Dollars and Diagrams

A Roth 401k is NOT a Roth IRA … A Practical Example

Roth IRA

Let’s consider that you are contributing to your companies Roth 401k and you do so for a number of years. Eventually, you decide to retire at age 62.

You decide to open a Roth IRA and facilitate a rollover from your Roth 401k.

You now want to take funds out of your Roth IRA (after all you have attained age 59 ½) and pay off your house.

Buyer beware. Remember the Roth IRA also carries a 5-year requirement. You must attain age 59 ½ AND have the Roth IRA open for 5 years to avoid a penalty on the gains.

You can always withdraw your contributions penalty-free but have to meet the rule above to get out earnings penalty-free!

IMPORTANT INFORMATION

Information in this material is for general information only and not intended as investment, tax, or legal advice. Please consult the appropriate professionals for specific information regarding your individual situation prior to making any financial decision.

LPL Tracking #1-05157060

Categories

College Planning

Disability Insurance

Estate Planning

Insights

Investments

Life Insurance

Retirement Funding

Roth IRA

FREE STUFF

Ready To Get A Plan To Conquer Your Finances Once And For All?

Your 1-Page Financial Fortress Blueprint Is The First Step. Click Below To Learn More.

graphic 10 actions to take

10 Actions To Take 10 Years Before Retirement

In this paper we discuss 10 actions you should take to develop and deploy a successful long-term wealth plan. It will help you make decisions about your financial journey today and well into your retirement chapter.

Success! Check your email inbox for next steps!

Pin It on Pinterest

SCHEDULE A CALL