401K New York

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 New York, especially those who do not own homes, their 401(k)'s can be their biggest assets.


1. Local Companies

Walnut Street Securities, Inc
619-602-9000
299 Hudson Avenue
Albany, NY
Walnut Street Securities, Inc.
(518)330-6804
5 Newcomb Drive
Albany, NY
Culhane Timothy M CPA
(585) 238-3300
2200 Chase Sq
Rochester, NY
Expo Services Ltd
(631) 736-1977
1344 Middle Country Rd
Centereach, NY
Limbeck Harvey A CPA
(585) 546-7640
Marine Midland Plz
Rochester, NY
Pitkin Tax Svce Inc
(718) 638-6202
1134 Fulton St
Brooklyn, NY
Cotton Terry CPA
(585) 924-4806
1235 Hunters Run
Victor, NY
Dicocco Lawrence D
(518) 393-1395
1598 Union St
Schenectady, NY
Kujawski Walter R CPA
(845) 651-7582
16 Highview Ave
Florida, NY
Nealon John
(631) 537-1973
Main
Bridgehampton, NY


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 New York 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 New York. 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

Walnut Street Securities, Inc.

(518)330-6804
5 Newcomb Drive
Albany, NY
www.walnutstreet.com

Regional Articles
- 401K Albany NY
- 401K Albion NY
- 401K Alden NY
- 401K Amityville NY
- 401K Amsterdam NY
- 401K Angola NY
- 401K Arverne NY
- 401K Astoria NY
- 401K Auburn NY
- 401K Babylon NY
- 401K Baldwin NY
- 401K Baldwinsville NY
- 401K Ballston Lake NY
- 401K Ballston Spa NY
- 401K Batavia NY
- 401K Bath NY
- 401K Bay Shore NY
- 401K Bayside NY
- 401K Beacon NY
- 401K Bellerose NY
- 401K Bellmore NY
- 401K Bethpage NY
- 401K Binghamton NY
- 401K Bohemia NY
- 401K Brentwood NY
- 401K Brewster NY
- 401K Brockport NY
- 401K Bronx NY
- 401K Bronxville NY
- 401K Brooklyn NY
- 401K Buffalo NY
- 401K Cambria Heights NY
- 401K Camillus NY
- 401K Canandaigua NY
- 401K Canastota NY
- 401K Canton NY
- 401K Carmel NY
- 401K Carthage NY
- 401K Catskill NY
- 401K Centereach NY
- 401K Central Islip NY
- 401K Chappaqua NY
- 401K Chester NY
- 401K Cicero NY
- 401K Clifton Park NY
- 401K Clinton NY
- 401K Cohoes NY
- 401K College Point NY
- 401K Commack NY
- 401K Copiague NY
- 401K Coram NY
- 401K Corning NY
- 401K Corona NY
- 401K Cortland NY
- 401K Cortlandt Manor NY
- 401K Croton On Hudson NY
- 401K Dansville NY
- 401K Deer Park NY
- 401K Delmar NY
- 401K Depew NY
- 401K Dobbs Ferry NY
- 401K Dunkirk NY
- 401K East Amherst NY
- 401K East Aurora NY
- 401K East Elmhurst NY
- 401K East Hampton NY
- 401K East Islip NY
- 401K East Meadow NY
- 401K East Northport NY
- 401K East Rockaway NY
- 401K East Setauket NY
- 401K East Syracuse NY
- 401K Elmhurst NY
- 401K Elmira NY
- 401K Elmont NY
- 401K Endicott NY
- 401K Fairport NY
- 401K Far Rockaway NY
- 401K Farmingdale NY
- 401K Farmingville NY
- 401K Fayetteville NY
- 401K Fishkill NY
- 401K Floral Park NY
- 401K Flushing NY
- 401K Forest Hills NY
- 401K Franklin Square NY
- 401K Fredonia NY
- 401K Freeport NY
- 401K Fresh Meadows NY
- 401K Fulton NY
- 401K Gansevoort NY
- 401K Garden City NY
- 401K Geneseo NY
- 401K Geneva NY
- 401K Getzville NY
- 401K Glen Cove NY
- 401K Glen Head NY
- 401K Glen Oaks NY
- 401K Glens Falls NY
- 401K Gloversville NY
- 401K Goshen NY
- 401K Gouverneur NY
- 401K Grand Island NY
- 401K Great Neck NY
- 401K Hamburg NY
- 401K Hampton Bays NY
- 401K Harrison NY
- 401K Hartsdale NY
- 401K Hauppauge NY
- 401K Haverstraw NY
- 401K Hempstead NY
- 401K Hicksville NY
- 401K Highland NY
- 401K Hilton NY
- 401K Holbrook NY
- 401K Hollis NY
- 401K Holtsville NY
- 401K Hopewell Junction NY
- 401K Hornell NY
- 401K Horseheads NY
- 401K Howard Beach NY
- 401K Hudson Falls NY
- 401K Hudson NY
- 401K Huntington NY
- 401K Huntington Station NY
- 401K Hyde Park NY
- 401K Ilion NY
- 401K Islip NY
- 401K Ithaca NY
- 401K Jackson Heights NY
- 401K Jamaica NY
- 401K Jamestown NY
- 401K Jericho NY
- 401K Johnson City NY
- 401K Johnstown NY
- 401K Katonah NY
- 401K Kew Gardens NY
- 401K Kings Park NY
- 401K Kingston NY
- 401K Lake Grove NY
- 401K Lancaster NY
- 401K Larchmont NY
- 401K Latham NY
- 401K Levittown NY
- 401K Lewiston NY
- 401K Lindenhurst NY
- 401K Little Neck NY
- 401K Liverpool NY
- 401K Lockport NY
- 401K Long Beach NY
- 401K Long Island City NY
- 401K Lynbrook NY
- 401K Mahopac NY
- 401K Malone NY
- 401K Mamaroneck NY
- 401K Manhasset NY
- 401K Manlius NY
- 401K Manorville NY
- 401K Maspeth NY
- 401K Massapequa NY
- 401K Massapequa Park NY
- 401K Massena NY
- 401K Mastic Beach NY
- 401K Mastic NY
- 401K Mechanicville NY
- 401K Medford NY
- 401K Medina NY
- 401K Melville NY
- 401K Merrick NY
- 401K Middle Island NY
- 401K Middle Village NY
- 401K Middletown NY
- 401K Miller Place NY
- 401K Mineola NY
- 401K Monroe NY
- 401K Monsey NY
- 401K Monticello NY
- 401K Mount Kisco NY
- 401K Mount Vernon NY
- 401K Nanuet NY
- 401K Nesconset NY
- 401K New City NY
- 401K New Hartford NY
- 401K New Hyde Park NY
- 401K New Paltz NY
- 401K New Rochelle NY
- 401K New Windsor NY
- 401K New York NY
- 401K Newark NY
- 401K Newburgh NY
- 401K Niagara Falls NY
- 401K North Babylon NY
- 401K North Tonawanda NY
- 401K Northport NY
- 401K Norwich NY
- 401K Nyack NY
- 401K Oakland Gardens NY
- 401K Oceanside NY
- 401K Ogdensburg NY
- 401K Olean NY
- 401K Oneida NY
- 401K Oneonta NY
- 401K Ontario NY
- 401K Orchard Park NY
- 401K Ossining NY
- 401K Oswego NY
- 401K Owego NY
- 401K Ozone Park NY
- 401K Patchogue NY
- 401K Pearl River NY
- 401K Peekskill NY
- 401K Pelham NY
- 401K Penfield NY
- 401K Penn Yan NY
- 401K Pine Bush NY
- 401K Pittsford NY
- 401K Plainview NY
- 401K Plattsburgh NY
- 401K Pleasantville NY
- 401K Port Chester NY
- 401K Port Jefferson Station NY
- 401K Port Jervis NY
- 401K Port Washington NY
- 401K Potsdam NY
- 401K Poughkeepsie NY
- 401K Queens Village NY
- 401K Queensbury NY
- 401K Red Hook NY
- 401K Rego Park NY
- 401K Rensselaer NY
- 401K Richmond Hill NY
- 401K Ridge NY
- 401K Ridgewood NY
- 401K Riverhead NY
- 401K Rochester NY
- 401K Rockaway Park NY
- 401K Rockville Centre NY
- 401K Rocky Point NY
- 401K Rome NY
- 401K Ronkonkoma NY
- 401K Roosevelt NY
- 401K Rosedale NY
- 401K Roslyn Heights NY
- 401K Roslyn NY
- 401K Rye NY
- 401K Saint Albans NY
- 401K Saint James NY
- 401K Saratoga Springs NY
- 401K Saugerties NY
- 401K Sayville NY
- 401K Scarsdale NY
- 401K Schenectady NY
- 401K Seaford NY
- 401K Selden NY
- 401K Seneca Falls NY
- 401K Shirley NY
- 401K Smithtown NY
- 401K South Ozone Park NY
- 401K South Richmond Hill NY
- 401K Southampton NY
- 401K Spencerport NY
- 401K Spring Valley NY
- 401K Springfield Gardens NY
- 401K Staten Island NY
- 401K Stony Brook NY
- 401K Stony Point NY
- 401K Suffern NY
- 401K Sunnyside NY
- 401K Syosset NY
- 401K Syracuse NY
- 401K Tarrytown NY
- 401K Tonawanda NY
- 401K Troy NY
- 401K Uniondale NY
- 401K Utica NY
- 401K Valley Stream NY
- 401K Vestal NY
- 401K Walden NY
- 401K Wallkill NY
- 401K Wantagh NY
- 401K Wappingers Falls NY
- 401K Warwick NY
- 401K Waterford NY
- 401K Waterloo NY
- 401K Watertown NY
- 401K Watervliet NY
- 401K Webster NY
- 401K Wellsville NY
- 401K West Babylon NY
- 401K West Harrison NY
- 401K West Hempstead NY
- 401K West Islip NY
- 401K Westbury NY
- 401K White Plains NY
- 401K Whitesboro NY
- 401K Whitestone NY
- 401K Williston Park NY
- 401K Woodhaven NY
- 401K Woodmere NY
- 401K Woodside NY
- 401K Wyandanch NY
- 401K Yonkers NY
- 401K Yorktown Heights NY
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