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Roth IRA vs. Traditional IRA: A Comparison


Do you understand the afforded to you when investing in a ? In this video, Patrick walks through: 1️⃣ The of each tax qualification. 2️⃣ When it may make sense to a traditional IRA to a Roth IRA. 3️⃣ How your would be affected by inheriting each account type. you would like to address with Patrick or the Landing Financial Group crew directly? Book a complimentary phone call 📞 here 👇 If you enjoyed this content, please , , ! ⭐ ⭐ - Facebook: - LinkedIn: - Instagram: #rothconversion #rothira #rothiraconversion DISCLOSURE: We are an independent financial services firm helping individuals create retirement strategies using a variety of investment and insurance products to custom suit their needs and objectives. Investment advisory services offered only by duly registered individuals through AE Wealth Management, LLC (AEWM). AEWM and Landing Financial Group are not affiliated companies. Investing involves risk, including the potential loss of principal. No investment strategy can guarantee a profit or protect against loss in periods of declining values. None of the information contained on this YouTube channel shall constitute an offer to sell or solicit any offer to buy a security or any insurance product. 1242198 - 3/22...(read more)



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Roth IRA vs Traditional IRA: Understanding the Differences When it comes to planning for retirement, having a robust savings strategy is essential. Individual Retirement Accounts (IRAs) are popular options for saving money for retirement due to their tax advantages. However, there are two main types of IRAs: the Roth IRA and the Traditional IRA. Understanding the differences between these two types is crucial, as they can have a significant impact on your retirement savings. One of the main differences between a Roth IRA and a Traditional IRA lies in how they are taxed. With a Traditional IRA, contributions are typically tax-deductible in the year they are made. However, when you withdraw money from the account during retirement, it is considered taxable income. This means that you will have to pay taxes on the funds that were originally contributed and the earnings your investments have generated over the years. On the other hand, a Roth IRA works differently. Contributions to a Roth IRA are made with after-tax income, meaning that they are not tax-deductible. However, when you reach retirement age and start withdrawing funds, these withdrawals are generally tax-free. This difference in taxation can have significant implications depending on your current financial situation and your expectations for your retirement income. Another key difference between the two types of IRAs is the eligibility criteria. While anyone with earned income can contribute to a Traditional IRA, there are income limitations for contributing to a Roth IRA. In 2021, the maximum income allowed for full Roth IRA contributions is $125,000 for single filers and $198,000 for married couples filing jointly. If your income exceeds these limits, you may still be eligible for a partial contribution or a technique called a "backdoor Roth IRA," which involves making a nondeductible contribution to a Traditional IRA and then converting it to a Roth IRA. Furthermore, there are different rules regarding required minimum distributions (RMDs) for the two types of IRAs. Traditional IRAs require you to start taking RMDs once you turn 72, whereas Roth IRAs do not have this requirement. This means that if you have a Roth IRA, you can potentially leave the account untouched for a longer period, allowing your savings to continue growing tax-free. Deciding between a Roth IRA and a Traditional IRA requires careful consideration of your financial goals, tax situation, and retirement plans. If you expect your tax rate to be lower in retirement or if you need the tax deduction now, a Traditional IRA might be more suitable. On the other hand, if you predict your tax rate to be higher in the future or if you want the flexibility of tax-free withdrawals during retirement, a Roth IRA might be the better option for you. It's worth noting that it is also possible to diversify your retirement savings by having both a Roth IRA and a Traditional IRA. This way, you can benefit from the advantages of each account and maximize your flexibility when it comes to taxes. In conclusion, the choice between a Roth IRA and a Traditional IRA depends on your individual circumstances, taxes, and retirement plans. Both types of IRAs offer valuable advantages, and careful consideration is necessary before making a decision. Consulting with a financial advisor can be beneficial to help assess your specific situation and guide you towards the best choice for your retirement savings. https://inflationprotection.org/roth-ira-vs-traditional-ira-a-comparison/?feed_id=115613&_unique_id=64aa8ca353f68 #Inflation #Retirement #GoldIRA #Wealth #Investing #AssetProtectioninRetirement #FinancialFlightPlan #FinancialPlannerinFlorida #FloridaFinancialAdvisors #HowtoPreserveMoneyinRetirement #HowtoRetireinFlorida #KristiKnight #LandingFinancialGroup #MoneyManagerinFlorida #PatrickSandner #RetirementPlannerinFlorida #RetiringinFlorida #RothIRAandtaxes #rothiravstraditionalira #taxfreeretirementincome #TaxPlanning #taxes #TraditionalIRAandTaxes #WhentotakeSocialSecurityinFlorida #TraditionalIRA #AssetProtectioninRetirement #FinancialFlightPlan #FinancialPlannerinFlorida #FloridaFinancialAdvisors #HowtoPreserveMoneyinRetirement #HowtoRetireinFlorida #KristiKnight #LandingFinancialGroup #MoneyManagerinFlorida #PatrickSandner #RetirementPlannerinFlorida #RetiringinFlorida #RothIRAandtaxes #rothiravstraditionalira #taxfreeretirementincome #TaxPlanning #taxes #TraditionalIRAandTaxes #WhentotakeSocialSecurityinFlorida

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