Posted on January 6, 2020

December 9, 2019: Wealth Matters: “Working vs. Retirement and Tax Planning”


There are tools that you want to put in place in your 20s so that you are prepared for your 50s and 60s. Planning you can do ahead of time allows you to have more runway to plan properly.

Distributions from traditional IRAs and employer sponsored retirement plans are taxed as ordinary income and, if taken prior to reaching age 59½, may be subject to an additional 10% IRS tax penalty. Converting from a traditional IRA to a Roth IRA is a taxable event. A Roth IRA offers tax free withdrawals on taxable contributions. To qualify for the tax-free and penalty-free withdrawal of earnings, a Roth IRA must be in place for at least five tax years, and the distribution must take place after age 59½ or due to death, disability, or a first time home purchase (up to a $10,000 lifetime maximum). Depending on state law, Roth IRA distributions may be subject to state taxes.

For a comprehensive review of your personal situation, always consult with a tax or legal advisor. Neither Cetera Advisor Networks LLC nor any of its representatives may give legal or tax advice.

All investing involves risk, including the possible loss of principal. There is no assurance that any investment strategy will be successful.

In today’s episode, Debbie talks about Working vs. Retirement and Tax Planning. Listen below!

Have a question about financial planning in Saddle River, NJ?

Click here to schedule your complimentary phone consultation!