Retirement Planning

With Access to over 4,000 mutual funds, we’ll help sort everything out.

At Kim Stanley Insurance & Financial Services, Inc., while we cannot render investment advisory services, we can develop and implement a program for you to help you meet your specific goals and objectives. Through our broker/dealer, O.N. Equity Sales Company you have access to over 4,000 mutual funds!

529 College Savings Account

A 529 College Savings Account is a tax advantaged way to save for higher education. Investments accumulate on a tax free basis and can be withdrawn without tax penalty to pay for higher education. The parent or custodian maintains control of the account. Unlike traditional custodian accounts (UGMA/UTMA), the minor does not obtain rights to the assets of a 529 college savings account once they reach their age of majority. 529 plans do not provide a guaranteed rate of return. The risk with a 529 Plan is that the investments may not perform well enough to cover the rising cost of college. Always consider the investment objectives, risks, charges and expenses of the underlying investment carefully before investing.

Annuities

A variable annuity is a long-term investment vehicle designed to accumulate money on a tax-deferred basis for retirement purposes. It allows you to allocate your investment among a number of investment options for diversification opportunities. It can perform as a supplemental personal retirement account that brings together a combination of managed investments and insurance while providing for tax deferred growth potential until withdrawn. Annuity contracts can also offer unique features such as a degree of principal protection through income options, enhanced death benefit and estate enhancement benefits that can be customized to meet your needs. An annuity can also provide the opportunity for lifetime income upon annuitization.

Early withdrawal of surrenders may be subject to surrender charges. Distributions and withdrawals may also be subject to ordinary income tax and, if taken prior to age 59 1/2, a 10 percent federal tax penalty may apply. You should consult your personal tax adviser on all tax matters. Withdrawals may reduce the death benefit; cash surrender value and any living benefit amount. Any guarantees are based upon the claims-paying ability of the issuing insurance company. Guarantees do not apply to the investment performance or account value of the underlying investment options; investment values will fluctuate with changes in market conditions.
Variable annuities are sold only by prospectuses, which contain more complete information including fees, surrender charges and other costs that may apply. Investors should consider that investment objectives, strategies, risk factors, charges and expenses of the underlying investment options carefully before investing. The fund prospectus will contain this and other information about the underlying investment option. Call me to obtain current prospectuses. Please read the product and fund prospectuses carefully before you invest or send money.

IRA/SEP/ROTH

ON Equity Sales Company offers a variety of qualified accounts. A Traditional IRA is established and funded by individual contributions that include transfers or rollovers from another financial institution. Contributions and earnings accumulate on a tax‐deferred basis until withdrawn. Taxes will be due upon distribution, and if taken prior to age 59 ½, may be subject to an additional 10% federal tax penalty.

A ROTH IRA is funded with after tax dollars. In other words, contributions are not tax deductible like those of a Traditional IRA. However, the principal and earnings can be withdrawn 100% tax free after retirement, subject to certain requirements.

There are income limits that may apply to the amount you can contribute on an annual bases to this type of account.

A SEP IRA is a plan that lets you make contributions to an IRA on behalf of you and your employees. It is for the small business owner. Contributions and earnings accumulate on a tax deferred basis until withdrawn. Taxes will be due upon distribution and if taken prior to 59 ½, may be subject to an additional 10% federal tax penalty.

Maximum IRA Contributions for 2011

Any worker up to age 70 ½, can make a regular IRA contribution – no questions asked. Your ability to deduct that contribution, however, is based on ever-changing annual limits.
Ironically, things are simpler if you do not have a workplace retirement plan, such as a 401(k) or 403(b). If so, your regular IRA contributions are fully tax deductible regardless of income. Keep in mind the amount of the limits can change each year based on inflation, so note the 2011 IRA contribution limits.
If you are covered by a retirement plan at work, you might be eligible to make a tax-deductible IRA contribution, depending on your modified adjusted gross income (MAGI).

2011 Deductible IRA Income Limits for Singles

If you are single individual eligible to participate in a workplace retirement plan, the deductibility of your IRA contribution begins to phase out at $56,000 MAGI in 2011. Deductibility disappears entirely for covered-at-work singles at $66,000. The income levels for a 2011 IRA deduction limits are the same for singles as they were in 2010.

2011 Deductible IRA Income Limits for Married Couples

For joint-filers, the phase-out starts at $90,000 of MAGI. Should you make $110,000 or more, your IRA contribution deduction disappears completely. Both the top and the bottom of the phase-out range increased by a $1,000 over 2010’s levels.

Spousal IRA

Frustrated? If you are eligible to participate in a retirement plan at work but your spouse isn’t, don’t give up yet.
A spouse without a workplace retirement plan can make a tax-deductible contribution as long as the couple’s joint income is below $169,000 in 2011, up $2,000 from 2010. The deductible amount phases out completely at $179,000, also up $2,000 from 2010.
Keep in mind: a spousal IRA contribution can be made even if the spouse does not earn an income himself/herself.

IRA Contribution Amounts and Deadlines

Year Maximum Contribution(if under age 50) Maximum Contribution(if over age 50) Contribution Deadline
2011 $5,000 $6,000 ($1,000 catch up) 4/15/2011
2012 indexed to inflation indexed to inflation 4/15/2012

 

Coverdell ESA Contribution Amounts and Deadlines

Year Maximum Contribution Contribution Deadline
2011 $2,000 4/15/2011
2012 $2,000 4/15/2012

 

SEP IRA/Profit Sharing/Money Purchase Contribution Amounts and Deadlines

Year Maximum Contribution – 25% of inclome Contribution Deadline
2011 $46,000 10/15/2009
2012 $48,000 10/15/2010

 

SIMPLE IRA Contribution Amounts and Deadlines

Year Maximum Contribution(if under age 50) Maximum Contribution(if over age 50) Contribution Deadline
2011 $11,500 $13,000 10/15/2009
2012 indexed to inflation indexed to inflation 10/15/2010

 

INDIVIDUAL 401(K) Contribution Amounts and Deadlines (Employer Limits)

Year Maximum Contribution(if under age 50) Maximum Contribution(if over age 50) Contribution Deadline
2011 $46,000 $51,000 10/15/2009
2012 $48,000 $53,000 10/15/2010

 

For 2008 IRA contributions, checks must be postmarked by April 15, 2009.

If you are contributing funds from an account or transferring funds from an external bank account, your transaction must be completed by 11:59 p.m. ET on April 15, 2012.

2004-2005*

4 years Public School – $45,000

4 years Private School -$110,000

2022-2023*

4 years Public School -$114,101

4 years Private School -$285,418

*source:
http://secloan.com/

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A qualified plan or IRA may be a great tax break for you – now, while you’re alive. But after
you are gone, so is the break. Excise tax, Estate Tax, Income Taxes can deplete over 60% of
your tax‐deferred savings, leaving little to provide for those you love. We can help you & your advisors design strategies to preserve more for your family – and less for the IRS!

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