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Roth or Traditional IRA – How Do You Decide?- Season 7: Episode 1

When it comes to saving for retirement, the decision to put your money into either a Roth or a Traditional IRA may be more complicated than you think.  Part of the decision involves your tax bracket today vs. your tax bracket at retirement, but there’s more to it than that.

When is investing in a Roth IRA a better idea than a traditional?  On the other hand, who should consider a Traditional IRA over a Roth?  And what are the consequences, good and bad, of doing one or the other?  Get the answers to these questions, along with an in-depth look at both types, with podcast host Johnny Dean and “Professor” Rick Plum, CFP®,   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. To the extent that this material concerns tax matters, it is not intended or written to be used, and cannot be used, by a taxpayer for the purpose of avoiding penalties that may be imposed by law. Each taxpayer should seek independent advice from a tax professional based on his or her individual circumstances.

You should always seek counsel of the appropriate advisor prior to making any investment decision. All investments are subject to risk including the loss of principal. This material was gathered from sources believed to be reliable, however, its accuracy cannot be guaranteed.

No client or prospective client should assume that the presentation (or any component thereof) serves as the receipt of, or a substitute for, personalized advice from Lucia Capital Group or from any other investment professional.

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Roth IRA are tax-free; however, any earnings will be taxed at ordinary income rates and a 10% penalty tax will apply if withdrawn prior to age 59½ or within five years of the date the Roth IRA was established, whichever is longer.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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