Annuity & 401K

Choose between a full range of Annuity & 401K with the professionals at Best Life Insurance.

Deciding on any kind of retirement plan is a big deal. All choices should be considered. This is something going towards a time where you will need it the most. So, deciding which plan is best for you should be done thoroughly.

An Annuity & 401K are both types of retirement plans many are familiar with. Both are used to save and grow money for the retirement season of life. Get details on each and a better understanding of which plan is best for you.

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Which annuity & 401K insurance is right for you?

Annuities

Contribute large sums to a tax-deferred plan and save toward your retirement over time. Choose a fixed or variable annuity.

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401K Rollover

Move a previous 401K to a new account at Best Life Insurance. Enjoy the same benefits and keep your assets.

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403B Rollover

A retirement plan made for educators. Set up a new 403B plan with our Best Life Insurance experts.

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IRA Rollover

Go through the direct or indirect IRA Rollover process with the Best Life Insurance team. Then move new assets over.

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Roth Rollover

Roth accounts are tax-free. So, rollover an account you opened before and enjoy those Roth benefits.

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457 Rollover

Government officials and firefighters enjoy the 457 plan. Set a certain amount of your salary to contribute to this plan.

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412E Rollover

Small business owners protect what you have with the 412E Rollover. And enjoy tax-deduction benefits.

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Getting assistance from an insurance agent, learning about these plans, and having them set up your plan is a great idea. The Best Life Insurance team has 15 years of combined experience in getting people the retirement plan that best fits them.

This is a job that we love doing and want to help you with. We will teach you a little bit about these plans, and when you’re ready, you can come in and discuss with us further. The Best Life Insurance team is ready for you.

Plan Definitions

One of the first things that we like to do with all of our clients is make sure they fully understand each plan. If they are in the middle of deciding between 2 or more types of plans, we lay out the definitions and facts for them. This way they can make a better decision.

As we say, it is always a good thing to get more information about something you are debating on. It doesn’t hurt to get and know more information, but it does hurt to not have information.

With Annuity & 401K, the starting definitions are pretty simple. They are both retirement plans that anyone with an income can use. Now when it comes to what makes them different, there is much to learn and to consider. Once you have learned what both of them bring to the table, it will be easier to make a decision based on what you’re looking for.

In addition to this, you can make the decision based on the opinions and suggestions that our insurance agents give you. As you speak to them more in-depth about what you want and are looking for, they can assist you in making a more informed decision.

Take your time to read about each of these plans. When you’re ready, our agents will be ready for you.

Annuity

Let’s start with an annuity. An annuity is a way to ensure that you have an income during your retirement season. This is what an annuity was created for. It acts as a source of income for you during this time. The question is, how does the money in this account and plan get there, and how does it grow.

The way these plans grow is through contributions made by the plan owner. Any income that the person is making before retirement can be used to make contributions to the account. For annuities, these contributions are usually large sums. This means instead of making small contributions, one large contribution is made quarterly.

There are several different kinds of annuities, and these can become complex very quickly if there is no one to explain their differences. Each of them has its own advantages and disadvantages, but it ultimately depends on how you would like to contribute to the account.

Lastly, it is important to know that this plan is a tax-deferred plan. This means as you are making contributions, your account is growing with no tax but, when you’re ready to make a withdrawal, then the amount will be taxed.

401k

For a 401K, there are two kinds. There is the traditional 401K and the Roth 401K. Traditional 401K’s are the ones that many are familiar with. This is because many employers offer this plan to their employees. This plan is a tax-deferred plan, just like an annuity. So, income tax will be paid when a withdrawal is made.

For a Roth 401K, the plan is a tax-free plan. This means that income tax is not removed with a withdrawal is made. Most employers don’t offer this plan, and employees have to go and get this plan for themselves.

Again, it depends on the benefits you are looking for in a retirement plan. Both of these have contributions from both the plan owner and, most of the time, their employer. Employers set an amount that they will contribute at the beginning of employment.

401K’s are one of the simpler plans and are one of the most used plans for this is a great consideration as well.

The Difference Between an Annuity & 401K

There are major differences between an Annuity & 401K. One of the first ways they are different is the way in which contributions are made.

For annuities, contributions are made mainly in large sums and by the plan owner. With a 401K plan, owners can make contributions with periodic payments. So, if they wanted to add a certain amount from their salary every month, they can do that.

In addition to that, their employers can contribute to their accounts. The amount they contribute can match the amount the person is paying or come up with their own amount.

Now, it’s time to choose what is best for you. You have some more information about Annuity & 401K, and you can compare and contrast them. Best Life Insurance agents can break down more about each one and answer any lingering questions. Make an appointment or walk into our office to talk more about Annuity & 401K.