An Individual Retirement Account is a tax-advantaged account that is designed to help you save for retirement. There are two different types of IRAs: Traditional and Roth IRAs.
Funds going into a traditional IRA are pre-tax. Money earmarked toward a Roth IRA is after-tax. Earnings on traditional IRAs are tax deferred. Roth IRA earnings are not taxed, with some early withdrawal exceptions.
You'll pay that 10% penalty on any funds you take out of a traditional IRA, with some exceptions, before turning 591/2.
Once you turn 701/2 in the calendar year, you are no longer eligible to contribute to a traditional IRA. The government wants you to start withdrawing from it instead, through required minimum distributions (RMDs), and pay taxes on it. A Roth IRA, on the other hand, does not have RMDs and can be passed on to your heirs without a tax penalty.
If you are now, or soon will be taking Required Minimum Distributions from your IRA we would like to have an appointment with you. We have shown our clients how to significantly increase their IRA income so that they can live the retirement they had dreamed. The extra money our clients receive is often considered by them as a “play check” that they use to travel, entertain, or even money to spoil their grandchildren. What would you do with your extra income? We would love the opportunity to hear your dreams.
At Roth + Company we can answer your retirement questions. We can help you rollover or consolidate assets from old 401k providers and other firms, making it it a hassle-free process. We can help you achieve predictable, sustainable lifetime income streams.