Is planning for your retirement, one of the biggest concerns in your life? How will you survive without a job? Equinox Securities is here to help. We offer a wide range of Products and Services that you will need to achieve your retirement goals. By working with our talented registered representatives you will have all of the tools necessary to build a solid financial future.
When planning for retirement, there are a number of investment vehicles that should be considered. These can range from personal investment accounts, where you control the products and services, to corporate controlled retirement plans, of which you can be a participant. A couple examples of individual controlled accounts would be the various types of IRA’s or tax deferred annuities. Corporate controlled accounts would include any type of pension plan or 401(k) Plan offered by your employer.


What is an IRA you may ask?:

IRA: Individual Retirement Account. A tax-deferred retirement account for an individual that permits them to set aside money each year, with the earnings tax-deferred until withdrawals begin at age 59 1/2 or later (or earlier, with a 10% penalty). IRAs can be established at a bank, mutual fund, or brokerage firm like Equinox Securities. Only those who do not participate in a pension plan at work or who do participate and meet certain income guidelines can make tax deductible contributions to an IRA. All others can make contributions to an IRA on a non-deductible basis. In certain circumstances a participant is able to roll over a distribution to another IRA or withdraw funds using a special schedule of early payments made over the participant's life expectancy.

If your retirement planning includes the use of an IRA (Individual Retirement Account) these are some features that you should keep in mind. For example:

• Up to $5,000.00 can be invested for individuals and up to $10,000.00 for married (working) couple in your retirement accounts.
• Tax deferred growth of earnings
• Contributions may be tax deductable.
• Potential penalties for withdrawals prior to age 59 ½ and mandatory distributions forced at age 70 ½.
• Triple compounding effect to earnings, principal earns interest. Interest earns interest and dollars that would have been paid in taxes also earn interest.

There are many types of IRA accounts, in order to select the type of account that is right for you, we would advise that you read the following descriptions and speak with one of our investment professionals.

Traditional IRA:

• Available to investors (and their spouses) under 70-1/2 with earned income.
• Tax credit available for eligible taxpayers.
• Reduces current income tax liability for those who qualify for a tax deduction.
• Earnings grow tax-deferred.
• Penalty-free withdrawals for investors who are at least age 59-1/2 years of age.
• Penalty-free withdrawals for first-home purchase, higher education, death, disability and certain medical and health insurance bills.

Roth IRA:

A new type of IRA, established in the Taxpayer Relief Act of 1997, which allows taxpayers, subject to certain income limits, to save for retirement while allowing the savings to grow tax-free. Taxes are paid on contributions, but withdrawals, subject to certain rules, are not taxed at all.

• Tax-free earnings (provided certain conditions are met).
• Tax credit for eligible taxpayers.
• Tax-free distributions; no need to project for future tax bites.
• No required minimum distributions before death.
• Contributions can continue as long as the owner has income (no age limitation)

IRA ROLLOVER:

A tax-free reinvestment of a distribution from a qualified retirement plan into an IRA or other qualified plan within a specific time frame, usually 60 days. These transfers can happen when leaving a job at an employer who offered a retirement plan such as a 401(k) plan. The company can issue a check for the amount minus 20% in withheld taxes. To avoid this penalty, the IRA rollover must be done trustee to trustee, meaning that the check is made out to the new trustee or custodian of the IRA rollover. The company will provide the check and the participant must deposit the check into the new account within 60 days. Also called rollover.

• Take advantage of more investment choices and growth potential.
• Minimize risks associated with leaving your money with a former employer.
• Rollovers are accepted from qualified plans such as an employer sponsored plan like 401(k) or an existing IRA from another brokerage company.
• Contributions are assets received from the qualified plan.
• Tax- deferred earnings.
• Avoid possible tax consequences and penalties of other distribution choices.

Coverdell Education Plan:

An investment vehicle designed to help parents fund their child's education. The Coverdell Education Savings Account has replaced the Education IRA. Contributions to the account are taxed, but earnings used to pay education expenses are not. The account is transferable among family members. However, there are several restrictions attached to this account. The entire account has to be disbursed before the beneficiary's 30th birthday, and any withdrawals after this date or for expenses that do not qualify under the act will be subject to income taxes and a penalty.

• Saving money for your child’s education expenses.
• You can set this up for anyone under 18 years of age.
• You do not pay taxes upon withdrawing money, although the initial contributions are not tax-deductible.
• This is a great plan for anyone looking to set up education accounts that can grow and be used to meet the needs of their children throughout all their school years not just college.

Simple IRA (Savings Incentive Match Plan for Employees:

SIMPLE. A retirement plan sponsored by companies with fewer than 100 employees which is attractive for employers because it avoids some of the administrative fees and paperwork of plans such as a 401(k) plan. A SIMPLE plan may be structured as a 401(k).

• Easy to set up and run – usually just a phone call to a financial institution gets things started.
• Administrative costs are low.
• Employees can contribute, on a tax-deferred basis, through convenient payroll deductions.
• You can choose either to match the employee contributions of those who decide to participate or to contribute a fixed percentage of all eligible employees’ pay.

Self-Directed Retirement Account:

SEP Plan:

A retirement program for self-employed people or owners of companies with less than 25 employees, allowing them to defer taxes on investments intended for retirement. This plan allows employers to contribute on behalf of eligible employees, and all contributions are tax-deductible as a business expense and can be integrated with Social Security contributions. In addition, there is no minimum contribution requirement.

• SEP IRA’s are designed for the self-employed and small business owners.
• All earnings are tax deferred until withdrawal.
• Allows higher contributions than a traditional or Roth IRA, therefore is potentially more beneficial for small business owners or the self-employed funding their own retirement.

401(k) Plan:

A defined contribution plan offered by a corporation to its employees, which allows employees to set aside tax-deferred income for retirement purposes, and in some cases employers will match their contribution dollar-for-dollar. Taking a distribution of the funds before a certain specified age will trigger a penalty tax. The name 401(k) comes from the IRS section describing the program.

• Company Match-This is a plan that your employers offer to you. Most employers will match your contributions into your 401 K plan; however some employers may have a timeline set up before they place contributions into your account.
• Tax Deferral -You are deferring taxes in multiple ways. You defer taxes on the income you’re contributing to the plan. You will defer taxes on any investment income or realized capital gains; a dollar not paid in taxes is a dollar that can generate income for you. This is what makes a 401(k) plan or other tax-deferral plan extremely attractive.
• Control- 401(k) contributions are your money, in your name, invested with independent financial institutions that serve your employer. You control how the assets are invested, you can access the money at any time (you will pay penalties if you withdraw it before you turn 59 ½), and if you leave, you can roll the assets into a self-directed Rollover IRA. You’re in control of your 401(k) Plan.

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