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Tax Beneficial Accounts You Should Consider

Tax Beneficial Accounts You Should Consider

Posted On: January 11, 2017 by Bank of Blue Valley in: Personal Finances, Retirement, Savings

One of the most proactive ways you can protect your personal finances is to take advantage of tax beneficial accounts. Though these accounts are typically tied to retirement savings, this is not always the case. At Bank of Blue Valley we want to help you make the most of your money, by offering tips on these two important accounts:   Work Sponsored Retirement Account (401k): Many companies now offer this account as a corporate benefit. By automatically withdrawing pre-tax dollars from your monthly income, you are able to save for retirement before you even receive your paycheck. The funds you contribute, along with those matched by the company, can then be invested into a variety of options, pushing your money to continue multiplying. Since these funds are meant to act as retirement savings, any early withdrawals have a 10 percent penalty in addition to the income taxes due. However, once you reach age 59 ½, you can start taking regular distributions from this employer-sponsored...