PLANADVISER asks Hollis Lamon, President of Atlanta's Lamon & Stern, what he views to be the greatest opportunity for retirement plan advisers currently. He says it’s not only helping people understand the ins and outs of how a 401(k) works and its benefits, but also things like how much to contribute to take advantage of the employer match and other features. There are also other specifics such as what to do if a participant changes employers. Many choose to roll into an individual retirement account (IRA), but that may not always be the best option, since there may be a loan feature available if the participant moves into the new 401(k). This all needs to be explained better to participants.
"When we started working with retirement plan participants, we quickly realized that there was a tremendous need for advisers who actually spend time with both plan sponsors and participants," says Lamon.
Hollis focuses on the fact that there’s a lot of work that goes into working with both plan sponsors and the participants, making sure everyone is doing everything correctly. He suggests that advisers should be proactive with their plan sponsors to make sure that they look out for their needs. He also recommends that younger people getting started in the business should partner with experienced advisers.
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>> Products and Services
Thursday
IRON Financial - Plan Profile
Plan Investments & Balances
Plan sponsors are able to
view a summary of all approved investment options and the overall
balances. For easy reference the
available plan investments have built-in informational links to the
investments.
Quarterly Fiduciary Investment Review Package
This is a quarterly review that monitors fund performance on multiple levels and details actionable items, if any, for the coming quarter.
The report insures that the investments in the plan are in accordance with guidelines detailed in the Investment Policy Statement.
Investment Policy Statement
We work with the plan trustees
and investment committee to review or develop a comprehensive Investment Policy
Statement (IPS). The IPS provides the
guidelines and standards utilized in the selection of the plan's investment
alternatives asset classes, and provides a basis for the periodic evaluation of
the performance of these investment alternatives. We also aid the client in selecting the
actual funds that will be offered within each asset class. As part of our investment services offering,
we also screen and develop a diversified range of investment alternatives to
meet your participants' needs (with model portfolio allocation if applicable).
Investment Monitoring
Investment Monitoring
We provide our clients
ongoing support with an Investment Policy Monitoring (IPM) report comparing the
plan's investment alternatives offered to the standards outlined in the IPS,
and measured against their corresponding asset class peer groups. As needed, we guide the client through the
process of replacing investments and communicating these changes to plan
participants.
 |
| Hollis Lamon Lamon & Stern Atlanta, Georgia |
Contact Hollis Lamon of Lamon & Stern today for all your retirement planning needs! 770-951-8411
Friday
408(b)(2) Disclosure Documentation on www.LamonandStern.com
| Disclosure of Services | Lamon & Stern | ||
| Full fee disclosures associated with our retirement plans. | ||
Nationwide Retirement Services | www.nationwide.com Great West Retirement Services | www.gwrs.com Disclosure of Services Lamon & Stern Retirement Plan Service and Administration Planner [pdf] Lamon & Stern 408 (b) (2) Disclosure [pdf] Please visit our website, www.LamonAndStern.com, for more information. | ||
IRON Financial - Are You a Fiduciary?
Individuals become fiduciaries through appointment or function.
IRON 3(38) Co-Fiduciary Investment Solution
The most comprehensive qualified retirement plan solution designed to effectively shift a significant portion of the plan sponsor's liability. The hiring of a 3(38) fiduciary alters the Plan Sponsor's fiduciary responsibility as the liability now relates to the choosing and monitoring of a 3(38) investment manager.
Clarity
Plan Sponsor is engaged in a contractual relationship with IRON as the contractual fiduciary
Fiduciary Processes
IRON creates a customized Investment Policy statement that roadmaps the investment methodologies. Using propriety methodologies, IRON selects a well balanced and diversified menu of plan investments and monitors those investments in a defined timeframe. Replacement of fund options as necessary in accordance with the Investment Policy Statement.
Results
Each plan receives a quarterly fiduciary Investment Review that details fund metrics, rankings at a plan level and actionable items for the next quarter.
Retention
IRON creates a white label quarterly newsletter that is platform specific allowing you to provide customized education on a quarterly basis. IRON embraces relationships; From point of sale support to mapping of funds, IRON can help you win and retain retirement plan business. As the "plan quarterback", you can spend more time concentrating on those items that reflect your value; wealth management, rollovers, plan education and enrollment.
A section 3(38) fiduciary can protect both the plan sponsor and the Advisor/Broker.
The most comprehensive qualified retirement plan solution designed to effectively shift a significant portion of the plan sponsor's liability. The hiring of a 3(38) fiduciary alters the Plan Sponsor's fiduciary responsibility as the liability now relates to the choosing and monitoring of a 3(38) investment manager.
Clarity
Plan Sponsor is engaged in a contractual relationship with IRON as the contractual fiduciary
Fiduciary Processes
IRON creates a customized Investment Policy statement that roadmaps the investment methodologies. Using propriety methodologies, IRON selects a well balanced and diversified menu of plan investments and monitors those investments in a defined timeframe. Replacement of fund options as necessary in accordance with the Investment Policy Statement.
Results
Each plan receives a quarterly fiduciary Investment Review that details fund metrics, rankings at a plan level and actionable items for the next quarter.
Retention
IRON creates a white label quarterly newsletter that is platform specific allowing you to provide customized education on a quarterly basis. IRON embraces relationships; From point of sale support to mapping of funds, IRON can help you win and retain retirement plan business. As the "plan quarterback", you can spend more time concentrating on those items that reflect your value; wealth management, rollovers, plan education and enrollment.
A section 3(38) fiduciary can protect both the plan sponsor and the Advisor/Broker.
|
| Hollis Lamon Lamon & Stern Atlanta, Georgia |
Contact Hollis Lamon of Lamon & Stern today for all your retirement planning needs! 770-951-8411
Thursday
Michelle Farmer - Lamon & Stern Investment Management Team
Michelle Farmer
Financial Principal at Lamon & Stern, Inc.
Atlanta, Georgia
(Greater Atlanta Area)
Investment Management
Michelle Farmer has been with Lamon and Stern or an affiliate for 23 years. She is a graduate of Kennesaw State University with a B.S. degree. Ms. Farmer is currently the financial principal at Lamon and Stern and holds the following securities licenses: Series 7, 27, 28 and 63. She is in charge of all financial aspects of the broker dealer. The Series 27 makes Ms. Farmer one of the few financial and operations (principals) of a $250,000 broker dealer in the Southeast. She has the responsibility of dealing with other financial principals at Lamon and Stern’s correspondent broker dealer networks. This allows Lamon and Stern the ability to handle a variety of financial options their clients may require.
She is an Atlanta native and has one daughter. She is the pianist at Austell Christian Church where she has been a member for many years.
.................................................................................................................................................................
LAMON AND STERN
We are a well known and accredited investment fiduciary with years of experience in the field of corporate retirement advisement and 401k planning, we provide qualified 401k fee comparisons for companies that are shopping around for the best rates.
PARTNERS
- Great West
- Iron Financial
- Principal
- Hartford
- Aspire
- Matrix
- Pension Financial Resources
- Thornburg Investment Management
- CLS Investments
- Nationwide Financial
- Nationwide On Your Side Retirement Planner
Wednesday
IRON Financial - Investment Selection Monitoring
CLASSES
Broad spectrum of different asset classes including fixed income and foreign and domestic equity funds, recognizing ranges of market capitalization and industry sectors.
SCREEN
Investments within each asset class that meet initial screening criteria are identified and reviewed for viability.
EVALUATE
Each portfolio and fund manager is evaluated against qualitative and quantitative methodologies.
SELECT
Investments that have demonstrated a discipline of performance history, style consistency, preservation and stewardship are selected.
MONITOR/REPLACE
Each is monitored and reviewed regularly, then replaced if their risk adjusted return falls out of the metrics that are detailed in the Investment Policy Statement.
Broad spectrum of different asset classes including fixed income and foreign and domestic equity funds, recognizing ranges of market capitalization and industry sectors.
SCREEN
Investments within each asset class that meet initial screening criteria are identified and reviewed for viability.
EVALUATE
Each portfolio and fund manager is evaluated against qualitative and quantitative methodologies.
SELECT
Investments that have demonstrated a discipline of performance history, style consistency, preservation and stewardship are selected.
MONITOR/REPLACE
Each is monitored and reviewed regularly, then replaced if their risk adjusted return falls out of the metrics that are detailed in the Investment Policy Statement.
|
| Hollis Lamon Lamon & Stern Atlanta, Georgia |
Contact Hollis Lamon of Lamon & Stern today for all your retirement planning needs! 770-951-8411
Friday
Michael J. Stern - Lamon & Stern Investment Management Team
Michael Stern
Vice President at Lamon & Stern, Inc.
Atlanta, Georgia
(Greater Atlanta Area)
Investment Management
Michael J. Stern joined Hollis M. Lamon in 1991 to form Lamon and Stern. Mr. Stern graduated with honors from Tulane University with a BA in 1974. He has the series 7, 24 and 63 securities licenses and oversees the correspondent brokerage relationships and all compliance and regulatory issues for the broker dealer. He has been and continues to be an arbitrator for FINRA, the Financial Industry Regulatory Authority. Mr. Stern is an industry arbitrator and serves on both customer and industry related dispute panels. He has acted as sole arbitrator on smaller disputes.
Mr. Stern handles soft dollars and in compliance issues set forth by the SEC and FINRA. He works with hedge funds and money managers to assist them in this arena. Mr. Stern also is a guest lecturer on "Being an Entrepreneur" at the University of Georgia in Athens.
Mr. Stern is also Vice President of Strategic Advisors, an affiliate registered investment advisor firm with Lamon and Stern.
He has been married to Merrill for 30 years and has twin daughters, Jenny and Lisa.
.................................................................................................................................................................
LAMON AND STERN
We are a well known and accredited investment fiduciary with years of experience in the field of corporate retirement advisement and 401k planning, we provide qualified 401k fee comparisons for companies that are shopping around for the best rates.
PARTNERS
- Great West
- Iron Financial
- Principal
- Hartford
- Aspire
- Matrix
- Pension Financial Resources
- Thornburg Investment Management
- CLS Investments
- Nationwide Financial
- Nationwide On Your Side Retirement Planner
IRON Financial - Co-Fiduciary Services Best Fits Both the Company and the Advisor's Needs
IRON Financial : Co-Fiduciary Services
An Independent Fiduciary
IRON is a truly and
completely independent fiduciary. We
receive no compensation from the mutual funds we select, and accordingly we
have no hidden agenda and do not "push" particular investments. This is in sharp contrast to many other
providers, who are compensated by the mutual funds they select for your
plan. IRON has, and always will,
consider this conflict of interest that does not allow for truly unbiased
advice. IRON is recognized by Barron's
magazine as a "Top 100 Independent Financial Advisor". (2007 – 2010)
IRON Financial's Co-Fiduciary Services Best Fits Both
the Company and the Advisor's Needs
With IRON, retirement plans can have a platform that meets the demands of the company and the employees.
IRON Added Value
- Independent investment selection, monitoring and replacement in accordance with the plan Investment Policy Statement
- Communication with the broker of record and plan sponsor from the point of sale forward
- Quarterly newsletter with educational materials and plan investment performance, if requested
Custodial Platform Value
- Index based Target Date and "Risk" based investments
- Fund window that allows participants to access all available mutual funds
- Self directed brokerage – employees can direct their own accounts as they see fit
- Web-based educational and fiduciary tools
- Quarterly and annual plan fiduciary reviews
- Complete transparency with fee disclosure
|
| Hollis Lamon Lamon & Stern Atlanta, Georgia |
Contact Hollis Lamon of Lamon & Stern today for all your retirement planning needs! 770-951-8411
Thursday
Hollis M. Lamon - Lamon & Stern Investment Management Team
Hollis Lamon
President at Lamon & Stern, Inc.
Atlanta, Georgia
(Greater Atlanta Area)
Investment Management
Hollis M. Lamon, AIF is the President of Lamon and Stern, a broker dealer based in Atlanta, Georgia specializing in institutional trading and execution for a variety of investment professionals. Lamon and Stern was founded in 1979. Lamon and Stern is one of the largest investment advisors to private companies’s throughout the Southeast and tailors different programs to meet the needs of their specific clients. They are aided greatly by their ability to utilize an open architecture program. Lamon and Stern works hand in hand with third party marketers and administrative firms. Mr. Lamon is a registered municipal principal, a registered options principal and a registered investment advisor.
Mr. Lamon is also President of Strategic Advisors, Inc., a registered investment advisor firm. He specializes in working with companies and their employees assisting them in preserving capital, increasing their income and advising them on investments to minimize risk. Hollis graduated from Mercer University with an emphasis in political science which led him to work as a tax aide for Senator Sam Nunn in Washington after graduating.
Hollis has been awarded the Accredited Investment Fiduciary Designation from the Center for Fiduciary Studies. The AIF designation responsibility signifies training in fiduciary responsibility. The course is followed by a rigorous examination. The center is associated with the Cap Center for Capital executive education program at the Joseph M. Katz graduate school. It teaches fiduciary standards of care and investment practices designed for trustees and investment professionals. He also maintains the Plan Sponsor Retirement Professional designation.
Hollis is involved in a multitude of civic endeavors including a new Atlanta Young Life initiative to aid students enrolled at inner city schools.
Mr. Lamon is a frequent speaker at employee benefits and estate planning seminars throughout the country and has served as a panel member at various pension conferences. Mr. Lamon is married to the former Jane Threlkeld of Atlanta, Georgia and has two sons, Hunter and Austin.
.................................................................................................................................................................
LAMON AND STERN
We are a well known and accredited investment fiduciary with years of experience in the field of corporate retirement advisement and 401k planning, we provide qualified 401k fee comparisons for companies that are shopping around for the best rates.
PARTNERS
Because of our stellar reputation in the field of financial forecasting Lamon and Stern has amassed an impressive list of partners, which include:
- Great West
- Iron Financial
- Principal
- Hartford
- Aspire
- Matrix
- Pension Financial Resources
- Thornburg Investment Management
- CLS Investments
- Nationwide Financial
- Nationwide On Your Side Retirement Planner
Retirement Plan Features and Highlights
 |
| The Plan is intended to help
you put aside money for your retirement |
Features and Highlights
WHAT IS ABC COMPANY'S PLAN YEAR?
The Plan Year is the consecutive twelve-month period beginning on 01/01 and ending on 12/31.
The Plan Year is the consecutive twelve-month period beginning on 01/01 and ending on 12/31.
WHO CAN PARTICIPATE?
Participation is open to
employees who have met the following requirements:
- Attained age 21.
- Completed 1 Year of Service, as defined by the Plan.
- Covered by a collective bargaining agreement.
- Leased employees.
- Non-resident aliens with no U.S. earned income.
Other requirements may also
have to be met, as described in the Summary Plan Description.
WHEN MAY I JOIN?
Eligible employees may join the Plan on the earlier of the first day of the Plan year, or the first day of the fourth, seventh or tenth month of the Plan year coinciding with or next following the date on which the eligibility requirements are met (quarterly).
HOW DO I CONTRIBUTE TO THE PLAN?
- Though payroll deduction, you can make elective deferrals up to the maximum allowed by law. The dollar limit is $15,500 for 2007.
- You can also
designate your elective deferrals to a Plan account that qualifies as a Roth
401(k) account. In 2007 you may
contribute as much as $15,500, in total, to your 401(k) accounts (Roth 401(k)
and pre-tax contributions), or the maximum allowed by your plan, whichever is
less. Roth 401(k) contributions will be
included in your taxable income.
Earnings on the Roth 401(k) contributions will accumulate tax free, and
retirement withdrawals may be exempt from federal income tax.
- You may make a
special elective salary deferral on any bonuses you receive up to 100% of any
bonus.
- If you have an existing qualified retirement plan (pre-tax), Roth 401(k), qualified retirement plan (after-tax), 403(b) tax deferred arrangement or governmental 457 plan with a prior employer, or hold a taxable IRA account, you may transfer or roll over that account into the Plan on becoming a participant in the Plan.
CAN I MAKE CATCH-UP CONTRIBUTIONS TO THE PLAN?
If you are age 50 or older
and make the maximum allowable deferral to your Plan, you are entitled to
contribute an additional "catch-up contribution". The catch-up contribution is intended to help
eligible employees make up for smaller contributions made earlier in their
careers. The maximum catch-up contribution
is $5,000 for 2007. See your Benefits
Administrator for more details.
CAN I STOP OR CHANGE MY CONTRIBUTIONS?
- You may stop your contributions anytime upon written notice to ABC Company. Once you discontinue contributions, you may only start again as provided under the terms of the Plan.
- You may increase
or decrease the amount of your contributions upon written notice to ABC
Company. The frequency of these changes
is determined by ABC Company. See your
Plan Administrator for more information.
HOW DOES ABC COMPANY CONTRIBUTE TO THE PLAN?
The Plan also provides for ABC Company to make contributions.
- ABC Company will make matching contributions equal to 5% of your eligible elective deferrals, up to 10% of compensation.
- The matching contribution will be made on both pre-tax contributions and Roth 401(k) contributions. Any match made on Roth 401(k) contributions and the earnings on that match will be subject to income tax upon withdrawal.
- The Plan also provides for discretionary matching contributions on eligible elective deferrals in an amount to be determined by ABC Company on an annual basis. The discretionary matching contribution will be made only on pre-tax contributions.
- ABC Company will make safe harbor matching contributions of 100% of the first 3% of compensation you contribute to the Plan and 50% of the next 2% of compensation you contribute to the Plan. Other limitations may apply.
The employer match on
eligible elective deferrals benefits eligible employees who are actively employed
on the last day of the Plan year and who have completed a year of service.
The employer discretionary match on eligible elective deferrals benefits all eligible employees and eligible employees who have worked 1,000 hour(s) during the Plan Year.
HOW DO I BECOME "VESTED" IN MY PLAN ACCOUNT?
Vesting refers to your
"ownership" of a benefit from the Plan. You are always 100% vested in your Plan
contributions and your rollover contributions, plus any earnings they generate. You are 100% vested in the "safe
harbor" contributions ABC Company makes on your behalf, plus any earnings
they generate. Other employer
contributions to the Plan, plus any earnings they generate, are vested as
follows:
Years of
|
Vesting
|
Service
|
Percentage
|
Less than 2
|
0%
|
2
|
20%
|
3
|
40%
|
4
|
60%
|
5
|
80%
|
6 or more
|
100%
|
All accounts are fully vested
at the Normal Retirement Age of 65.
WHEN CAN MONEY BE WITHDRAWN FROM MY PLAN ACCOUNT?
Money may be withdrawn from
your Plan account in these events:
- Retirement at the Plan's Normal Retirement Age of 65.
- Your attaining age 59½.
- Death.
- Disability.
- Termination of Employment.
To receive favorable tax
treatment, distributions of Roth 401(k) contributions must be made after you
reach age 59½ , or on account of your death or disability, and must be made at
least 5 years after the date your first Roth 401(k) contribution was made. See your Summary Plan Description for more
details about taking withdrawals from the Plan.
Be sure to talk with your tax advisor before withdrawing any money from
your Plan account.
MAY I WITHDRAW MONEY IN CASE OF FINANCIAL HARDSHIP?
MAY I WITHDRAW MONEY IN CASE OF FINANCIAL HARDSHIP?
If you have an immediate
financial need created by severe hardship and you lack other reasonably
available resources to meet that need, you may be eligible to receive a
hardship withdrawal from your account.
If you feel you are facing a financial hardship, you should see your
Benefits Administrator for more details.
MAY I BORROW MONEY FROM MY ACCOUNT?
The Plan is intended to help
you put aside money for your retirement.
However, ABC Company has included a Plan feature that lets you borrow
money from the Plan.
- The amount the Plan may loan to you is limited by rules under the tax law. In general, all loans will be limited to the lesser of one-half of your vested account balance or $50,000.
- The minimum loan amount is $1,000.
- All loans must generally be repaid within five years.
- You may have 2 loans outstanding at a time.
- Loans are permitted from all accounts.
Other requirements and limits
must be met, and certain fees may apply.
Refer to the Summary Plan Description for more details about this
participant loan feature.
HOW ARE PLAN CONTRIBUTIONS INVESTED?
You give investment
directions for your Plan account, selecting from investment choices provided
under the Plan, as determined by ABC Company.
- You may change your investment choices anytime.
- More information about your Plan's investment choices can be found elsewhere in these materials.
The Plan is intended to be an
ERISA Section 404(c) plan. This simply
means that you "exercise control" over some or all of the investments
in your Plan account. The fiduciaries of
the Plan may be relieved of liability, or responsibility, for any losses that
you may experience as a direct result of your investment decisions.
As a plan participant, you
may request certain information from Susan R. Sample, Trustee, 123 Main Street,
Anywhere, USA
12345, phone: 123-456-7890. This information includes: annual operating
expenses of the Plan investments; copies of prospectuses, financial statements,
reports, or other materials relating to Plan investments provided to the Plan;
a list of assets contained in each Plan investment portfolio; the value of
those assets and fund units or shares; and the past and current performance of
each Plan investment.
SUMMARY PLAN DESCRIPTION
The above highlights are only
a brief overview of the Plan's features and are not a legally binding
document. A more detailed Summary Plan
Description is available. Contact your
Benefits Administrator if you have any further questions.
|
| Hollis Lamon Lamon & Stern Atlanta, Georgia |
Contact Hollis Lamon of Lamon & Stern today for all your retirement planning needs! 770-951-8411
Saturday
Michael Stern is on LinkedIn
|
| VISIT ME ON LINKEDIN |
Vice President at Lamon & Stern, Inc.
Atlanta, Georgia (Greater Atlanta Area) | Investment Management
As the Vice President of Strategic Advisors, and an affiliate registered investment advisor within Lamon and Stern. For years Stern has assisted clients in corporate retirement investments and 401 k planning among many other financial and brokerage services the firm offers.
After graduating with honors from the Tulane University in 1974 Stern took his well earned BA and soon after obtained his series 7, series 24 and 63 securities licenses. In 1991, Michael J. Stern joined Hollis M. Lamon in establishing Lamon and Stern.
Visit Michael Stern at LinkedIn
Read more about the Lamon & Stern, Inc. Team
Wednesday
IRON Financial - Why IRON Financial for Co-Fiduciary Services?
 |
| IRON Financial : Help you win and retain retirement plan business |
IRON Financial's Co-Fiduciary Services Best Fits Both
the Company and the Advisor's Needs
With IRON, retirement plans can have a platform that meets the demands of the company and the employees.
- ERISA Section 3(38) Fiduciary retirement plan advisor
- Professional investment management expertise, experience and track record
- Investment philosophy and processes that serve the Fiduciary interests of qualified retirement Plan Sponsors
- Investment Policy Statement that reflects Plan Sponsor objectives and the interests of Participants
- Detailed quarterly fiduciary reporting at a plan level
- Independence; no conflicts of interest
- No usage of investment products that are proprietary or in which the Advisor has an interest
- Transparency of services, fees and value of client services
- Quantitative Research that supports investment philosophy, methodologies and processes
- Experienced and recognized Corporate Retirement Services and staff
- $1.4bn Assets Under Management
- Provides Investment Advisory Services to over 300 Retirement Plans
|
| Hollis Lamon Lamon & Stern Atlanta, Georgia |
Contact Hollis Lamon of Lamon & Stern today for all your retirement planning needs! 770-951-8411
Saturday
Michelle Farmer is on LinkedIn
|
| VISIT ME ON LINKEDIN |
Financial Principal at Lamon & Stern, Inc.
Atlanta, Georgia (Greater Atlanta Area) | Investment Management
Michelle Farmer graduated from Kennesaw State University with a BS degree and soon after earned her Series 7, 27, 28 and 63 security licenses. The series 27 license in particular was a welcome addition to the collection as it made her one of the few financial/operations (principals) of a $250,000 broker dealer in the Southeast.
Michelle has been with Lamon and Stern for 23 years and is the chief financial principal at Lamon and Stern, Inc.
Visit Michelle Farmer at LinkedIn
Read more about the Lamon & Stern, Inc. Team
Thursday
Nationwide: Successful Outcomes
 |
| Interactive Retirement Planner: Review your retirement plan account to see if you are on track to reach your goals |
It's a great time of the year
to review your retirement plan account to see if you are on track to reach your
goals. The Nationwide® On Your Side Interactive Retirement Planner can help you do just
that. It's an innovative resource,
created for employees like you. If you
need to adjust your strategy, the planner can help with that, too!
Try out the Interactive Retirement Planner Tool now.
In just 10 minutes you can:
- Set a retirement goal
- Track progress
- Get suggestions to improve retirement outlook
- Model different investment savings and retirement scenarios based on feedback from the planner
- Save a PDF file of the information to share with others
The Interactive Retirement Planner analyzes the information that is important to your overall retirement outlook:
- Age and time until retirement
- Estimated Social Security payments
- Defined benefit account (if applicable)
- Other retirement assets such as IRAs or retirement plans from former jobs
Check it out at: nationwide.com/retirementplans
Increase your contributions to the max
The Internal Revenue Service has announced higher maximum contribution limits for defined contribution plans for 2012. This means you'll be able to contribute more into your retirement plan accounts.
The Internal Revenue Service has announced higher maximum contribution limits for defined contribution plans for 2012. This means you'll be able to contribute more into your retirement plan accounts.
Beginning in January, you can
contribute as much as $17,000 per year to your retirement plan account. And if you are 50 or older, you could
contribute as much $22,500 with the age 50+ catch-up provision.
We know that for many people,
the maximum amount is not possible. But
consider increasing your contributions by just 1% of your salary this
year. A little can go a long way!
Uncle Sam gives tax incentives for retirement-plan
investing
The IRS can give you a tax credit up to $1,000, or $2,000 if filing jointly, just for contributing to your company's retirement plan. To receive a credit, you must earn less than $28,250 per year or $56,500 if you file jointly. It's called the Saver's Credit.
How do you become eligible?
- You must be at least 18 years old and not claimed as a dependent on someone else's tax return
- You cannot be a full-time student
- When calculating the credit, you must deduct the amount of any retirement plan or annuity distributions you received in the current tax year and in the previous two tax years from the contributions you have made
The individual's Adjusted Gross Income (AGI) must not
exceed the following 2011 limits:
Filing status
|
Your income
|
Rate of credit
|
Tax credit for a $2,000
contribution*
|
$34,000
or less
|
50%
|
$1,000
|
|
Married Filing
|
$34,001
- $36,500
|
20%
|
$400
|
Jointly
|
$36,501
- $56,500
|
10%
|
$200
|
more
than $56,500
|
0%
|
$0
|
|
$25,500
or less
|
50%
|
$1,000
|
|
Head of
|
$25,501
- $27,375
|
20%
|
$400
|
Household
|
$27,375
- $42,375
|
10%
|
$200
|
more
than $42,375
|
0%
|
$0
|
|
$17,000
or less
|
50%
|
$1,000
|
|
Other Filers
|
$17,001
- $18,250
|
20%
|
$400
|
$18,251
- $28,250
|
10%
|
$200
|
|
more
than $28,250
|
0%
|
$0
|
*Married couples filing
jointly may apply up to $4,000 for a maximum $2,000 credit.
Here's an example of how it works:
Consider a married couple who make $30,000 a year and contributed $3,000 toward a retirement account. They could get a tax credit of $1,500. (They make less than $34,000, making them eligible to receive the full tax credit of 50% of their contribution. If they had contributed $4,000, they could get a $2,000 tax credit.) If you're eligible to claim a Saver's Credit on your 2011 federal income tax return, consider how much more you may be able to contribute if you plan to claim the credit on your tax return next year!
Nationwide
On
Your Side
|
| Hollis Lamon Lamon & Stern Atlanta, Georgia |
Contact Hollis Lamon of Lamon & Stern today for all your retirement planning needs! 770-951-8411
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