Account Types

Retirement plan accounts offered through your employment:

Defined contribution plans (usually in the form of 401(k) profit sharing accounts) allow investors to contribute funds on pretax basis.

High Net Worth Accounts

Tax Exempt Municipal Bonds- Custodial Account

Usually suited for: High net worth clients ($1 million or more in assets) who have maxed out or would like a low risk alternative to tax deferred options.Just as federal governments issue bonds to raise capital, municipal governments do the same. In most states, such as in New York State, tax exempt municipal bonds offer the benefit of  income that is exempt from federal income taxes and state income taxes. These types of accounts can supplement or an alternative solution to tax differed accounts (IRAs, 401(k), pensions etc) and are generally well suited for high net worth clients ($1 million or more in assets). To learn more about municipal bond strategies please contact us.

Roth IRA

Usually suited for investors who have maxed out their other tax deferred options. Contributions are after tax but offer the benefit of letter investments grow and the earnings are tax free.
Non Deductible IRA

Usually suited for: High net worth, but are available to everyone,  clients who have maxed their other tax deferred accounts and aren’t eligible for a ROTH IRA (better because earnings are tax free) because their income (AGI) is above the  but would like to save additional funds.

Earnings are taxed at ordinary income rates. You will need to open an IRA account and file a form 8606 with the IRS (PLEASE NOTE THAT ACCURATE COST BASIS DATA IS ESSENTIAL WHEN DEALING WITH THIS TYPE OF ACCOUNT).