401(k) Enrollment Meeting May 2014 The information contained in - - PowerPoint PPT Presentation
401(k) Enrollment Meeting May 2014 The information contained in this document is privileged and confidential and is protected from disclosure. Dissemination, distribution or copy of this communication without the express permission of Warren
The information contained in this document is privileged and confidential and is protected from disclosure. Dissemination, distribution or copy of this communication without the express permission of Warren Averett is strictly prohibited.
May 2014
The information contained in this document is privileged and confidential and is protected from disclosure. Dissemination, distribution or copy of this communication without the express permission of Warren Averett is strictly prohibited.
Top 30 CPA firms in the US
advisement
designations such as CPA, CFP, CIMA, CRPC, CFA, and AIF
product/service
The information contained in this document is privileged and confidential and is protected from disclosure. Dissemination, distribution or copy of this communication without the express permission of Warren Averett is strictly prohibited.
* To get a better idea of your estimated Social Security benefit, go to www.ssa.gov or call 1-800-772-1213.
The information contained in this document is privileged and confidential and is protected from disclosure. Dissemination, distribution or copy of this communication without the express permission of Warren Averett is strictly prohibited.
Source: AON 2008 Retirement Income Replacement Ratio Study
The information contained in this document is privileged and confidential and is protected from disclosure. Dissemination, distribution or copy of this communication without the express permission of Warren Averett is strictly prohibited.
The information contained in this document is privileged and confidential and is protected from disclosure. Dissemination, distribution or copy of this communication without the express permission of Warren Averett is strictly prohibited.
Salary of $30,000 401(k) savings After tax savings Paycheck
$ 1,250.00 $ 1,250.00
401(k) (5%)
(62.50)
Taxes (20%)
(237.50) (250.00)
Net
950.00 1,000.00
Retirement Account
62.50 0.00
Company Contribution
12.50 0.00
Total to 401(k) Account
$ 75.00 $ 0.00
The information contained in this document is privileged and confidential and is protected from disclosure. Dissemination, distribution or copy of this communication without the express permission of Warren Averett is strictly prohibited.
$96,000 $644,216 $72,000 $281,710 $48,000 $113,800
$96,000 $1,110,070 $72,000 $412,568 $48,000 $143,652
$96,000 $1,940,204 $72,000 $610,402 $48,000 $182,242
Total amount contributed ($200/month) Account balance at retirement
Rate of Return Beginning Age
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$0 $50,000 $100,000 $150,000 $200,000 $250,000 $300,000 35 40 45 50 55 60 65
Account Value
Total Steady Deferral Total Inc. Deferral
At age 65 increasing deferrals by 1% from 5% until you reach 10% equates to $244,254 compared to $134,834 if you stay at 5%.
Assuming a $30,000 salary, hypothetical return of 6% and a 5% deferral rate increasing by 1% from years 1-5 until reaching 10% contribution rate.
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Joint Filers' Adjusted Gross Income (AGI) Head of Household Filers' AGI Other Filers' AGI Saver’s Credit (as a % of Contribution) Maximum Credit $0-$36,000 $0-$27,000 $0-$18,000 50% $1,000 $36,601-$39,000 $27,001-$29,250 $18,001-$19,500 20% $400 $39,001-$60,000 $29,251-$45,000 $19,501-$30,000 10% $200 Over $60,000 Over $45,000 Over $30,000 0% $0
For 2014, if your adjusted gross income is less than $60,000 (filing jointly) or $30,000 (filing single) and you contribute to the 401(k) Plan, you can take a tax credit when you file your taxes next year. This is FREE money the government is giving back to you!
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– Aggressive Growth – Growth – Moderate – Conservative – Ultra-Conservative
– Stock, Bonds, Stable Value, Real Estate, TIPS
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*
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– Vanguard Equity Income – Vanguard Growth Index – Vanguard Mid Cap Value Index – Vanguard Mid Cap Growth Index – Vulcan Small Cap Value – Legg Mason ClearBridge Small Cap Growth – Dodge & Cox International – First Eagle Overseas – Lazard Emerging Markets Multi-Strategy
–
– DFA Micro Cap* – PIMCO Real Return – AQR Managed Futures* – Merger Fund* – Calamos Mkt Neutral* – SteelPath MLPs* – Robeco Partners Long/Short Research* – PIMCO Commodity *
– Federated High Yield Bond – Loomis Sayles Bond – Pioneer Strategic Income – Vanguard Total Bond Index – DoubleLine Total Return* – PIMCO Total Return – Stable Value – JP Morgan Strategic Income*
* Investments only available through the model portfolios.
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– 12-months of service – Age 21 or older
– 12-months of service – Age 21 or older
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– Pre-tax 401k contributions – After-tax Roth contributions
– Additional catch-up contribution of $5,500 if age 50 or older
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– Company will contribute amount equal to 100% of the first 1%
– Subject to years of service vesting schedule
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– Minimum account balance of $1,000 – Must start taking Required Minimum Distributions (RMDs) the year you turn 70 ½
– No taxes or penalties
– Mandatory 20% withholding for Federal Income Tax – Subject to a 10% early withdrawal penalty if under age 59 ½
The information contained in this document is privileged and confidential and is protected from disclosure. Dissemination, distribution or copy of this communication without the express permission of Warren Averett is strictly prohibited.
The information contained in this document is privileged and confidential and is protected from disclosure. Dissemination, distribution or copy of this communication without the express permission of Warren Averett is strictly prohibited.
The information contained in this document is privileged and confidential and is protected from disclosure. Dissemination, distribution or copy of this communication without the express permission of Warren Averett is strictly prohibited.
The information contained in this document is privileged and confidential and is protected from disclosure. Dissemination, distribution or copy of this communication without the express permission of Warren Averett is strictly prohibited.
The information contained in this document is privileged and confidential and is protected from disclosure. Dissemination, distribution or copy of this communication without the express permission of Warren Averett is strictly prohibited.
The information contained in this document is privileged and confidential and is protected from disclosure. Dissemination, distribution or copy of this communication without the express permission of Warren Averett is strictly prohibited.