tax & Accounting is a member of GMG Alliance – a strategic alliance with Development Strategies (www.RequestDS.com) that offers expert professional services in business strategy, tax accounting, and human resources.






This article courtesy of http://www.retirement-happy.com.
You may freely reprint this article on your website or in
your newsletter provided this courtesy notice and the author
name and URL remain intact.

Submit Your Article