Can a Lawyer Help Me Retire in New Jersey?
There comes a point in everyone’s lives when it is about time to settle down, lessen your workload and enjoy some free time in the last chapter of your life. When planning your retirement, there are a number of different things you have to think about, like your future income, insurance, and estate planning.
Sometimes, building a comfortable retirement is tough. Employment benefits are not what they used to be, and employers can find ways to sell you short on what you deserve. It is also possible that you are not quite comfortable with the amount of savings you have. Luckily for future retirees in New Jersey, an attorney can help you navigate through this important phase in life and help you get the best deal possible.
Am I Entitled to Any Retirement Benefits?
In the state of New Jersey, there is something called the Employment Retirement Income Security Act, or ERISA. Enacted in 1974, ERISA is a set of minimum requirements for employers to meet when fulfilling your pension benefits.
The main functions of ERISA include:
- Requiring employers to hold your funds in a proper trust
- Requiring employers to give you a copy of your Form 5500 (your annual reports), summary plan descriptions, and benefit information
- Requiring that you meet your income tax obligations
- Requiring that you do not make any “prohibited transactions”
It is important to work with an attorney in making sure that your employer is following all of ERISA’s requirements, and not denying you of your benefits. ERISA does not apply to the public sector but applies to almost every private sector industry.
If you work for the public sector in New Jersey, you are entitled to pension benefits directly from the state.
What About My IRA?
An individual retirement arrangement, or an IRA, is a system recognized by the IRS which provides certain benefits for earning investment income during your retirement.
There are three main types of IRAs, a traditional IRA and Roth IRA, and a SEP-IRA:
- A traditional IRA allows you to invest money tax-free up to a certain amount each year depending on your age, income, and retirement plan. This helps you save for retirement by saving on taxes
- A Roth IRA allows you to invest normally, but then enjoy tax-free growth on your returns.
- An SEP-IRA is for entrepreneurs and those who are self-employed to invest defined sums of their retirement savings tax-free.
Before you retire, it is important to figure out which IRA plan is best for you, and which one will fit best into your retirement.
Can I Start Working Again After I Have Already Retired?
After you have retired, you can still go back to work if you want some additional income while collecting your benefits, as long as it is in the private sector, the federal public sector, or a government agency in another state. Working for a New Jersey public sector employer will
usually complicate your retirement benefits, if not voiding them completely.
Do You Need Help Planning Your Retirement in New Jersey?
If you are feeling overwhelmed with all the decisions involved with retiring in New Jersey, contact Giro, LLP, Attorneys At Law, now. We can make sure your retirement is good as it can possibly be.