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Retirement Investments

Putting It All Together

Saving for your future is a process, not an event. It is not something that you do once and forget about; it is a continual process of taking action: planning and doing, maintaining and balancing your priorities, and re-evaluating and making changes.

The bottom line is that it is up to you to plan for your retirement. Company plans are a great start, but it is up to you to build a retirement fund to live the lifestyle of your dreams. If you or your spouse has a business, it is up to you both to provide for your retirement by setting up your own retirement plans.

Following is a review of various retirement plans and strategies. [Note: For all Keogh plans listed below, they are qualified plans, so unless it is a profit sharing plan that allows for in service distributions, hardship or loans, the only distributable events are termination of employment, retirement, death, or disability].


Best for

Early Withdrawal

401(k)'Profit Sharing

Employees who qualify3,7

Depends on the plan2,4


Those who don't have company pension plans or who have put the pre-tax maximum into their company plans

Always permitted2,5


Self-employed person who is a sole proprietor1,7

Always permitted2,5


Employers with 100 or fewer employees who earned $5,000 during the preceding year7, 10

Depends on plan


Small-business owner who is funding a plan for himself and employees. Contributions are discretionary.1,7

Depends on plan2,6


Small business owner who is funding a plan for himself and employees. Contributions are required to be made each year.1,7

Depends on plan2,6


Self-employed person nearing retirement who needs to fund a larger retirement benefit1,7

Depends on plan2,6


Someone who has put the maximum into other plans and who won't need the money for at least 10 years8

Always permitted2,5


Someone who has put the maximum into other plans, prefers a fixed rate of return and who won't need the money for at least 10 years8

Always permitted2,5


Someone who has put the maximum into other plans, needs additional insurance coverage, and who won't need the money for at least 10–12 years8

Permitted by surrendering your policy4


Everyone who qualifies9

Generally, only for hardship, but depends on plan


Individuals who are in at least the 25% federal marginal income tax bracket

Always permitted


  1. Small-business owners fund the SEPs and Keoghs of their employees.
  2. Amount of withdrawal is subject to 10% income tax penalty (if applicable), except in case of death or disability.
  3. Matching contributions—Anywhere from 0% to 100% of percentage of employee's contribution, but typically anywhere up to 6% of salary.
  4. Loans may be permitted.
  5. Loans not permitted.
  6. Loans may be permitted.
  7. Tax break on contributions and earnings.
  8. No tax break on contribution, earnings grow tax-deferred.
  9. Taxes postponed on deferred earnings.
  10. Matching contributions required—up to 3% of employee's wages or $6,000, whichever is less.

Not a Deposit.
Not FDIC-Insured.
Not Insured by any Government Agency.
Not Guaranteed by the Bank.
May go Down in Value.

Investment and insurance products and services are offered through INFINEX INVESTMENTS, INC. Member FINRA/SIPC. BancorpSouth Wealth Management is a trade name of BancorpSouth Bank, a division of Cadence Bank. Infinex and the bank are not affiliated. Products and services made available through Infinex are not insured by the FDIC or any other agency of the United States and are not deposits or obligations of nor guaranteed or insured by any bank or bank affiliate. These products are subject to investment risk, including the possible loss of value.


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