– Tax Rates, Tax Brackets, deductions and opportunities constantly change.
– This is no such thing as a truly permanent tax law.
– Tax-Diversification is beneficial as your wealth increases.
There are 3 ways to make contributions to a Roth-type of an account:
- Roth IRA
- Roth 401K
- Roth IRA Conversion (Click here to view our 90-second video – When Does a Roth Conversion Make Sense?)
- Roth IRA Contributions; if you qualify from an earned income standpoint – DO IT!
- Single filers can make a full contribution if adjusted gross income is under $125,000 or a partial contribution if between $125K and $140K.
- Joint files can make a full contribution if adjusted gross income is under $198,000 or a partial contribution if between $198K and $208k
- Roth 401K Contributions: There is no income limit to contribute. Check to see if you plan offers this option, as more and more 401K’s are doing so. If so, you should make at least a portion of your contributions to the Roth option.
- Roth IRA Conversions; There are no income limits to qualify, and you can convert as much or as little as desired.
Imagine… a little later in life, having funds you can actually withdraw, without having any income tax consequences (Rules must be followed).
To discuss how you may benefit from a Roth, schedule your complimentary consultation today.
Don’t wait… taxes don’t!
