.

Simple IRAs can now be ROTHs.

Listen to the Director of Business Benefits and Wealth Management Advisor, Ken Speroni, of Taylor Financial to know more about .

#taxes #finance #financialplanning #investments #leadership #buildingthroughserving #smallbusiness…(read more)

LEARN MORE ABOUT: IRA Accounts

CONVERTING IRA TO GOLD: Gold IRA Account

CONVERTING IRA TO SILVER: Silver IRA Account

REVEALED: Best Gold Backed IRA

The ROTH simple IRA has become a popular retirement savings option for many Americans. With the passage of the Secure Act 2.0, this type of retirement account has become even more attractive.

One of the most significant changes of the Secure Act 2.0 is the extension of the age for required minimum distributions (RMDs) from 72 to 75. This means that individuals who have not reached the age of 75 can continue contributing to their ROTH simple IRA and not be required to take RMDs until three years later.

Another change that Secure Act 2.0 has brought is the ability to contribute to a ROTH simple IRA at any age. Previously, individuals were not able to contribute to a traditional IRA after the age of 70 ½. Now, there is no age limit for contributing to a ROTH simple IRA, making it a more flexible option for retirement savings.

Additionally, Secure Act 2.0 allows employees to use their ROTH simple IRA to pay for birth or adoption expenses, without incurring the 10% early withdrawal penalty. This provides families with greater flexibility and options when faced with significant life events.

One caveat to keep in mind is that ROTH simple IRAs are subject to income limitations. For 2021, employees must have a modified adjusted gross income (MAGI) of less than $140,000 (single) or $208,000 (married, filing jointly) to contribute to a ROTH simple IRA. However, for those who do qualify, the tax-free growth potential and potential to withdraw funds tax-free in retirement make ROTH simple IRAs an attractive option.

Overall, Secure Act 2.0 has made the ROTH simple IRA more accessible and flexible, providing potential benefits for retirement savings and expenses related to life events. As always, it is important to consult with a financial advisor to determine the best retirement savings strategy for your individual needs and circumstances.