Roth IRA vs. 401k: Which Is Better?- Episode 128
So you’ve got some money to save for retirement… Where should you put it?
Would it be better for you to take a tax deduction right now by contributing to your 401k plan, or would paying the taxes now and socking it away in the Roth, with the potential to take it out tax free later on, be a wiser course of action? This is a common dilemma for many people.
What may be the better option for you? Find out from podcast host Johnny Dean and “Professor” Rick Plum, CFP® what you need to know in order to make that decision on this week’s episode of Managing Your Financial Future!
Important Information:
The information provided should not be considered specific tax, legal, or investment advice and is not specific to any individual’s personal circumstances.Each taxpayer should seek independent advice from a tax professional based on his or her individual circumstances.
IRA withdrawals will be taxed at ordinary income rates. Withdrawals prior to age 59½ may also be subject to a 10% penalty tax.
Roth IRA distributions of principal from a Roth IRA are tax-free; however, any earnings will be taxed at ordinary income rates and a 10% penalty tax will apply if withdrawn prior to age 59½ or within five years of the date the Roth IRA was established, whichever is longer.
Rick Plum is a registered representative with, and securities and advisory services offered through LPL Financial, a registered investment advisor and member FINRA/SIPC. The investment professionals are affiliated with LPL Financial and are conducting business using the name Lucia Capital Group, a separate entity from LPL Financial.
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