The big difference between the Roth IRA and other retirement accounts is that rather than receiving a tax break for monies placed into the account, you receive the tax break when you withdraw the money. Why is this difference important? Like any other choice based around tax issues, the more funds that have a tax advantage, the better the net results. Using a Roth IRS’s long term accumulation allow for blending this tax free income with other assets which may have more tax liability.
Learning to manage your 401(k) can provide huge benefits The creation of 401 (k) plans was essentially an accidental byproduct of the Revenue Act passed by Congress in 1978. This act included a provision that was added to the IRS Code (section 401 (k) allowing employees to avoid taxation on deferred compensation. A savvy benefits [...]
Learn how to gain the greatest benefit from your IRA If you own an IRA, you are probably aware of how confusing these plans can be. A recent change in the rules regarding IRAs has caused many IRA owners to misuse their plans. Here are some basic questions regarding IRAs and how they may [...]
If you are considering converting your IRA to a Roth IRA make sure you know the details I’ve been blessed to talk about Retirement Planning on my weekly radio show for almost a decade. My show airs four times per week on multiple stations. One of the most common questions I am repeatedly asked is, [...]
Learn the rules to avoid a tax mistake when you roll over your Individual Retirement Account Individual Retirement Account (IRA) rollover is a tax-free distribution from one retirement account to an IRA. It allows your savings to continue accumulating, tax-deferred. An IRA rollover comes in handy if you'd like to consolidate your retirement plans into [...]
To Roth or not to Roth, that is the question Most people are very well aware of the benefits of building a retirement nest egg using a Roth IRA. One of the less well known aspects of a Roth IRA is how it can be used for estate planning. This is probably because of [...]
When you consider what it takes to establish a successful retirement plan, what comes to mind? Is it your annual rate of return; the safety of your principal; having a balanced portfolio; guaranteed income for life? While all above are important, they are not the most critical factors that will determine whether you will run [...]