Retirement in Oakland, CA

As life expectancies increase, planning for a comfortable financial future is more important than ever. Offering retirement benefits to your employees can help them plan for their futures while also bringing a host of benefits to you, the employer. At Burns Employee Benefits Insurance Services LLC, we’re here to help businesses in Oakland, CA, and the surrounding communities build a retirement benefits package that suits your needs and provides value to your employees.

Types of Retirement Plans

Navigating the world of retirement plans can be complex, but understanding the options available is crucial for effective retirement planning. Whether you’re an individual planning for your future or a small business owner looking to provide for your employees, knowing the types of retirement plans and their features can help you make informed decisions.

What Is the Typical Retirement Age?

The typical retirement age varies depending on personal circumstances and the type of retirement plan you have. Generally, the full retirement age for Social Security benefits is 66 to 67, depending on your birth year. However, many retirement plans, like 401k and IRAs, allow you to start withdrawing funds penalty-free at age 59½. When deciding the right age to retire, it’s essential to consider your financial needs, health and the retirement lifestyle you envision.

What Is the Difference Between a 401k and a Roth 401k?

A traditional 401k is a retirement plan offered by many employers. Contributions are made pre-tax, which can reduce your taxable income. Taxes on earnings and contributions are deferred until you withdraw the funds, typically in retirement.

A Roth 401k combines features of a traditional 401k and a Roth IRA. Contributions are made with after-tax dollars, so you pay taxes upfront. Contributions and earnings can typically be withdrawn tax-free in retirement.

Employers may offer both types of 401k plans, sometimes with a matching contribution. Consult a tax planning professional to help you choose between a 401k and a Roth 401k.

Other Retirement Plans

Your other retirement plan options may include the following:

• Roth IRA
• Traditional IRA
• 403b
• Roth 403b
• Simple IRA
• Small Business 401k

Contact Us to Start Saving for Retirement

Contact Burns Employee Benefits Insurance Services today to learn more about your retirement plan options and start saving for your future.