Your goals. Our tools
Use our tools to find out how well your current savings and future contributions can provide for your retirement. Choosing to spend less on certain expenses now could make a huge impact on your financial soundness long-term. For example, you could spend $3,600 a year on car payments for a new car during a 5-year loan contract. Or, you could watch that money grow over a 40 year period. Consistent, dedicated savings might not sound glamorous, but it can provide you freedom and control over your lifestyle in the future.
You have options when it comes to retirement planning.
We have everything you need to get started and would be happy to work with you in defining a plan.
Simplified Employee Pension (SEP) IRAs
As a small business owner, you can use Extraco to help yourself and your employees save for retirement. Created for busy people like you, it’s easy to set up and maintain. This plan allows participants to make pre-tax contributions and can be a cost-effective alternative to a 401(k) plan.
- You can set up this plan for you and your eligible employees
- Contributions are flexible, allowing you to contribute up to 25%
- Contributions are deductible as a business expense and are not required every year, there's minimal paperwork involved and unlike some other types of retirement plans, there are no IRS reporting requirements
See bottom of page for disclosures.
A traditional plan allows participants to make pre-tax contributions. It offers employers flexibility and allows them discretion to make contributions, such as a matching contribution on behalf of employees. If you do not have employees, we can develop a solo 401(k) retirement plan.
Our approach involves:
- Understanding your aversion to risk
- Focusing on your long-term goals
- Deciding how you want to live after you retire
- Determining if you will outlive your savings or how best to make it last
- Protecting your retirement can be as important as planning your retirement
Traditional and Roth IRAs
Traditional and Roth IRA contributions are tax-deductible (certain restrictions apply) and earnings are tax-deferred until funds are withdrawn. A Roth IRA may be tax-exempt at withdrawal, an important consideration when you’re retired. These accounts are designed for people who have earned income and are able to set aside additional money for retirement above and beyond other retirement accounts.
- Rollover your former 401(k) or other employer-sponsored retirement plans into a rollover IRA to consolidate your assets
- Select from an array of investment options that may be significantly greater than those available through your former employer-sponsored plan
- Easily monitor your investments in one place
A profit-sharing plan accepts discretionary employer contributions. It is a plan that gives employees a share in the profits of a company. Under this type of plan, an employee receives a percentage of a company’s profits based on its quarterly or annual earnings. It’s a great way for a business to give its employees a sense of ownership in the company.
- Flexible contributions – contributions are strictly discretionary
- A good plan if cash flow is an issue
- Administrative costs may be higher than more basic arrangements such as a SEP IRA plan
- May need to test that benefits do not discriminate in favor of the highly compensated employees
Cash Balance Plans
The Cash Balance Plan is tax-deductible and assets grow tax-deferred while they’re in the plan’s trust. It allows for significantly larger contributions allowing you to accelerate retirement savings.
- Since contributions are tax deductions for the sponsoring entity or sole proprietorship, significant tax savings are realized in the very first year the plan is adopted
Defined Benefit Plans
For sole proprietors and owner-only corporations, a Defined Benefit Plan is an effective option for maximizing your tax savings and retirement benefits.
- Plan can be utilized to lower taxes and accumulate significant tax-deferred retirement savings
- Once the plan is no longer needed to accrue retirement benefits, it can be terminated and assets moved to a 401(k) Profit Sharing Plan or IRA as part of the plan’s termination
- Assets can continue to grow tax-deferred until they are distributed directly to the participant or beneficiary