Retirement Plans

Regardless of your age, there is a great deal you can do to ensure your financial security in retirement. The key is to take charge of your retirement planning and start as soon as possible.

You may also want to visit Catholic Knights’ retirement calculator to determine how much monthly income your current retirement savings could provide you. Start the retirement planning process by contacting your Catholic Knights financial services representative now for a free needs analysis.

Below is basic information about some common retirement planning options.

Traditional IRA*

A traditional IRA is a personal savings plan that gives you tax advantages for setting aside money for retirement.

• Contributions you make to a traditional IRA may be fully or partially deductible, depending on your circumstances and
• Generally, amounts in your traditional IRA (including earnings and gains) are not taxed until distributed.

Simplified Employee Pensions (SEPs)*

Created with the small business owner in mind, SEPs allow employers to set up IRAs for themselves and their employees. Since the business owner can decide how much to contribute each year, this type of plan is often the answer for businesses that may want to adjust their contribution based on the health of the business.

• The employer contributes a percentage of each employee's salary each year, up to a fixed maximum
• SEPs have low administrative costs
• Can even be started by those who are self-employed

Simple IRA*

This option for companies with 100 or fewer employees allows an employee to contribute a percentage of his or her salary up to a fixed maximum to an Individual Retirement Account (IRA).

• The employer may also make contributions on a fixed or matching basis
• Easy to set up
• Require minimal paperwork
• Low administrative costs
• Employees retain their SIMPLE account even if they change jobs

Roth IRA*

• * Unlike a traditional IRA, you cannot deduct contributions to a Roth IRA
• * Qualified distributions are tax free
• * Contributions can be made to your Roth IRA after you reach age 70 ½
• * You can leave amounts in your Roth IRA as long as you live.

403(b) TSA*

• Retirement plan offered by public schools and certain tax-exempt organizations
• Only can be obtained under an employer’s TSA plan
• Generally funded by elective deferrals made under salary reduction agreements and non-elective employer contributions

 *These plans are subject to the annual contribution limits established by the IRS. This content is not intended to offer legal advice. Individuals should seek tax or legal consultation before proceeding to purchase.