Tax Savings Made Easy

401k/ Roth 401k

Advantage

A Roth 401(k) is a type of employer-sponsored retirement plan that allows employees to make after-tax contributions to their retirement account.

Flexibility

A Roth 401(k) is a type of employer-sponsored retirement plan that allows employees to make after-tax contributions to their retirement account.

No Required Minimum Distributions

Unlike traditional 401(k) plans, there are no required minimum distributions (RMDs) for Roth 401(k)s. You can keep your money in the account as long as you want.

Flexibility

Roth 401(k)s offer more flexibility than traditional 401(k)s because you can withdraw contributions tax-free and penalty-free at any time.

Employer Matching Contributions

Your employer will match a portion of your contributions up to a certain percentage, which can help you reach your retirement savings goals faster.

Tax-free

One of the biggest advantages of a Roth 401(k) is that withdrawals in retirement are tax-free

Tax-Free Withdrawals

One of the biggest advantages of a Roth 401(k) is that withdrawals in retirement are tax-free. Since contributions are made with after-tax dollars, you've already paid taxes you've put into the account.

Diversification

Having both a traditional 401(k) and a Roth 401(k) can provide tax diversification in retirement, allowing you to choose which account to withdraw from based on your tax situation each year.

Requirement

A Roth 401(k) is a type of employer-sponsored retirement plan that allows employees to make after-tax contributions to their retirement account.

Income requirement

It's important to note that the specific requirements and rules for a Roth 401(k) may vary depending on the employer and the plan.

Age

There is no age limit to contribute to a Roth 401(k), unlike traditional 401(k) plans which require individuals to start taking required minimum distributions (RMDs) at age 72.

Income

Roth 401(k) contributions are subject to income limits. In 2023, individuals earning more than $140,000 and married couples filing jointly earning more than $208,000 are not eligible to contribute to a Roth 401(k).

Financial requirement

It's important to note that the specific requirements and rules for a Roth 401(k) may vary depending on the employer and the plan.

Contribution Limits

The contribution limit for a Roth 401(k) in 2023 is $19,500, with an additional catch-up contribution of $6,500 for individuals over age 50.

Withdrawal Rules

Like all retirement accounts, there are penalties for early withdrawals before age 59 ½. However, contributions to a Roth 401(k) can be withdrawn tax-free and penalty-free at any time, while earnings can be withdrawn tax-free and penalty-free after age 59 ½ and if the account has been open for at least five years.

The process

Initial inquiry
Proposal review
TransGlobal service agreement
Plan setup
Plan implementation
Plan investments

Initial inquiry

STEP 1

Client or agent will complete the Pension Inquiry form or website application to provide information to TransGlobal. The information provided allows TransGlobal to generate a proposal with maximum contributions based on independent variables.

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Proposal review

STEP 2

Agent and/or TransGlobal team member presents the proposal to the client to explain each contribution amount. The administration fee structure will also be reviewed here.

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TransGlobal service agreement

STEP 3

Once the client understands the proposal and wishes to proceed to plan setup, the TransGlobal Service Agreement will need to be signed. This form details all direct fees charged to the client and explains TransGlobal's responsibilities as the plan administrator.

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Plan setup

STEP 4

TransGlobal applied for plan documentation on behalf of the client's business. A new EIN number will need to be procured to identify the pension plan trust. The client will need to review and sign the completed SS-4 form provided by TransGlobal prior to submission.

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Plan implementation

STEP 5

Once the plan documents are issued and received by TransGlobal, a TransGlobal team member will meet with the client to discuss the details and structure of the newly established pension trust. The client's signature will be required to approve the plan documents.

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Plan investments

STEP 6

Finally, an account will need to be set up to receive the contributions for the pension plan. The type of account that will be opened may vary due to the client's profile. Due to the limitations of qualified plans, a TransGlobal team member may assist in recommending a suitable account.

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