The 19 Sources of Retirement Income: Roth IRA Income
In this roth income limits episode, John continues his series on the 19 Sources of Retirement Income, explaining how to create a tax-advantaged income stream from your Roth IRA in retirement.
John is the author of 5 Ways Your Wealth is Under Attack and It’s Your Wealth – Keep It.” He has lectured extensively on financial planning and is a recipient of the Five StarSM Wealth Manager Award.
Don’t miss John’s key points:
- Roth IRAs, unlike traditional IRAs, provide tax-free income in retirement.
- Withdrawals from traditional IRAs, by contrast, are taxed according to your regular income tax bracket.
- A Roth IRA is a powerful tool. The money you put into it grows tax-free, and your distributions in retirement are not taxed.
- If you want to wait to use that income, you can: Roth IRAs have no Required Minimum Distributions (RMDs)—unlike a traditional IRA. That means you can let your money compound from the age of 50 to 100+, and never have to take any money out.
- There are income caps on Roth IRAs, so another good option is an employer-sponsored Roth 401(k). This has no income caps and much higher caps on contributions than a Roth IRA.
- The sole purpose of tax deferral is to defer from a high bracket to a low bracket. If you end up in a higher tax bracket in retirement than you are right now, your traditional IRA may not serve you well.
For more, listen above. Then download our 19 Sources of Retirement Income and find out more ways to increase your retirement income. If you are new to Smallwood Wealth, schedule a Wealth Curve Conversation by clicking this link.
You can also connect with us on social media, or call us at (800) 797-1000. Set up a free, no-obligation 30-minute phone call with an advisor. Let’s discuss how to get more Roth income into your plan.
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