5 Retirement Saving Strategies You Should Know About

1. 5 Retirement Saving Strategies You Should Know About Don’t wait until you are near retirement age to plan for your future. Retirement planning services from QNB Bank ​​will help you secure your finances and keep your savings intact as you enter your golden years. Amassing wealth for retirement is only half the work you need to do in order to ensure financial freedom during your later years. You also want to safeguard what wealth you have acquired and make sure that you have a solid strategy in place to make your savings last. More importantly, your money has to keep generating income even when you are no longer entitled to an actual paycheck. Here are some tried and tested retirement saving strategies you should consider on top of retirement planning services from ​QNB Bank​​: 1. Tax deferral on your retirement savings It is possible to defer income tax liability on the money that you save for retirement in an IRA (up to $5,500) and a 401(k) (up to $18,000). Employees ages 50 and above can temporarily exclude from their tax dues an additional $1000 and $6000 in an IRA and 401(k) account, respectively. Income tax will not be due on the money until it is withdrawn from the account, and being in a lower tax bracket during retirement will effectively reduce your lifetime tax bill. 2. Tax-free retirement income Since you’ve already paid income tax on money contributed to a ROTH IRA and ROTH 401(k), this money will accrue without taxes as long as they stay in the account. If you take distributions after the age of 59½ from an account that’s at least 5 years old, you will never have to pay tax on its investment earnings, so the money you gain is essentially tax-free. 3. Buy annuity To safeguard retirement assets and make sure that they can carry you through your retirement, consider investing in one or several annuities. It is even possible to pay more and get your annuity checks adjusted based on inflation over time.

2. 4. Saver’s credit. Subscribing to ​retirement planning services will open your world to other retirement saving strategies and options like saver’s credit, wherein you can acquire tax credit between 10 and 50 percent of your 401(k) contribution upon qualification. 5. Tax-preferred investments Other types of investments receive what is known as preferential tax treatment. For instance, long-term capital gains are taxed at lower rates than short-term gains and regular income. Taking investments that are able to generate long-term capital gains in a retirement account means never having to pay tax on it while in the account, although ordinary income tax on the investment gains will take effect upon their withdrawal from the account.