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Retirement Plans



It is never too early to begin planning for your retirement or evaluate how you're progressing. Your M3 financial advisor can help answer your questions regarding the nuances of your retirement plan and how to maximize its potential to help achieve your financial goals.

Our advisors have expansive experience in various retirement plans and are ready to help you evaluate how yours is working for you. 

  • Are you on the right track? 
  • How will Social Security and your retirement savings work together?
  • Do you understand your pension plan? 
  • What are the best strategies for your situation?

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401a Gov

If you work for a governmental agency, your employer may have adopted a §401(a) defined contribution plan for your benefit. As a plan participant, tax-deferred contributions may be made by your employer for your benefit, either on a matching basis with your contributions to the employer's §403(b) and/or §457(b) plan(s), or on a non-elective basis. 


403(b)/ROTH 403(b)

If you are employed by an educational institution, hospital or certain other not-for-profit organizations, you may have the opportunity to invest in a tax-advantaged retirement program known as a 403(b) plan. By making regular contributions to a 403(b)/TSA account, you have a convenient means which may enhance your retirement savings as you work towards building your financial future.


457(b)

Traditional governmental §457(b) plans are tax-advantaged deferred compensation arrangements designed for employees of public educational institutions and governmental agencies. By regularly deferring a portion of your compensation to a §457(b) account, you have a convenient means which may lower your current taxable income while you work toward building your financial future.


457(b) Non Gov

If you are a highly compensated top decision-maker in a non-governmental tax exempt organization, you may have access to this retirement savings opportunity. A §457(b) Deferred Compensation Top Hat plan provides top executives with a means to supplement their retirement savings on a tax-deferred basis. As a plan participant, you may fund your account with pre-tax payroll deductions and/or contributions may be made by your employer.

457(f) Top Hat

If you are a highly compensated top decision-maker in a tax exempt organization, you may have access to this retirement savings opportunity. A §457(f) Deferred Compensation Top Hat Plan provides top executives with a means to supplement their retirement savings. As a plan participant, you may fund your account with pre-tax payroll deductions and/or tax-deferred contributions may be made by your employer for your benefit.

Corporate 401(k) Roth

Many employees have the opportunity to invest in a tax-advantaged retirement program known as a §401(k) plan. By making regular contributions to a §401(k) account, you have a convenient means which may enhance your retirement savings as you work toward building your financial future.

Roth IRA

Roth IRAs are tax-advantaged retirement savings vehicles for individual investors. Anyone of any age who has earned income (or the non-working spouse of such an individual) can make a Roth IRA contribution provided their income does not exceed certain limits.

Personal 401(k) Roth

Personal §401(k)s plans were designed to provide self-employed individuals and their spouses who work in the business with the opportunity to invest in a tax-advantaged retirement program. The plan is available to sole proprietors and partnerships that do not have any common law (non-spousal) employees, including C Corporations, S Corporations and sole proprietorships. By making regular contributions to a Personal §401(k) account, you have a convenient means which may enhance your retirement savings as you work toward building your financial future.

SARSEP IRA

Salary Reduction SEPs were replaced by SIMPLE IRAs when Congress enacted the Small Business Job Protection Act of 1996; therefore, new SARSEPs can no longer be adopted. However, any employer that had a SARSEP in place prior to 1996 can maintain its SARSEP if the employer still has fewer than 25 employees. Also, each year at least 50% of the eligible employees must choose to make elective deferrals. If fewer than 50% participate, all elective deferrals made by any employee are “disallowed.”


SEP IRA

SEP is an acronym for Simplified Employee Pension. Since their introduction in 1978, SEPs have gained tremendous popularity, particularly as a plan for sole proprietors. This is due to the fact that the only contributions allowed under a SEP IRA are employer contributions. Employer SEP contributions are deposited into an employee's Traditional IRA account. 


SIMPLE IRA

SIMPLE IRAs were introduced by the Small Business Job Protection Act of 1996. They first became effective in 1997, replacing the SARSEP plan. A SIMPLE IRA can be adopted by an employer with under 100 employees as long as no other retirement plan is maintained in the same calendar year (other than one for a union, which is subject to a collective bargaining agreement).


Traditional IRA/Rollover IRA

Traditional IRAs are tax-deferred retirement savings vehicles for individual investors. Anyone under the age of 70½ who has earned income (or the non-working spouse of such an individual) can make a Traditional IRA contribution. The only question is whether or not the contribution can be deducted. This hinges on whether the individual is an active participant in an employer-sponsored retirement plan or not and if the investor is under certain income limits.


For 403b/TSA accounts, withdrawals are taxed as ordinary income in the year received. Tax penalties and penalties for early withdrawal may apply if funds are withdrawn prior to age 59 ½.
A 457(b) plan is not subject to the age 59 1/2 withdrawal rule. This means there is no 10% penalty for early withdrawal at retirement or upon termination of employment. Note: This benefit applies only to public (governmental) plans. Private plan participants generally will pay federal income taxes when funds are made available to them. They may, however, defer receiving funds and instead be taxed when they actually take a distribution. While a 457(b) top hat plan is very similar to a 457(b) plan adopted by a governmental employer, there are a few distinct differences: There is no age 50+ catch up option; Rollovers are not permitted; and Assets are not protected from the creditors of the employer (NOT set aside in a trust, an annuity contract or a custodial account as required for governmental 457(b) plans).
An individual retirement account (IRA) allows individuals to direct pretax income, up to specific annual limits, toward investments that can grow tax-deferred (no capital gains or dividend income is taxed). Individual taxpayers are allowed to contribute 100% of compensation up to a specified maximum dollar amount to their Traditional IRA. Contributions to the Traditional IRA may be tax-deductible depending on the taxpayer's income, tax-filing status and other factors. Taxes must be paid upon withdrawal of any deducted contributions plus earnings and on the earnings from your non-deducted contributions. None of the information in this document should be considered tax or legal advice. Please consult with your legal or tax advisor for more information concerning your individual situation.
Contributions to a Roth IRA are not tax deductible and there is no mandatory distribution age. All earnings and principal are tax free if rules and regulations are followed. Principal contributions can be withdrawn any time without penalty (subject to some minimal conditions).
Prior to rolling over assets from an employer-sponsored retirement plan into an IRA, it's important that you understand your options and do a full comparison on the differences in the guarantees and protections offered by each respective type of account as well as the differences in liquidity/loans, types of investments, fees and any potential penalties.