401K and IRA

McFolling Financial Group delivers a full share of smart retirement solutions for 401(K) retirement plans. Employers appreciate McFolling Financial Group’s effective and simple ways to help meet employee’s retirement needs with flexible and cost effective solutions.

Additional description of 401k products sold go here. 

When people talk about 401(K) plans, you often hear about advantages like:

1) Free money from your employer
2) The opportunity to retire and not have to worry about money anymore
3) Savings and earnings that accumulate without you having to remember to make deposits
4) A lower taxable income

This probably sounds like a dream, right? Well, it definitely isn't! It's what you can gain from investing in your company's 401(K) plan. The 401(K) is one of the most popular retirement plans around!

I’m sure that retirement plans may be the farthest thing from your mind at this time, but just think about how much of a difference 10 years can make in the investing world. If your employer offers you a 401(K) plan, it makes the most sense to participate in it as soon as possible. If you start somewhere around the age of 25, it is very likely that you can have a million or more in your account by the time that you retire!

401(K) plans are also known as contribution plans which are part of retirement plans. Profit sharing plans, Simple IRAs and IRAs, money purchase plans, and SEPs are other contribution plans. Since the amount that is contributed is defined either by the employee or the employer, they are called "defined contribution plans.


Traditional IRAs:

1) Contributions to traditional IRAs lower your taxable income in the contribution year. That lowers your adjusted gross income, helping you qualify for other tax incentives you wouldn’t typically get. These would include the child tax credit or the student loan interest deduction.

2) Up to $10,000 can be withdrawn without the normal 10% early-withdrawal penalty to pay for qualified first-time homebuyer expenses. Nonetheless, you’ll have to pay taxes on the distribution.

Roth IRAs:

1) Even before age 59 ½, Roth contributions, but not earnings, can be withdrawn tax and penalty free at any time.

2) You can withdraw up to $10,000 of Roth earnings penalty free to pay for qualified first time homebuyer expenses five tax years after the first contribution.


1) Build smart plan designs for every IRA type. ( Traditional, Roth, Simple, SEP, Payroll Deduction, Rollover, and Auto Rollover )

2) Streamline automated processes to save time and to concentrate on the tasks that turn into dollars.

3) Lead both participants and consumers to make ALL the right investment choices.

McFolling Financial Group delivers a full amount of smart retirement solutions for Individual Retirement Accounts (IRAs) including:

1) Traditional IRA – A Traditional IRA allows individuals to direct pre-tax income, up to specific annual limits, toward investments that can grow tax-deferred. Distributions are taxed. Individual taxpayers are allowed to contribute 100% of compensation up to a specific maximum dollar amount to their Traditional IRA. Contributions to the Traditional IRA may be tax deductible depending on the tax filing status, taxpayer’s income, and other factors.

2) SIMPLE IRA – A SIMPLE IRA is a retirement plan that can be used by most small businesses that have less than 100 employees. SIMPLE stands for “Savings Investment Match Plan for Employees.” The employees must earn at least $5.000 the prior year and may not have another retirement program. Employers can choose to make a mandatory 2% retirement account contribution to all of their employees or an optional matching contribution of up to 3%. In 2013, employees can provide up to $12,000 annually. Start up and maintenance fees are low and employers also get a tax deduction for contributions that they make for their employees.

3) Auto Rollover IRA – An Auto Rollover IRA is designed to be used for forced distributions to IRAs from qualified plans. The IRA must meet the Department of Labor’s safe harbor requirements.

4) Payroll Deduction IRA – A Payroll Deduction IRA is a contribution plan where an employer deducts certain amount from an employee’s pay and puts the funds toward insurance, an investment account, or healthcare. For the most part, employees can get into payroll deduction plans on a voluntary basis. Employee only contribution program available to businesses of any size. This plan offers employees a convenient way to automatically contribute income toward an ongoing expense or investment.

5) SEP IRA – A SEP IRA, also known as, Simplified Employee Pension plan, allows employers to make a tax-deductible contribution on behalf of employees that are eligible. Employees DO NOT pay taxes on SEP contributions. Distributions are subject to tax withholding rules.

6) Roth IRA – A Roth IRA is an individual retirement plan that is very similar to the Traditional IRA. However, contributions are not tax deductible and distributions that are qualified are tax free. Distributions that are not qualified may suffer a penalty. Some people may argue that a Roth IRA may have more advantages than a Traditional IRA, since qualified distributions from a Roth IRA are always tax free.

7) Rollover IRA – A Rollover IRA is a transfer of funds from a qualified retirement account into a Traditional IRA or Roth IRA. This can occur by a check or through a direct transfer, where the custodian of the distributing account writes to the account holder and they then deposit it into another IRA account. Most rollovers will occur at the time of a job change in order to move the 401(K) or 403(b) assets into an IRA.