Terms of Use Yes, contributions to a Roth IRA may be withdrawn tax- and penalty-free at any time, for any reason. After the IRA has been established for five years, earnings on contributions may be withdrawn tax- and penalty-free, provided the owner meets any of the following specifications: has reached age 59½ has become permanently and totally disabled is deceased is withdrawing the funds for first-time home purchase First-time home purchase withdrawals are limited to a maximum wi  More...

Terms of Use What is a 403(b)? A 403(b) is an employer sponsored retirement savings plan that allows you to save pre-tax dollars for your retirement. A Roth 403(b) permits only after-tax contributions but allows you to diversify your tax risk by letting eligible participants make tax-free withdrawals after retirement. The IRS limits the amount you can contribute each year In 2025: Up to 100% of your includable compensation (if less than the elective deferral limit). Includable compensation is  More...

Terms of Use A 403(b) is a retirement plan provided by employers in nonprofit organizations. This includes school systems, hospitals and healthcare systems and religious organizations. 403(b) plans are similar to 401(k) plans which are provided by employers engaged in for-profit businesses. Contributions to a 403(b) plan are pre-tax and come directly out of your paycheck. In the eyes of the government you've actually earned less (your 403(b) contribution is deducted from your earnings)   More...

Terms of Use What is a Roth IRA? The purpose of a Roth IRA is to put away money for retirement. To be classified a Roth IRA, the account or annuity must be designated as a Roth IRA when it is set up. An IRA can be a Roth IRA, but neither a SEP IRA nor a SIMPLE IRA can be designated as a Roth IRA. Roth IRAs are funded with after-tax dollars; the contributions are not tax deductible but qualified distributions are tax-free. You may be able to take a Saver's Tax Credit of 10% to 50% of the co  More...

Terms of Use The future of Social Security Much is being talked about these days about the future of Social Security. Social Security is primarily financed by payroll taxes. As long as people work, the system will never completely run out of money. The Social Security taxes you pay go into the Social Security Trust Funds and are used to pay benefits to current beneficiaries. Estimates made by the Social Security Board of Trustees are that in 2035 the Trust Funds will be depleted. What happens th  More...

Terms of Use People often associate trust funds only with the wealthy. But a trust actually can be an effective financial tool for many people in many circumstances. A trust is a separate legal entity that holds property or assets of some kind for the benefit of a specific person, group of people or organization known as the beneficiary . The person creating a trust is called the grantor , donor or settlor . When a trust is established, an individual or corporate entity is designated to oversee   More...

Terms of Use Table of Contents Single vs. Flexible-Payment Annuities Fixed vs. Variable Annuities Fixed and Variable Annuity Expenses Deferred vs. Immediate Annuities Withdrawing Money from a Deferred Annuity Why Buy a Deferred Annuity? Why Buy an Immediate Annuity? Options with Guarantees Before You Buy an Annuity Consider the Following Some Questions to Ask Before Buying Confused about annuities? You're not alone. Many people have difficulty understanding them. The main reason for a  More...

Terms of Use Yes , you can have as many Roth IRAs as you wish, but there are strict limits on how much you can contribute to these accounts during any given tax year. No matter how many IRAs you have or what type (Traditional, Roth or SEP) you can contribute no more than $7,000 per year for tax year 2025 ($8,000 if you're age 50 or over). Roth IRA contributions are only allowed if your income (technically your Modified Adjust Gross Income or MAGI ) is below a certain level: 2025 Income li  More...

Terms of Use: Variable annuities have become a part of the retirement and investment plans of many Americans. Before you buy a variable annuity, you should know some of the basics – and be prepared to ask your insurance agent, broker, financial planner, or other financial professional lots of questions about whether a variable annuity is right for you. This is a general description of variable annuities – what they are, how they work, and the charges you will pay. Before buying any v  More...

Terms of Use A 403(b) plan is a retirement savings plan (also known as a tax-sheltered annuity plan) for employees of public schools and certain tax-exempt organizations (hospitals, charities, churches, etc. as determined by Section 501(c)(3) of the Internal Revenue Code. In a 403(b) program, you have the opportunity to contribute pre-tax dollars, reducing your taxable salary, and both your contributions and earnings grow tax-deferred until they are withdrawn. Taxes are paid when the money   More...