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401K Georgia

While a 401(k) plan isn't a magic guarantee that if you participate you will be able to retire in Tahiti at age 55, it can be a major part, perhaps even the most important part, of your retirement planning strategy. For many people in Georgia, especially those who do not own homes, their 401(k)'s can be their biggest assets.
1. Local Companies
2. The Tax Reform Act
3. Your 401(k) Plan is Tax-Deferred
4. Your 401(k) Plan Can Protect You
5. Featured Local Company

1. Local Companies

UBS Financial Services Inc
678.441.1041
600 Northpark
Atlanta, GA
Smith Myra C CPA
(770) 267-5808
Monroe, GA
3M
(770) 394-8800
100 Ashford Ctr N Ste 200
Atlanta, GA
Financial Control
(770) 535-9002
3705 Silver Brook Ln
Gainesville, GA
Pippin Raymond A Jr CPA
(478) 474-1079
212 Old Club Ct
MacOn, GA
Choice Checks
(478) 628-3445
1063 Brooks McNeal Rd
Gordon, GA
Name Acct
(678) 368-4975
5900 Windward Pkwy
Alpharetta, GA
Accounting & Tax Specialists
(404) 377-6633
315 W Ponce De Leon Ave
Decatur, GA
Brogdon P Lisa Company Inc
(770) 945-6433
3192 Camens Way
Buford, GA
Friedrich Darrin CPA
(404) 898-8241
5565 Glenridge Connector
Atlanta, GA


2. The Tax Reform Act

401 plans were first authorized by a section of The Tax Reform Act that Congress passed in 1978. It took several more years until the actual regulations were put into place. So beginning in 1982, taxpayers were able to begin making contributions to their plans for the first time. It wasn’t until 1991, however, that the final regulations were published.

The name of the program comes from the place where it is listed in the Internal Revenue Service tax code: section 401, paragraph (k).

Not every employee in Georgia is eligible; those who work for tax-exempt organization, such as churches, public schools, or hospitals cannot participate. But for these employers, there are similar 403(b) plans available.

But the basic idea of each plan is the same: your employer deducts a certain percentage of your gross earnings from each paycheck and puts it into a retirement plan for you. Its all done automatically, with the amount deducted reported to you on each paycheck stub.

3. Your 401(k) Plan is Tax-Deferred

Your automatic deductions are done on a pre-tax basis. This doesn’t mean that they are “tax free,” it just means that you don’t pay taxes on these amounts until, ideally, you are at least 59 and ½ years old, you retire, and you start to receive distributions from your plan. (There are certain instances in which you can receive distributions from your plan before you are 59 and ½ years old, but you generally want to do this unless you have to.)

The tax-deferred contributions are invested in securities or stocks and are then allowed to grow until they are withdrawn when the participant retires. Unlike regular stock market investments, you are not faced with paying capital gains taxes when your 401k investments increase in value.

What does this mean right now, when you are making contributions to your plan? It means that your employer is reporting a lower adjusted gross income to your employer. Although you’re still making the same amount of money, according to the IRS, you’re making a smaller amount of taxable income and your tax liability is lowered. This reduces the amount of taxes you must pay at the end of the year.

For example, suppose that you receive a paycheck for $1,000. If you put $50 of that amount into a 401 k plan, your taxable income is only $950.

This is often considered one of the major benefits of a 401(k) plan. If you contribute enough to the plan, you might even put yourself into a lower tax bracket. In addition, because certain IRS credits, such as child tax credits, depend on a worker’s adjusted gross income, you may even lower your taxable income enough to be eligible for additional credits, while saving for retirement at the same time.

Because you lower your adjusted gross income when you contribute to a 401(k) plan, you also lower the amount of state taxes you must pay (if your state has a state income tax).

Of course you have to pay taxes on this income when you retire. But since incomes often drop when people retire, you may be in a lower income bracket by then and pay less in taxes.

4. Your 401(k) Plan Can Protect You

With pension plans from employers now a rarity, the 401k-retirement savings plan may well be the main source of retirement income for many people in Georgia. Utilize your human resources department to make sure you know what is available to you for retirement options, and that you understand your available benefits. Don’t wait for them to come to you, because they probably won’t.

Few middle- and low-income people are able to buy significant amounts of stocks and bonds on their own; most don’t have a broker. Few will have Certificates of Deposits or large amounts of savings. Few in this category are able to put money into 402 plans, or even understand how to utilize them.

Of course, there are always Social Security payments. But if you rely exclusively on that, you’re very likely to be disappointed. Social Security payments can be as low as several hundred per month. And unless the government radically changes the rules in the future, you’re not likely to receive more than a few thousand dollars a month from Social Security payments, regardless of how much you earned during your lifetime.

If you have to live on Social Security alone, that could represent a radical drop from your pre-retirement income. You don’t want to go from a middle-class lifestyle to poverty. Many of us dream that we’ll be better off after we retire; few of us realize that without careful planning things could be worse.

5. Featured Local Company

UBS Financial Services Inc

678.441.1041
600 Northpark
Atlanta, GA
ubs.com

Read more about 401K

Regional Articles
- 401K Acworth GA
- 401K Adairsville GA
- 401K Albany GA
- 401K Alpharetta GA
- 401K Americus GA
- 401K Athens GA
- 401K Atlanta GA
- 401K Auburn GA
- 401K Augusta GA
- 401K Austell GA
- 401K Barnesville GA
- 401K Baxley GA
- 401K Blackshear GA
- 401K Blairsville GA
- 401K Bremen GA
- 401K Brunswick GA
- 401K Buford GA
- 401K Byron GA
- 401K Calhoun GA
- 401K Canton GA
- 401K Carrollton GA
- 401K Cartersville GA
- 401K Cedartown GA
- 401K Chatsworth GA
- 401K Chickamauga GA
- 401K Clarkesville GA
- 401K Clarkston GA
- 401K Cleveland GA
- 401K Cochran GA
- 401K Columbus GA
- 401K Commerce GA
- 401K Conyers GA
- 401K Cordele GA
- 401K Cornelia GA
- 401K Covington GA
- 401K Cumming GA
- 401K Dacula GA
- 401K Dahlonega GA
- 401K Dallas GA
- 401K Dalton GA
- 401K Dawsonville GA
- 401K Decatur GA
- 401K Douglas GA
- 401K Douglasville GA
- 401K Dublin GA
- 401K Duluth GA
- 401K Eastman GA
- 401K Eatonton GA
- 401K Elberton GA
- 401K Ellenwood GA
- 401K Ellijay GA
- 401K Evans GA
- 401K Fairburn GA
- 401K Fayetteville GA
- 401K Fitzgerald GA
- 401K Flowery Branch GA
- 401K Forest Park GA
- 401K Forsyth GA
- 401K Fort Benning GA
- 401K Fort Stewart GA
- 401K Fort Valley GA
- 401K Gainesville GA
- 401K Glennville GA
- 401K Gray GA
- 401K Grayson GA
- 401K Griffin GA
- 401K Grovetown GA
- 401K Guyton GA
- 401K Hampton GA
- 401K Hartwell GA
- 401K Hawkinsville GA
- 401K Hazlehurst GA
- 401K Hephzibah GA
- 401K Hinesville GA
- 401K Hiram GA
- 401K Jackson GA
- 401K Jasper GA
- 401K Jefferson GA
- 401K Jesup GA
- 401K Jonesboro GA
- 401K Kennesaw GA
- 401K Kingsland GA
- 401K La Fayette GA
- 401K Lagrange GA
- 401K Lawrenceville GA
- 401K Leesburg GA
- 401K Lilburn GA
- 401K Lithia Springs GA
- 401K Lithonia GA
- 401K Locust Grove GA
- 401K Loganville GA
- 401K Lyons GA
- 401K Mableton GA
- 401K Macon GA
- 401K Madison GA
- 401K Marietta GA
- 401K Mcdonough GA
- 401K Milledgeville GA
- 401K Monroe GA
- 401K Morrow GA
- 401K Moultrie GA
- 401K Newnan GA
- 401K Norcross GA
- 401K Peachtree City GA
- 401K Perry GA
- 401K Powder Springs GA
- 401K Rex GA
- 401K Richmond Hill GA
- 401K Rincon GA
- 401K Ringgold GA
- 401K Riverdale GA
- 401K Rockmart GA
- 401K Rome GA
- 401K Rossville GA
- 401K Roswell GA
- 401K Saint Marys GA
- 401K Saint Simons Island GA
- 401K Sandersville GA
- 401K Savannah GA
- 401K Sharpsburg GA
- 401K Smyrna GA
- 401K Snellville GA
- 401K Statesboro GA
- 401K Stockbridge GA
- 401K Stone Mountain GA
- 401K Summerville GA
- 401K Suwanee GA
- 401K Swainsboro GA
- 401K Sylvania GA
- 401K Sylvester GA
- 401K Thomaston GA
- 401K Thomasville GA
- 401K Thomson GA
- 401K Tifton GA
- 401K Toccoa GA
- 401K Tucker GA
- 401K Union City GA
- 401K Valdosta GA
- 401K Vidalia GA
- 401K Villa Rica GA
- 401K Warner Robins GA
- 401K Watkinsville GA
- 401K Waycross GA
- 401K Waynesboro GA
- 401K Winder GA
- 401K Woodstock GA
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