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Retirement Planning

Investment products are not insured by the FDIC, are not deposits, and may lose value.

Benefits for You, Your Business and Your Employees

A retirement plan has benefits for you, your business, and your employees. Invest now for financial security when you and your employees retire, attract and retain the best employees, and benefit from potential tax advantages and other incentives. We offer a variety of plans for you and your business, regardless of its size.

IRA - Traditional and Roth

These days, an IRA, or Individual Retirement Account, remains one of the best ways to make sure you’ll be financially secure throughout your retirement years. Choose from a variety of investment options to secure your future.

  • Tax-deductible contributions (Traditional IRA)
  • Tax-free withdrawals (Roth IRA)

Rollover IRA - Traditional and Roth

Give your old 401(k) a fresh start by rolling it over to an IRA.

  • Continued tax-deferred growth
  • The potential for more investment options
  • Easily monitor and manage your investments in one place
  • Convenient access to investment information and tax records
  • Possible fee savings

SIMPLE IRA Plans

For business owners with a small number of employees, a SIMPLE IRA plan (Savings Incentive Match Plan for Employees) allows both the employees and employer to contribute to traditional individual retirement arrangement (IRA) plans set up for the employees.

  • Like traditional IRAs, these plans are tax-deferred
  • For companies with 100 or fewer eligible employees
  • Minimal administrative oversight and fees

401(k) and 403(b) Plans

Defined contribution 401(k) plans allow employees to make contributions from their paychecks. Also available are 403(b) tax-sheltered annuity (TSA) plans offered by public schools and certain tax-exempt organizations.

  • Taxes deferred on contributions and earnings until withdrawal
  • Investments can be a mix of mutual funds, company stock, individual securities, real estate, and more
  • We can help you to design your plan and administer and manage plan assets

Profit Sharing

This is a type of defined contribution plan that allows the plan or employer to determine annually how much will be contributed to the plan (out of profits or otherwise).

  • Provides employer with discretion over profit-sharing contributions
  • May be combined with a 401(k) plan
  • Features tax-deductible contribution and plan expenses

Defined Benefit Plan

Known as a traditional pension plan, this type of plan promises participants a specified monthly benefit at retirement. Benefit may be based on factors such as their salary, age and years worked for the employer. 

  • Two basic kinds of defined benefit plans: pensions and cash-balance plans
  • Employer has complete charge of participant’s investments
  • Cash-balance plans are portable; pensions are not

Nonqualified Plans

Designed to meet specialized retirement needs for key executives and other select employees, these plans are also exempt from the discriminatory and top-heavy testing to which qualified plans are subject.

  • May supplement qualified retirement plans for higher paid employees
  • Offers the employer the flexibility to change annual contributions
  • Contributions are tax-deferred for the employee until retirement

Simplified Employee Pension (SEP) Plans

With SEP plans, employers contribute on a tax-favored basis to IRAs owned by their employees. SEP plans are generally easier to manage and administer than other types of retirement plans.

  • Annual contributions are discretionary and tax-deductible to the employer
  • Fewer administrative requirements than qualified plans
  • Earnings grow tax-deferred until withdrawn

Disclosure:

Always consult with your independent attorney or tax advisor before making any tax-related financial decision, or changing or implementing any financial, tax or estate planning strategy.

Mechanics Bank investment products are: Not FDIC Insured. Not Bank Guaranteed. May Lose Value.

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