#rothira #investing #retirementplanning
Most of us know of the Roth IRA being a tax-free investment. But is there ever going to be a circumstance where the government changes the rules and makes Roth IRAs taxable down the road?
Stay tuned as Logan breaks down some common misconceptions about Roth IRAs and sheds light on the concerns about potential government changes. Stay tuned as Logan breaks down the facts and provides insights into why, contrary to popular belief, there are indications that the government actually favors Roth IRAs.
Want to learn more about financial planning? Please subscribe to our channel and you won’t miss a video ➟
_______________________________
CONNECT 🤝
Facebook:
Twitter:
LinkedIn:
_______________________________
CONTACT ☎
Website:
Phone: (951) 652-1544
Email: info@ruggierifinancial.com
Appointment: …(read more)
LEARN MORE ABOUT: IRA Accounts
TRANSFER IRA TO GOLD: Gold IRA Account
TRANSFER IRA TO SILVER: Silver IRA Account
REVEALED: Best Gold Backed IRA
The Roth IRA is a popular retirement savings vehicle that offers unique tax advantages to investors. Unlike a traditional IRA, contributions to a Roth IRA are made after-tax, meaning that withdrawals in retirement are typically tax-free. This can be an attractive option for those looking to minimize their tax burden in retirement.
However, some investors may wonder if their Roth IRA will ever be taxed in the future. The short answer is that it is highly unlikely, but there are a few scenarios in which taxes could potentially be owed.
One such scenario is if the Roth IRA is not held for the required amount of time before withdrawals are made. In general, a Roth IRA must be held for at least five years before withdrawals can be made tax-free. If withdrawals are made before this time period, they may be subject to taxes and penalties.
Another scenario in which taxes could be owed on a Roth IRA is if the investor passes away and the account is left to a non-spouse beneficiary. In this case, the beneficiary may be required to take distributions from the account and pay taxes on those distributions.
Additionally, if the investor makes excess contributions to their Roth IRA or exceeds the income limits for making contributions, they may be subject to taxes on those excess contributions.
It is important for investors to stay informed about the rules and regulations governing Roth IRAs to ensure that they are making the most of this valuable retirement savings tool. Consulting with a financial advisor or tax professional can also help investors navigate any potential tax implications related to their Roth IRA.
Overall, the Roth IRA is a powerful tool for saving for retirement with the potential for tax-free withdrawals in the future. By understanding the rules and guidelines surrounding Roth IRAs, investors can make the most of this valuable savings vehicle and minimize their tax burden in retirement.
unless i start making upwards of 500k per year, i'm definitely going to be in a higher tax bracket when i retire lol
Here is another though on Roths. In Ohio, they are talking about getting rid of income tax and going with a higher sales tax. Boom, now my roth IRA will be taxed in theary because no one is paying state tax but I'll now have to pay higher sales tax like everyone else. Essentially taxing my Roth at the state level.
We have Democrats, so expect that it will be taxed. They're already talking about taxing unrealized gains, so they'll come for the Roth IRA soon enough. And they'll call you "rich" for having one.
I didn’t contribute much to Roth, choosing to save taxes today in order to contribute more to our retirement accounts. It enabled us to save an additional $200,000 which on average provides $10,000 3:31 /year income. I will be 80 before RMDs have me paying that much. At that point I will use QCD to minimize taxes.