Retirement Planning Lawyers in Napa, California


Giving You Peace of Mind About Your Future

If you’re worried about how you’ll afford to retire, you’re not alone. Many Napa County business owners and individuals do not have a retirement plan yet and aren’t sure when they can quit working. But today is the day to change that. When you contact an estate planning lawyer at our Napa, CA law firm, you can get the legal aid you need to understand the retirement strategies available. 

When you meet with a Napa Valley attorney at our office, we’ll review your goals for retirement, including what age you’re targeting, what you expect your bills to cost, and what your income sources are. Then, we’ll create a strategy to work toward the $1 million or more you likely need to retire. If you’re ready to use our legal services to plan for your future, contact an estate planning lawyer at our Napa, CA office.

Does Your Employer Offer Retirement Plans?

For many people, the easiest way to start saving for retirement is through an employer-sponsored plan, which is typically a 401(k). One benefit is that you won’t pay income tax when the money is taken out of your check and placed into the 401(k), so this option will lower your income tax liability. Another advantage is the higher rate of return compared to a savings account. 

Some employers match a percentage of 401(k) contributions, meaning if you put 5 percent of your income into the account, your employer will do the same for you. 401(k) matching is an easy way to grow your retirement funds, so take advantage of this option if your job offers it. 

Keep in mind there is an annual limit to how much you can put into your 401(k). It often changes depending on the year, but for 2023, it’s $22,500 if you’re under age 50. If you’re over 50, you can make catch-up contributions of an extra $7,500 annually. 

A skilled Napa County estate planning lawyer will advise you on setting up employer-sponsored retirement plans. Be sure to also find out if your job has pension plans, as some Napa, California employers offer these. If yours does not have much help regarding retirement planning, an estate planning attorney from our Napa County firm can give you guidance.

Should You Open an IRA?

Another financial planning tool is an individual retirement account, or IRA. There are two types of IRAs to choose from. A traditional IRA is similar to a 401(k), with a comparable growth rate and a tax break the year you contribute. With both types of accounts, you’ll be taxed when you withdraw the money as you retire, but one difference is that an IRA has lower annual contribution limits than a 401(k). In 2023, the maximum you can add to an IRA is $6,500 if you’re under age 50. 

If you’re not counting on a tax break now and want your withdrawals to be tax-free when you retire, you can open a Roth IRA. This is recommended if you think your tax bracket will be higher when you take your first withdrawal, since you’ll save money by being taxed now at a lower rate. Another benefit of a Roth IRA is that you won’t face minimum required distributions around retirement age like you would with a traditional IRA or 401(k), which require you to withdraw money in your early 70s. 

Some of the main differences between these accounts involve how the taxes are handled, so you should get tax planning advice from a Napa Valley attorney before you make a decision. Contact our Napa firm to learn which options are the most tax efficient and beneficial for you.

What Are the Benefits of a Standalone Retirement Trust?

As you get legal aid from a Napa Valley estate planning attorney, you might hear about another way to safeguard your assets: a standalone retirement trust. This involves putting your retirement accounts into a trust and naming your children, grandchildren, or other loved ones as the beneficiaries. 

The reason for this is to reduce the impact of the taxes your beneficiaries must pay when they get the assets, as a standalone trust can defer income tax as the account grows. As long as your beneficiaries only take the minimum required distributions, the tax burden should remain low and the assets will be protected from creditors or former spouses. 

However, one downside of putting retirement accounts in a standalone trust for your children is that if they withdraw the money early, they’ll lose a lot to taxes and miss out on the chance to grow the account for years. They’ll also lose the asset protection of the trust, making the funds available to creditors, lawsuits, and divorce proceedings. 

To protect your loved ones from these risks, a Napa Valley attorney may advise you to set up an IRA Legacy Trust with rules to promote tax-deferred growth and asset protection. Contact our Napa Valley firm to learn more about the retirement and estate planning tactics we recommend.

How Can Retirement Planning Lawyers in Napa, California Assist You?

If you’re looking for strategies to save money for retirement while ensuring your family is taken care of when you pass away, you’ll benefit from a consultation with a knowledgeable attorney at Celaya Law. At our Napa Valley law office, our lawyers proudly offer legal services to clients who have questions about probate law, estate planning, business succession planning, and more. 

We’ve provided legal services to residents of Napa Valley for years, so we’re familiar with the common concerns clients in this area have as they consider if they can afford to retire. If you’re ready to get legal aid from a professional, caring team, call our Napa, CA office at 707-754-0977 to discuss your estate and retirement planning goals.

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