IRAs/Retirement
Mutual funds, like our family of Pax World funds, can make great investments for people planning for their retirements. Just as choosing the right mutual fund can be demanding, choosing the right type of retirement account can be critical.
Below we outline the basics. For more information, contact the Pax World Customer Service Center at 800.767.1729.
Traditional IRA Account
Certain individuals can make tax-deductible contributions to this account up to a maximum of 100% of earned income or $4,000 ($5,000 for persons aged 50 or older), whichever is less, for tax year 2007.. In 2008 the limit increases to $5,000 plus the $1,000 catch-up contribution for persons aged 50 or older. You pay taxes only when funds are withdrawn, presumably in retirement, when you may well be in a lower tax bracket.
Roth IRA Account
Contributions to a Roth IRA are not deductible, but after five years certain types of withdrawals can be made on a tax-free basis.
IRA Rollover
If you retire, change jobs, or leave employment for any reason, that may be the time to re-evaluate your retirement planning. For example, you may want to move retirement assets into or out of an IRA. This process, called an IRA Rollover, is simple once you understand your options. Click here for Pax World’s IRA Rollover Guide. Click here for general information about Rollover IRAs.
For Small Businesses and Nonprofits
SIMPLE IRA Account
Designed for small businesses, this easy-to-maintain retirement plan combines the benefits of employer funding with salary reduction and can be adopted by businesses with up to 100 employees.
SEP IRA Account
This employer-funded retirement plan is popular with small businesses and self-employed persons.