Before knowing how to enter your retirement, it is important to understand how it works. To have this benefit, which is actually a right of Americans who always work and generate income for the country, it is necessary that the entry of papers for the regularization of the retirement is made before old age, that is, now, while there is still a presence in the labor market and thus it is possible to gain time and get extra money.

In the United States, there are two main rules for applying for retirement: minimum age of 67 years for men and women — unlike other countries in the world, which normally have a minimum age for women under the age of men, so men have more working time. In America there is no such distinction: both retire at the same age. The second rule is the pension contribution time.

Social security must receive an amount for time worked and this happens when the worker is regularized in a company or has his own business recognized. This is only possible legally, that is, illegal work that is not recognized by the government of the United States or informal jobs without regularization are not accepted in social security as contribution time.

Now that you understand a little more about the main rules of retirement so that you and your work are legalized, we will teach you how to access the tax incentives offered by the United States for those who want an individual pension plan, which also is affordable and free from unfair fees or the non-existence of fees, like the Roth Ira.

Roth Ira

The Roth Ira is an individual retirement account and has a very similar scheme to the Traditional Ira, both are free from government taxes, but as long as the conditions you have access to when you file your retirement application are accepted and respected with rigor, because the US government is very strict with tax surveillance and even stricter with tax exemption rules.

Accessibility

Still talking about Roth Ira, we need to address its conditions, which are increasingly being sought after by Americans when opening their individual pension account. One of the most popular and inviting conditions that make people choose Roth Ira is because it is affordable. This is because to be part of Roth Ira one cannot have a profit stipulated by the government, that is, poor people are more accepted by this type of pension.

Facility

The other reason why Roth Ira is becoming popular in the United States is  because it is a very easy pension plan to find. It is the pension plan most offered by companies and banks, so there is not a lot of bureaucracy to understand the processes of this type of social security, which is encouraged both by the public sector through the government itself and by the private sector through companies and banks.

Differentiation

The fees that are paid by Roth Ira work the opposite of most pension plans where people pay for cash withdrawals or pension changes. The Roth Ira taxpayers do not pay for withdrawals, the only tax that exists is on the entry of money, i.e., taxation occurs when the taxpayer earns and invests in the account and not the other way around, this helps to encourage the contribution of individual pensions.

Now that you know better the pension system in the United States and when it comes to retirement, we cannot address it in general because the government offers plans with different conditions according to people’s needs, you can organize yourself better and think about your future with a pension plan like Roth Ira or one that better fits your personal circumstances.