When you set up an IRA, you’ll need to choose between two main types:Roth IRAandTraditional IRA. At first glance, these two types of IRAs seem very similar. However, there are some key differences that can affect how much money you’ll have available to you in retirement. ...
Solo 401(k) accounts can be traditional or Roth accounts, which give you control over when you pay taxes, your contributions, and your distributions. 4. Loan Provisions One unique benefit of 401(k) plans is that they commonly include loan provisions. These loan provisions allow you to borr...
Joe Udo
So many retirement questions have no right answers. They’re simply judgment calls. In this episode, we’ll explore whether it makes sense to switch to a Roth 401K. Don’t listen to find out the answer. Listen to learn the process to use to come up with your own answer. OUTLINE OF ...
Your portfolio is 50% in aRoth IRA and 50% in a traditional IRA(let's say $100K in each). You have one asset class that you expect an 8% return from (let's call this one stocks) and one that you expect a 5% return from (let's call this one bonds). Let's assume you'll ...
Traditional IRA or Roth IRA:IRAs are special retirement accounts. You cannot withdraw the funds early or you'll face a penalty. There are two types of IRAs:Traditional IRA contributions are tax deductible, but you pay taxes when you withdraw the funds. Roth IRA contributions are made with ...
If you can't contribute to a Roth IRA or want to contribute more than what the IRS allows you to do for the Roth IRA, the only other option you have is cash value life insurance, which we generally use Indexed Universal Life (IUL) for our preferred vehicle. ...
Incidentally, this is why you should never borrow from a Roth 401(k). A Roth account is funded with after-tax dollars, but the account grows tax-free. That means, in the example above, Sarah gets to withdraw the full $100,000 if she waits an extra decade. ...
For those who want to go even further,there are several optionsfor other retirement accounts. A popular choice is atraditional IRA or a Roth IRA. An IRA is a retirement plan that anyone can set up and contribute to, unlike a 401(k). For a traditional IRA, you contributepretaxdollars, ...
Typically, yes. 401(k) accounts are funded with pre-tax dollars and therefore have adeferred tax liability. That means that investment gains and income - including annuity income - would be taxed at your income tax bracket at the time. If the annuity sits in aRoth 401(k)that is funded ...