To take your Roth account distributions without having to pay income tax, you must have had your money in the account for at least five years, and must meet only one of the following conditions:
- You must be 59 ½ years old at the time of the withdrawal
- You must be making the withdrawal because of a disability
- You must me making the withdrawal in order to pay first-time home buyer expenses (maximum withdrawal is $10,000)
- The withdrawal must be made by your estate of by your beneficiary in the event of your death.
The fact that you can take money from your Roth IRA or 401(k) without taxes and without penalties makes these options so attractive for retirement saver. And while a traditional IRA or 401(k) requires you to take a minimum amount of money out each year, there’s no such requirement with the Roth plans. You can wait to take out money until you want or need to, and you can even leave the funds untouched and pass them along to your chosen beneficiary at your death.
IRA contribution limit for year 2019 is $6000 or $7000 if you are age 50 or older vs 401(k) contribution limit for year 2019 is $19,000 or $25,000 if you are age 50 or older..
The benefits of Roth IRA and 401(k) plans can also be realized through cash value life insurance like dividend paying whole life insurance policy. In addition to death benefits, good rates of return, and tax-free withdrawals, this kind of whole life insurance plan allows you contribute more than the IRA and 401K limits with the same tax advantages.
Our experience retirement specialists can provide you detailed information on these different retirement savings options. Please call (877) 972-3262 to speak with a retirement specialist or complete your personalized retirement savings proposal now.
Investment and wealth creation is much harder than most people think or even understand. The founder of world’s largest hedge fund and 25th richest man in USA, Ray Dalio says to Bloomberg that “it is harder to win in stock market than competing in Olympics”. We have been helping more 3000 physicians, 1000 dentists, 3000 successful business owners and 600 independent pharmacy owners create most optimal asset allocation, reduce taxes and create sizable wealth for last 18 years. We don’t have magic wand but we know thing or two that works. If this something you want for yourself then please call (877) 972-3262 or complete contact us form now.