When it’s time to look long-term in Atlanta, a Retirement Planning Attorney from The Law Office of Paul Black can outline your options. Call to talk with us!
Retirement Planning Lawyer in Atlanta
It’s never too early to start planning for your family’s future.
If you have questions, I’m here to help. There is no commitment and we provide free initial 15-minute phone calls. We look forward to meeting you.
Retirement planning is a way of preparing for your future by executing a savings program and managing your investments’ resources and risks. Retirement plans ensure you have enough money during your retirement years.
Planning for a successful retirement involves:
Estimating your retirement needs.
Estimating your return on investment.
Creating investment and estate plans.
Investing in a sound retirement plan can provide you and your family with a stable future.
Planning for retirement involves:
Setting retirement income goals
Saving and investing for those goals
Distributing the funds during your retirement
Retirement planning seems simple. The process of planning for retirement, however, is complex. Retirement plans may be highly personalized depending on the individual’s specific situation. There are also a number of different stages and steps to retirement.
The goal is to maximize assets, minimize taxes, and consider long-term care, leave assets to loved ones, and more.
A retirement planning attorney can help you set up a long-term plan for investments and savings.
Types of Retirement Plans
Several retirement plans come in many shapes, sizes, and rules and regulations. The US Employee Retirement Income Security Act (ERISA) protects defined benefit and contribution retirement plans.
A defined benefit retirement plan guarantees an individual a set monthly benefit at retirement. The Pension Benefit Guaranty Corporation (PBGC) offers federal insurance to protect the plan up to certain limits.
Defined contribution plans, however, do not specify an exact retirement benefit amount. In the plan, either or both the employee or employer can contribute a certain amount to the employee’s account annually.
After retirement, the employee receives their account balance and investment gain minus any losses incurred. The value of the retirement accounts varies depending on the investments made. Here are examples of defined contribution plans:
Employer-Sponsored Retirement Plans
The 401(k) is a profit-sharing plan offered by major corporations that permit employees to contribute a specified share of their wages to their plan accounts. Taxable income in a 401(k) plan includes designated Roth referrals and distributions.
A 403(b), which is also called a tax-sheltered annuity retirement plan, is used by employees of public schools, tax-exempt organizations, Code Section 501(c)(3) employees, and some ministers.
Individual Retirement Accounts (IRA)
Individual Retirement Accounts (IRAs) provide participants with tax benefits for retirement savings. Individuals can contribute the annual maximum amount permitted by the Internal Revenue Service. IRAs offer investors a chance to save on taxes.
There are various types of IRAs, which include:
- Traditional IRAs: These contributions are tax-deductible. A person who earns money from an IRA is not taxed until they retire. At retirement, withdrawals are taxed as income.
- Roth IRA: The contributions are made after taxes and are not tax-deductible, but earnings and withdrawals are not subject to tax.
- SEP IRA: Employees can contribute to traditional IRAs established in their names by employers, typically small businesses or self-employed individuals.
- SIMPLE IRA: These IRAs are available to small businesses without other retirement savings plans. Savings Incentive Match Plan for Employees (SIMPLE) IRAs allow employer and employee contributions, similar to 401(k) plans, but with simpler administration and lower contribution limits.
Employee Stock Ownership Plan (ESOP)
An Employee Stock Ownership Plan (ESOP) allows employees to possess or invest in company stocks at a fair price. The employees receive their share from a trust.
Cash Balance Plan
A cash balance plan is a versatile type of defined contribution plan. With it, you can invest your money in various mutual funds and other investments, as well as fixed-income options like money market funds or variable rate options. Usually set up like an IRA, these plans are not considered taxable income as per the internal revenue code until you start withdrawing the money.
What Is the Role of a Retirement Planning Attorney?
An attorney can assist you with the overwhelming planning process as well as provide legal advice to protect your long-term interests regardless of the type of retirement plan you have.
Your attorney can assist you in the following ways:
We can assist you in choosing the right design and aspects of your plan
Advise you on how to take advantage of tax planning and tax laws
Resolve any legal and administrative issues like eligibility and compensations, and assist during hardship withdrawals
Ensure that your documents are drafted to protect your long-term interests
Provide personalized advice on choosing and monitoring retirement plan investments
Provide advice on how to reduce the risk of financial statement fluctuation