Business Retirement

Larger Organizations

  • 401(k) – a feature of a qualified profit-sharing plan that allows employees to contribute a portion of their wages to individual accounts
    • Elective salary deferrals are excluded from the employee’s taxable income, except for designated Roth deferrals
    • Employers can contribute to employees’ accounts
    • Distributions are includible in taxable income at retirement, except for qualified distributions of designated Roth accounts
  • 403(b) – also called a tax-sheltered annuity or TSA plan. This is a retirement plan offered by public schools and certain 501(c)(3) tax-exempt organizations.
    • Employees save for retirement by contributing to individual accounts
    • Employers can also contribute to employees’ accounts

Small Business & Self-Employed

  • SEP IRAs – a SEP is a Simplified Employee Pension plan, that provides employers a simplified method to make contributions toward their employees’ retirement and their own retirement. Contributions are made directly to an IRA set up for each employee (a SEP-IRA).
  • SIMPLE IRAs – a SIMPLE IRA plan is a Savings Incentive Match Plan for Employees. It gives small employers a simplified method to make contributions toward their employees’ retirement and their own retirement. Under a SIMPLE IRA plan, employees may choose to make salary reduction contributions and the employer makes matching or non-elective contributions. All contributions are made directly to an IRA set up for each employee (a SIMPLE IRA).
  • Solo 401(k) plans – the one-participant 401(k) plan is a traditional 401(k) plan covering a business owner with no employees, or that person and his or her spouse. These plans have the same rules and requirements as any other 401(k) plan. The business owner wears two hats in a 401(k) plan: employee and employer. Contributions can be made to the plan in both capacities.

Personal Retirement Services

Custodial Services

With our unique, in-house custodial services, remarkable flexibility and service can be attained in regards to investment options and strategies for many plan types.

Individual Retirement Accounts (IRAs)

  • Traditional IRA – a personal savings plan that gives you tax advantages for saving for retirement. Contributions to an IRA may be tax deductible. Contributions to a Traditional IRA are not taxable until distributed.
  • Roth IRA – a personal savings plan that is the opposite of a Traditional IRA. Contributions to a Roth IRA are not tax deductible. However, distributions from a Roth IRA are not included in taxable income.
  • Spousal IRA – if you file a joint return, you and your spouse can each make IRA contributions even if only one of you has taxable compensation. The amount of your combined contributions can’t be more than the taxable compensation reported on your joint return. It doesn’t matter which spouse earned the compensation.
    • If neither spouse participated in a retirement plan at work, all of your contributions will be deductible.
  • Beneficiary IRA – a beneficiary can be any person or entity the owner chooses to receive the benefits of a retirement account or an IRA after he or she dies. Beneficiaries of a retirement account or traditional IRA must include in their gross income and any taxable distributions they receive.

IRA Contribution Limits

Important Note: The IRS sets contribution limits for Retirement Accounts each tax year. It is solely the account owner’s responsibility to keep track of the contributions made to their Retirement Account and ensure that that their annual contributions do not exceed this contribution limit. The IRS can adjust this limit each year – so stay informed.

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2018 Coverdell ESA Contribution Limits:

  • $2,000

2018 IRA & Roth IRA Contribution Limits:

  • Under Age 50 – $5,500
  • Age 50 & Above – $6,500

2018 SEP IRA Contribution Limits:

  • 25% of Employee’s Compensation or maximum of $55,000

2018 SIMPLE IRA Contribution Limits:

  • Under Age 50 – $12,500
  • Age 50 & Above – $15,500

2018 Coverdell ESA Contribution Limits:

  • $2,000

IRA Contributions after age 70 ½

You cannot make regular contributions to a Traditional IRA in the year you reach 70 ½ and older. However, you can still contribute to a Roth IRA and make rollover contributions to a Roth or Traditional IRA regardless of your age.

Required Minimum Distribution (RMD)

You cannot keep retirement funds in your account indefinitely. You generally have to start taking withdrawals from your IRA or retirement plan account when you reach the age 70 ½. Roth IRAs do not require withdrawals until after the death of the owner. Your required minimum distribution is the minimum amount you must withdraw from your account each year.

  • You can withdraw more than the minimum required amount.
  • Your withdrawals will be included in your taxable income, except for any part that was taxed before (your basis) or that can be received tax-free (such as qualified distributions from designated Roth accounts.

We can help you consolidate your account or rollover a 401(k) from a previous employer.

Elder Care

Elder care planning creates a financial plan for the years when you are no longer able to work. At American Investment & Trust, we will assist you in planning for your future living expenses, investments, taxes, long-term care, and developing a power of attorney.

Social Security Analysis

Understanding Social Security and determining when to claim your benefits can be a complex process. We can help you evaluate your unique situation and develop a plan that is tailored to your specific circumstances.