Sorting out the alphabet soup of letters and numbers that describe various retirement plans can seem like a daunting task. But employees and employers alike can use these plans to reduce current tax liability and gain investment exposure, so it’s valuable to understand these tax-advantaged options and how to use them to advance your goals. This week on the show we’ll sort through the noise and help you understand the differences between various retirement plans (like SIMPLEs, SEPs, 401ks, 457s, etc.) and who gets to use them (sometimes the type of plan is dependent upon who you work for). Also, how additional options like cash balance or defined pension plans target “later” money to extend the retirement offering and expand how much money can be directed into retirement benefits, with the accompanying tax impacts.
his podcast is for informational purposes only and shouldn’t be considered advice. It’s always a good idea to get some help from a licensed professional if you’re looking to create or extend your business retirement plan.