David Duston
MoneyWorks Group
4324 Mapleshade Lane, Suite 155
Plano, Texas 75093
david.duston@agent.annuity.com
(469) 952-1853
Planning for retirement is crucial for financial security, and one of the most significant tools at your disposal is your employer-sponsored retirement plan. These plans are designed to help employees build a financial cushion for the future, but understanding how they work is essential for making informed decisions.
Employers may offer different types of retirement plans, each with its own benefits and requirements. The two primary categories are defined benefit plans and defined contribution plans.
Your employer and plan administrators have specific legal responsibilities under the Employee Retirement Income Security Act of 1974 (ERISA). This federal law establishes private retirement plan standards, ensuring participants receive proper oversight and protection. However, employees also have responsibilities, including:
Retirement benefits are typically available when an employee reaches a specified age, though some plans allow for early withdrawals with penalties. Defined benefit plans often pay out monthly annuities for life. In contrast, defined contribution plans allow employees to withdraw funds as a lump sum, roll them into an Individual Retirement Account (IRA), or opt for annuity payments.
Certain life events can affect retirement benefits, including:
Your retirement plan is a critical component of long-term financial stability. Understanding how it works, staying informed about your rights, and taking an active role in managing your retirement savings can help ensure a secure and comfortable future. If you have questions, consult your plan administrator or a financial advisor to maximize your benefits.
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