Planning in advance for your retirement funds is a very important decision and is also essential to ensure that you have a secure and balanced future, even after you’ve quit your job. This gives you the liberty to relax and enjoy your off days without having to worry about providing for yourself. There are a number of retirement plans available, and the earlier one starts, the better their position post-retirement.
One can choose between traditional 401K plans and Roth IRAs, depending on the income slab that they come under. The income slab also determines how much is the maximum contribution that you can make to your preferred retirement scheme. There are different options under which one can convert their existing IRAs to Roth IRAs under special terms and conditions. While some plans are taxed are regular income tax withdrawals, some plans give the policyholder the benefit of being free from taxation. Even income from social security can come under taxation during retirement, depending on the amount of withdrawal from the existing retirement plan. A calculator will help you decide exactly which policy would be best suited for you and how you can draw maximum benefits from it.
To analyze your retirement options between 401Ks and Roth IRAs or understand your Social Security implications, check out the following calculators.