A Roth IRA is a tax-free account that you can use to save money for retirement. In order to withdraw money without having it taxed, you need to be at least 59 ½ years of age, and your account must be open for at least 5 years. Your account grows when you set aside taxed income from your paychecks.
You can also take your contributions to your Roth IRA and invest them in stocks, bonds, and more. Any return on these investments will remain untaxed, allowing you to take more home.
You can also add to your account with a 401(k) plan rollover. This involves moving your 401(k) contributions over to your IRA, which conveniently places it all in one account and minimizes taxes. At Schwantes Financial, our team offers 401(k) plan rollovers as an option for retirement planning in Kansas City.
A Roth IRA is an effective option for retirement planning, but they do have regulations on contributions depending on factors such as your age, the time of year, and more. If you don’t already have a Roth IRA, we can help you set one up to make retirement planning a simple process.
