Individual Retirement Plan Options 

LHFG offers several retirement plan options for individuals including traditional IRAs, Roth IRAs, SIMPLE IRAs, 403(b)s, and 457(b) plans. Custody for these plans can be provided through several partners including Fidelity NFS, Pershing LLC, and Schwab Institutional.   

Individual Retirement Account (IRA): An Individual Retirement Account (IRA) is a tax-advantaged account designed to help individuals save for retirement. Contributions to a Traditional IRA may be tax-deductible, and earnings grow tax-deferred until withdrawal. Alternatively, a Roth IRA allows after-tax contributions, with tax-free growth and withdrawals in retirement. IRAs provide flexibility in investment choices, including stocks, bonds, mutual funds, and more, making them a key tool for retirement planning.

Roth IRA: A Roth IRA is a retirement savings account that offers tax-free growth and tax-free withdrawals in retirement. Unlike a Traditional IRA, contributions to a Roth IRA are made with after-tax dollars, meaning they are not tax-deductible. However, qualified withdrawals, including both contributions and earnings, are entirely tax-free after age 59½, provided the account has been open for at least five years. Roth IRAs also provide flexibility, as contributions (but not earnings) can be withdrawn at any time without penalties or taxes, making them a versatile option for both retirement and long-term financial planning.

SIMPLE IRA (Savings Incentive Match Plan for Employees): A SIMPLE IRA is a retirement savings plan designed for small businesses and self-employed individuals. It offers both employers and employees a simple, tax-advantaged way to contribute toward retirement. Employers are required to either match employee contributions up to 3% of their compensation or contribute a fixed 2% of compensation for all eligible employees. SIMPLE IRAs are easy to set up and administer, providing an attractive option for businesses seeking a cost-effective retirement plan.

403(b) Retirement Plan: A 403(b) plan is a tax-advantaged retirement savings plan available to employees of public schools, tax-exempt organizations, and certain ministers. Similar to a 401(k), it allows participants to make pre-tax or Roth contributions, enabling tax-deferred or tax-free growth of investments. Many 403(b) plans offer annuities or mutual funds as investment options, and employers may provide matching contributions. This plan is a powerful tool for educators and nonprofit workers to secure a financially stable retirement.

457(b) Deferred Compensation Plan: A 457(b) plan is a retirement savings option available to employees of state and local governments and some nonprofit organizations. It allows participants to defer a portion of their salary, reducing taxable income while enabling investments to grow tax-deferred. Unlike other retirement plans, 457(b) plans do not impose early withdrawal penalties if you leave your job before retirement age, providing added flexibility for those seeking to maximize retirement savings.

Individual retirement plan options will be handled one-on-one through consultations with Dr. Lance and any NABSTMC member considering those options.