Saving for retirement is one of the most important investments you can make. Achieving that enjoyable retirement means starting early and contributing regularly to tax advantaged accounts that allow your funds to grow more rapidly.
GEBA's licensed Consultants have the expertise and products to help you achieve your retirement goals.
Achieve a Secure Financial Tomorrow Through Retirement Planning
The good news about lengthening life expectancies is that many of us will spend roughly ¼ of our lifetimes as retirees! That leisure time we’ve been anticipating now lasts, on average, 20 years or more. But from a financial planning perspective, that is exactly the challenge. By the time our working years are over, we need to have built up investments and other sources of income that will sustain us comfortably for 20+ more years.
One key to this challenge is setting aside funds regularly in tax-advantaged plans that allow your earnings to accumulate free of federal taxes. Year after year, you earn dividends or interest on money that would otherwise have been paid in taxes. A second key is compounding, the additional return you receive each year on monies earned in prior years.
The chart below illustrates the impact of compounded tax-free earnings accumulation:
In some plans, like Traditional IRAs, the taxes are deferred, meaning you pay the federal income taxes when you withdraw them and are often in a lower tax bracket. In others, like Roth IRAs, the earnings are tax-free when you withdraw them. Both tax-advantaged treatments allow you to benefit significantly when your funds are invested over many years.
Stages of Retirement Planning
The steps you should be considering today depend on where you are in the process of retirement planning. What stage applies to you?
GEBA’s Tax-Advantaged Retirement Plans
GEBA offers leading tax-advantaged retirement plans that are a great supplement for participants in a federal pension, Thrift Savings Plan (TSP), or 401(k) plan.
Individual Retirement Accounts (IRAs)
For tax year 2013, individuals with earned income can contribute up to $5,500 per year ($6,500 if over age 50) into an IRA. Withdrawals can begin as early as age 59½.
- A Traditional IRA allows tax-deductible contributions to qualifying taxpayers based on income, filing status, and coverage in an employer-sponsored plan. Earnings are tax-deferred and withdrawals after age 59½ are taxed as ordinary income. Required minimum distributions must begin by April 1 of the following year in which you turn age 70½.
- In a Roth IRA, contributions are not deductible, but withdrawals after age 59½ are free of federal income tax if the funds have been invested for five years or more. Eligibility for a Roth IRA is determined by your income and filing status. There are no required distributions for a Roth IRA.
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An Annuity is a long-term contract with an insurance company that has no maximum contribution limits. Your account grows tax-deferred during the accumulation phase and then may make periodic lifetime payments to you in the distribution phase. An insurance feature also offers beneficiary protection in the case of your death. GEBA offers both fixed and variable annuities.
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Learn More About GEBA MAX Fixed Annuity >
For full details on income limits, eligibility and plan features for these tax-advantaged accounts, please request the GEBA/GEMBA Summary Plan Description and/or the prospectus for the specific investment option being considered. Group Annuities and Individual Retirements Accounts are offered through Government Employees' Mutual Benefit Association, Inc. (GEMBA).