Services

Estate Planning Strategies

Everyone could use an estate plan. It’s not about what you own – but putting you in control. Here’s some helpful information to think about.

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Insurance

Insurance can play a key role in helping preserve your assets and achieve your financial goals. Plan to help protect all aspects of your financial life: family, business, retirement, and legacy.

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Advisory Services

Our Advisory Services can help you save time managing investments. Find out how we can offer financial guidance and help you keep up with the markets. Our programs allow flexibility in how much your professional portfolio manager does for you or with you.

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Individual Retirement Account (IRA)

• You can benefit from tax-advantaged investing in an IRA.
• Consider contributing to an IRA even if you participate in a qualified employer sponsored-retirement plan (QRP).
• Find out which type of IRA – Traditional or Roth – is right for you.

IRAs can help you meet your retirement goals

Even if you already participate in a qualified employer sponsored-retirement plan (QRP) such as a 401(k), 403(b) or governmental 457(b), an IRA can help supplement these savings. Similar to a 401(k), IRAs offer the potential for growth in a tax-advantaged account. Over time, that can make a significant difference in your retirement savings.

Types of IRAs

Both Traditional and Roth IRAs offer tax advantages, a wide variety of investment options, the flexibility to choose whether or not to invest annually, and the same contribution limits. 

• Traditional IRA - Offers tax-deferred growth potential. You pay no taxes on any investment earnings until you withdraw or “distribute” the money from your account, presumably in retirement.¹ Additionally, depending on whether you’re covered by a retirement plan with your employer and your income, your contribution may be tax deductible.¹ 
• Roth IRA – Offers tax-free growth potential. Earnings are distributed tax-free in retirement, if a five-year waiting period has been met and you are at least age 59½, or as a result of your death, disability, or using the first time homebuyer exception. Since contributions to a Roth IRA are made with after-tax dollars, there is no tax deduction regardless of income. 
• Who can contribute to an IRA - You and your spouse, if filing jointly, can contribute to a Traditional IRA if you have earned income. You can make a non-deductible contribution to a Traditional IRA even if your income exceeds Modified Adjusted Gross Income (MAGI) deduction limits. You and your spouse, if filing jointly, can contribute to a Roth IRA at any age as long as you have earned income and are at or under MAGI phase-out limits. 
• Small business SIMPLE & SEP IRAs - SEP IRAs and SIMPLE IRAs are often offered by small businesses as a retirement plan for their employees. These plans can be ideal for small businesses with a few employees. A SEP IRA is a Traditional IRA that holds employer contributions under the SEP plan.²

IRA contribution limits and deadlines

IRS rules state how and by what date you can make your IRA contributions. IRA contributions must generally be made by April 15 for the prior tax year. If you are 50 or older, within a particular tax year, you can contribute an additional $1,000 catch-up amount each year indexed for inflation ($1,100 in 2026).

Call us to discuss the exact date for this year and the amount you can contribute, or check out IRS Publication 590 found here:

• IRS Publication 590-A 
• SEP Plan FAQs

Retirement plan distribution options 

When you change jobs or retire, you generally have four options for your retirement plan assets:

1. Roll assets to an IRA
2. Leave assets in your former employer’s plan, if the plan allows
3. Move assets to your new/existing employer’s plan, if the plan allows
4. Cash out through what’s called a “lump sum distribution,” pay taxes and perhaps a 10% IRS tax penalty

There are advantages and disadvantages to each option. The best one for you depends on your individual circumstances.³  Since your retirement plan savings may represent a substantial source of income in retirement it’s important to think about all of the following:  

• The difference in fees and expenses between the QRP and IRA
• When penalty-free distributions are available
• Your need for help making investment decisions and other services offered
• Any special considerations regarding your employer stock
• Timing of required minimum distributions (RMDs)
• Protection of assets from creditors and bankruptcy

We can sit down and look at your choices together so you can decide which one makes the most sense for you. Before you make any decision or take any action, speak with your current retirement plan administrator and tax professional. 

Next steps

• Make an appointment with us to go over your IRA choices.
• Fund your IRA.
• Find out if you can deduct your Traditional IRA contribution. 

¹Traditional IRA distributions are generally taxed as ordinary income. Qualified Roth IRA distributions are federally tax-free provided a Roth account has been open for five years or more and the owner has reached age 59-1/2 or is disabled or using the first-time homebuyer exception or taken by their beneficiaries due to their death. Qualified Roth IRA distributions are not subject to state and local taxation in most states. Distributions from Traditional and Roth IRAs may be subject to IRS 10% additional tax if distributions are taken prior to age 59-1/2.

²For SIMPLE IRAs, withdrawals are subject to ordinary income tax and may be subject to an IRS 10% additional tax for early or pre-59 ½ distributions. The additional tax increases to 25% if taken during the first two years of plan membership.

³Please keep in mind that rolling over assets to an IRA is just one of multiple options for your retirement plan. Each of the following options is different and may have distinct advantages and disadvantages.

1. Roll assets to an IRA
2. Leave assets in your former employer’s plan, if plan allows
3. Move assets to your new/existing employer’s plan, if plan allows
4. Cash out or take a lump sum distribution 

When considering rolling over assets from an employer plan to an IRA, factors that should be considered and compared between the employer plan and the IRA include fees and expenses, services offered, investment options, when penalty free withdrawals are available, treatment of employer stock, when required minimum distributions begin and protection of assets from creditors and bankruptcy. Investing and maintaining assets in an IRA will generally involve higher costs than those associated with employer-sponsored retirement plans. You should consult with the plan administrator and a professional tax advisor before making any decisions regarding your retirement assets.

College Savings Plans

• Saving for your child’s or grandchild’s education doesn’t have to derail your retirement savings plan.
• 529 plans and trust funds are designed to help save for a child’s education.
• Financial aid may be another option

Retirement vs. education

As a parent or grandparent, you’re probably considering how to balance paying for college while planning for your retirement. Many families use some combination of savings, investments, borrowing, and financial aid (if available). 

There are options for financing college, but Wells Fargo Advisors believes  saving for retirement should be the higher priority for many investors. 

If your employer offers a 401(k) plan, consider putting your savings there first, especially if there is a company match. After that, contribute to your child’s education account. 

Save as early as possible

As you can imagine, the sooner you start saving for your child’s or grandchild’s education, the more money you may have later. 

One popular way to save is the 529 college savings plan. These are tax-advantaged accounts administered by states and institutions. Parents, grandparents, relatives, and friends can contribute.  

Other college savings accounts include custodial accounts in the child’s name and Coverdell Education Savings Accounts. 

Please consider the investment objectives, risk, charges and expenses carefully before investing in a 529 savings plan. The official statement, which contains this and other information, can be obtained by calling your Financial Advisor. Read it carefully before you invest. 

Qualified Coverdell Education Savings Account distributions are not subject to state and local taxation in most states.

Establish an educational trust fund 

Setting up an educational trust fund designed for your child’s education is also an option. When a grandparent or benefactor establishes an education trust, the terms of the trust can be specified. This can include who controls the money, how it will be used, and for whom the trust benefits. 

It’s a good idea for grandparents to involve parents when it comes to helping with college savings. How they choose to save could impact any potential financial aid the child may receive. 

Consider financial aid 

A variety of factors play into financial aid eligibility. Don’t assume your child or grandchild won’t qualify for financial aid.  

Start thinking about applying for aid during high school. Visit the U.S. Department of Education’s Financial Aid Office for information about eligibility requirements, application deadlines, and types of federal financial loans and aid. 

For nonfederal financial aid, visit the College Board’s College Scholarship Service (CSS)/Financial Aid PROFILE® application for information on qualifying. 

Factor in income and existing investments 

Other investment sources may help pay for college, and keep you from tapping your retirement savings. Those may include stocks, bonds, and mutual funds.

It’s a balancing act 

As you plan for the future, keep in mind the three C’s of college funding: consistency, communication, and compromise. 

Planning for retirement, managing your investment portfolio, and funding a college education is a balancing act. The trick is to plan ahead. 

We can help you come up with a plan that considers all aspects.

Next steps 

• Ask us how you can save for both retirement and education.
• Start saving for college when your child or grandchild is young.
• Even if you don’t think you’ll qualify, apply for financial aid.

Trust Services are available through Wells Fargo Bank, N.A. Member FDIC and Wells Fargo Delaware Trust Company, N.A.  Wells Fargo Advisors and its affiliates do not provide legal or tax advice.

Looking Ahead

Looking for a fast way to stay up to date? How the markets performed over the last week and what may happen next week all...

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Investment Products

Developing your investment plan includes choosing which products and services might help you meet your financial goals. Review some of the selections we offer to our clients. We can discuss what might work for your situation and help you as you work toward achieving your goals.

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Why You Should Consider Working With Us

As in most industries, there are professionals who specialize in working with clientele facing a certain circumstance or seeking a specific outcome. 

Our firm has an in-depth understanding of serving the needs of high net-worth individuals and organizations.

Partnering with us means you will have someone working on your behalf who is:

• An early adopter of products and strategies best suited for substantial wealth

• Continually trained on topics of specific interest, including charitable giving and business succession planning

• Able to escalate support for services and products

• A participant of exclusive events focusing on Private Wealth matters

We believe these pillars of Access, Education and Support differentiate our ability to help you accomplish your complex, multi-dimensional wealth needs.


Wells Fargo and Company and its Affiliates do not provide tax or legal advice. Be sure to consult with your tax and legal advisors before taking any action that could have tax consequences.