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RETIREMENT



Choose from a variety of retirement savings options

The retirement savings options listed here are commonly considered during the retirement planning process. Each of these savings options is funded by a variety of investment choices — stocks, bonds, mutual funds, money market instruments, certificates of deposits and other securitized investment vehicles.

Company pension plans — To establish a company pension plan, your employer invests in a pension fund or trust for employees who met the requirements of the plan (i.e., age, years of service, full-time vs. part-time, etc.).

Simplified Employee Pension (SEP) — SEP plans are provided by sole proprietors or small businesses and corporations that have no other retirement plan.

Individual Retirement Arrangements (IRA) — An IRA is the most common form of tax-deferred retirement plan. It's personal rather than company-sponsored.

Deductibility of IRA contributions is limited for some taxpayers depending on their income and the availability of a pension plan at their work.

Traditional IRA — All or part of your IRA contribution is generally deductible from your taxable income, depending on your income level. Your contributions and earnings accumulate tax — free but are subject to taxation when they are withdrawn.

Roth IRA — With a Roth IRA, you receive no up-front tax deduction for annual contributions. But, if you meet the rules of the tax law, your contributions and earnings can be withdrawn tax-free. A Roth IRA can be started by a person of any age, as long as the person is otherwise eligible.

457 deferred compensation plans — These plans are available to employees of city or state governments. A 457 deferred compensation plan permits employees to defer taxes on both the income they invest and the earnings of their investment until some later date.

403(b) tax-deferred annuity If you work for a nonprofit organization, you may be able to earn retirement income from a 403(b) tax-deferred annuity. "Annuitants" receive the benefit of tax-deferred compounding for as long they keep their money invested in the annuity. Earnings are taxed at the annuitant's regular tax rate at the time of withdrawal. A Roth option may also be available.

401(k) plans Many businesses now offer 401(k) plans as the primary retirement savings option for their employees. Most companies match a portion of their employees' contribution to a 401(k) plan. No taxes are due on contributions and any investment earnings until funds are withdrawn from the plan. Some 401(k) plans now also offer a Roth option, referred to as a "Roth 401(k)."

Hello future.
Lincoln Financial Group is the marketing name for Lincoln National Corporation and insurance
company affiliates, including The Lincoln National Life Insurance Company, Fort Wayne, IN,
and in New York, Lincoln Life & Annuity Company of New York, Syracuse, NY. Variable products
distributed by broker/dealer-affiliate Lincoln Financial Distributors, Inc., Radnor, PA. Securities
and investment advisory services offered through other affiliates. Explore Lincoln.



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