In the Virgin Islands, consultants and financial advisors help consumers choose the best retirement plans for them. The plans help consumers save for retirement based on predetermined rates and contribution limits. Local consultants and advisors explain all the pros and cons of each selection for consumers looking for a plan.
An IRA Retirement Plan
The retirement plans allow the account holder to contribute a set amount each year. All contributions are tax-free and deducted before taxes are applied to the consumer’s wages. The consumer has the option to contribute into the account for their preferred duration. Any early withdrawals from the plan are taxed, but all contributions into the plan are tax deductible.
Roth IRA Plans
The Roth IRA plans are the exact opposite of a traditional IRA or 401-K plan. The contributions are taxed before they are added to the retirement plan. On the other hand, the consumer has the right to deduct any value without facing any further tax implications. The consumer won’t face any limitations on how much they withdraw. The deductions from the account aren’t paid back like a loan. Like all IRAs, all proceeds belong to the consumer, and they can choose to stop contributions at any time.
401-K Retirement Plans
401-K plans are employer-based retirement plans in which the employer matches all contributions made by the worker. The contributions are deducted from the worker’s wages before taxes are applied. The employee sets up the value of their contributions each year and how the option for increased rates according to the terms of the account.
SEP IRA Plan
The SEP IRA plan is designed for self-employed individuals. The plan allows the individual to contribute a portion of their earnings into the account before taxes. The same IRA guidelines apply for early withdraws, but the owner deducts all contributions on their taxes. They also have the option to roll the plan over into a Roth IRA before they retire.
In the Virgin Islands, financial advisors and consultants present a variety of retirement plans to consumers. Each selection offers its own benefits including tax-deductible contributions. Consumers who want to learn more now contact David Johnson Cane Bay today.