Best Freez

Archive for September, 2009

• Ask your boss to get you one. Take a poll and you will see that almost everyone you work with probably wants one, too. Choose the best person to approach your boss to ask about establishing a 401(k) company plan or a SIMPLE for all of you. Offer to do the research yourself or with a colleague. Many excellent plans are offered by different mutual funds companies, all of whom will set up a plan for your company’s needs; Fidelity Investments (800-343-9184) and Vanguard Group (800-662-7447), for example, are two of the largest 401(k) money managers and wonderful places to start looking.
INDIVIDUAL RETIREMENT ACCOUNTS
If you are working for a company that still won’t offer you a retirement plan, your only other option is an IRA, or individual retirement account. Starting January 1, 1997, you can make an IRA contribution of up to $2,000 for yourself, and if you’re married, you can also contribute $2,000 for your nonworking spouse. In order to do this, the combined income of both spouses has to be at least equal to the amount contributed to the IRA. You can also have an IRA in addition to an employer’s retirement plan, but your contributions may not be tax- deductible.

The longer you can let it sit there, in most cases the better off you’ll be. But the government won’t let it sit there (tax-free!) forever. They want their taxes on your retirement money. According to a formula specified by the IRS, you have got to start taking money out of our retirement plans by April 1 in the year after you turn 70Y2. There is one big exception: Begin- fling January 1, 1997, if you are still working, your retirement money is in an employer-sponsored plan such as a 401(k), and you are 70Y or older, you do not have to make withdrawals until April 1 following the calendar year in which you do retire.