Remember, Our Government Wants and Needs Your Money!
ST. CROIX INSIGHTS
Remember, Our Government Wants and Needs Your Money!
BY BRETT ANDERSON/ST.CROIX ADVISORS, LLC
We work hard contributing our own money into our retirement accounts year after year, with just one catch, it’s not all ours.
Part of your retirement account belongs to our government. Trade offs, is probably the key word here. Congress established a provision for all types of retirement accounts: IRA, 401k, 403b, SEP, Simple IRA, Roth, Cash Balanced Plan and Pension Plan to mention a few. You need to play by the rules you’ve agreed upon to fund any one of these types of accounts. Here’s a list of some of the rules you need to comply with when you have a retirement account:
- Age 59 ½ distribution rule
- Age 70 ½ required minimum distribution rule
- 10% penalty for early withdrawal
- IRA rollover
- Beneficiary arrangement
If you don’t play by the rules, what you expected from your retirement accounts may not materialize. It’s important to follow the rules when it comes to your IRA, Roth, 401k, SEP, or Simple IRA.