my articles | learn more about DirectoryM articles | contact us | advertise with us   
 
SEARCH:
Quick Search Results

Searching...

ABOUT US | VIEW ALL FEATURED ARTICLES | VIEW ALL TOPICS | VIEW ALL REGIONS | DM MOBILE | DM BLOG

401K North Carolina

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 North Carolina, 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 National Company

1. Local Companies

Chenier & Smith Inc
(910) 755-6177
110 Pine Stratt
Shallotte, NC
Strickland Curtis
(919) 231-6398
4016 Willow Oak Rd
Raleigh, NC
Commerce Services Corporation
(828) 665-4223
40 Dogwood Rd
Asheville, NC
Carol Stephens Acct
(919) 258-3833
208 S Main St
Broadway, NC
Glisson Sally C
(252) 758-4090
4013 Nc Highway 30
Stokes, NC
Fullagar and Company
(704) 552-6181
3129 Landerwood Dr
Charlotte, NC
Coastal Accounting & Tax Service
(252) 393-1348
117 Cedar Point Blvd
Cedar Point, NC
Traflet Michael S CPA
(910) 270-1160
14695 US Highway 17 N
Hampstead, NC
Livingston Alan S CPA
(910) 276-7894
12380 Angus Dr
Laurinburg, NC
Lechleider Tax & Accounting Inc
(704) 566-6399
5600 Executive Center Dr
Charlotte, NC


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 North Carolina 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 North Carolina. 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 National Company

BRAD DETERS-FARM BUREAU FINACIAL SERVICES

785-271-1216
5605 SW BARRINGTON CT SOUTH
TOPEKA, KS

Read more about 401K

Regional Articles
- 401K Advance NC
- 401K Ahoskie NC
- 401K Albemarle NC
- 401K Angier NC
- 401K Apex NC
- 401K Arden NC
- 401K Asheboro NC
- 401K Asheville NC
- 401K Beaufort NC
- 401K Belmont NC
- 401K Benson NC
- 401K Bessemer City NC
- 401K Black Mountain NC
- 401K Boone NC
- 401K Brevard NC
- 401K Burlington NC
- 401K Burnsville NC
- 401K Cameron NC
- 401K Camp Lejeune NC
- 401K Candler NC
- 401K Canton NC
- 401K Carrboro NC
- 401K Carthage NC
- 401K Cary NC
- 401K Chapel Hill NC
- 401K Charlotte NC
- 401K Cherryville NC
- 401K China Grove NC
- 401K Clayton NC
- 401K Clemmons NC
- 401K Clinton NC
- 401K Concord NC
- 401K Connellys Springs NC
- 401K Conover NC
- 401K Cornelius NC
- 401K Dallas NC
- 401K Davidson NC
- 401K Denver NC
- 401K Dudley NC
- 401K Dunn NC
- 401K Durham NC
- 401K Eden NC
- 401K Edenton NC
- 401K Elizabeth City NC
- 401K Elkin NC
- 401K Elon NC
- 401K Fairmont NC
- 401K Fayetteville NC
- 401K Fletcher NC
- 401K Forest City NC
- 401K Fort Bragg NC
- 401K Franklin NC
- 401K Franklinton NC
- 401K Fuquay Varina NC
- 401K Garner NC
- 401K Gastonia NC
- 401K Gibsonville NC
- 401K Goldsboro NC
- 401K Graham NC
- 401K Granite Falls NC
- 401K Greensboro NC
- 401K Greenville NC
- 401K Hamlet NC
- 401K Hampstead NC
- 401K Harrisburg NC
- 401K Havelock NC
- 401K Henderson NC
- 401K Hendersonville NC
- 401K Hertford NC
- 401K Hickory NC
- 401K High Point NC
- 401K Hillsborough NC
- 401K Holly Springs NC
- 401K Hope Mills NC
- 401K Hubert NC
- 401K Hudson NC
- 401K Huntersville NC
- 401K Indian Trail NC
- 401K Jacksonville NC
- 401K Jamestown NC
- 401K Kannapolis NC
- 401K Kernersville NC
- 401K King NC
- 401K Kings Mountain NC
- 401K Kinston NC
- 401K Knightdale NC
- 401K La Grange NC
- 401K Laurinburg NC
- 401K Leland NC
- 401K Lenoir NC
- 401K Lexington NC
- 401K Lillington NC
- 401K Lincolnton NC
- 401K Louisburg NC
- 401K Lumberton NC
- 401K Madison NC
- 401K Maiden NC
- 401K Marion NC
- 401K Marshall NC
- 401K Matthews NC
- 401K Maxton NC
- 401K Mebane NC
- 401K Mocksville NC
- 401K Monroe NC
- 401K Mooresville NC
- 401K Morehead City NC
- 401K Morganton NC
- 401K Morrisville NC
- 401K Mount Airy NC
- 401K Mount Holly NC
- 401K Mount Olive NC
- 401K Murphy NC
- 401K Nashville NC
- 401K New Bern NC
- 401K Newland NC
- 401K Newport NC
- 401K Newton NC
- 401K North Wilkesboro NC
- 401K Oxford NC
- 401K Pembroke NC
- 401K Pinehurst NC
- 401K Pittsboro NC
- 401K Raeford NC
- 401K Raleigh NC
- 401K Randleman NC
- 401K Red Springs NC
- 401K Reidsville NC
- 401K Roanoke Rapids NC
- 401K Rockingham NC
- 401K Rockwell NC
- 401K Rocky Mount NC
- 401K Roxboro NC
- 401K Rutherfordton NC
- 401K Saint Pauls NC
- 401K Salisbury NC
- 401K Sanford NC
- 401K Selma NC
- 401K Shelby NC
- 401K Siler City NC
- 401K Smithfield NC
- 401K Southern Pines NC
- 401K Spring Lake NC
- 401K Spruce Pine NC
- 401K Stanley NC
- 401K Statesville NC
- 401K Sylva NC
- 401K Tarboro NC
- 401K Taylorsville NC
- 401K Thomasville NC
- 401K Trinity NC
- 401K Wadesboro NC
- 401K Wake Forest NC
- 401K Walnut Cove NC
- 401K Washington NC
- 401K Waxhaw NC
- 401K Waynesville NC
- 401K Weaverville NC
- 401K Wendell NC
- 401K Whiteville NC
- 401K Wilkesboro NC
- 401K Williamston NC
- 401K Wilmington NC
- 401K Wilson NC
- 401K Winston Salem NC
- 401K Winterville NC
- 401K Yadkinville NC
- 401K Zebulon NC
Related Local Events
Durham Inter-Neighborhood Council Meeting (4th Tuesdays)
Dates: 8/26/2008 - 8/26/2008
Location: Community Room in the Herald Sun Bldg.
Durham NC
View Details
Document Custody Conference 2008
Dates: 9/21/2008 - 9/23/2008
Location: Charlotte Westin Hotel
Charlotte NC
View Details
Durham Inter-Neighborhood Council Meeting (4th Tuesdays)
Dates: 9/23/2008 - 9/23/2008
Location: Community Room in the Herald Sun Bldg.
Durham NC
View Details
How to Read and Understand Financial Statements
Dates: 10/8/2008 - 10/8/2008
Location: Crabtree Inn
Raleigh NC
View Details
Durham Inter-Neighborhood Council Meeting (4th Tuesdays)
Dates: 10/28/2008 - 10/28/2008
Location: Community Room in the Herald Sun Bldg.
Durham NC
View Details
Rate Article (1 Rating)
     
Articles Insider
Rss   Delicious   Digg   Add To My Yahoo   Add To My Google   Bookmark   Search Plugin
Topics:
Advertising Educational Content Home Appliances Real Estate Resources
Business Services Entertainment Home Electronics Software
Career Family Home Services Technology
Cars Fashion Internet Telecommunications
Chamber of Commerce Financial Services Legal Trade Shows
Computer Hardware Franchise Miscellaneous Travel
Construction Health Nightlife Weddings
Education Holidays Online Database World History
Articles.DirectoryM.com | Search | About Us | Contact Us | Mobile | Blog | En Español
Copyright © Interaction Media Group. All rights reserved.