Roth 403(b) Plan

 

 

 

 

 

 

 

 

 

Summary of a Roth IRA

 

Although Roth IRA contributions are not tax-deductible, they do offer a potentially greater tax benefit than a Traditional IRA or 403(b).   All contributions and earnings left in the Roth IRA for at least five years and distributed after age 59½ will not be taxed, no matter what your tax bracket or income level at the time.  One potential disadvantage is that there is an income limit for those who wish to contribute to a Roth IRA, whereas if you are eligible for a Roth 403(b) there is no income limit, and you may contribute much more into the Roth 403(b) if desired.  A traditional ROTH IRA limit 2019 is $6,000, or if you're 50 or older, it's $7,000 since IRS lets you contribute an additional "catch-up" contribution of $1,000. 

 

There are some significant advantages to contributing to a Traditional Roth IRA that might make it more attractive:  you are free to withdraw any money you have contributed into your account from your Roth IRA anytime you need it.  Since the contributions you've made into your account are after taxes, withdrawals will be tax and penalty free. The restrictions are imposed only if you withdraw earned money from your Roth IRA before you reach the age of 59 ½, and a half or before the account is five years old. If any withdrawal of earned income is made before these two dates then you will be subject to penalties and taxation (but only on the earned interest).  There are of course, always exceptions to the rule. You may be able to avoid paying those penalty payments if your withdrawal is for any of the following circumstances:

 

1) You use the withdrawal to pay for a first-time home purchase.

2) You use the withdrawal to pay for qualified education expenses.

3) You are at least 59 ½.

4) You become disabled or if you pass away it will go to your beneficiary.

5) You use the withdrawal to pay for unreimbursed medical expenses or for health insurance if you're unemployed.

6) The distribution is made in substantially equal periodic payments.

 

          Another advantage is that your contributions come out of your personal checking account, so you may have more flexibility.  You will be are free to write an additional check to contribute up to your limit, all the way until April 15th for the previous year.

For more information please contact:

Stacey Parnum, Registered Rep, CA Insurance Lic.# 0B29425

 

Toll Free:       833-672-7686  

Office:          818-353-5037

Mobile:         661-312-8882

Fax:             818-353-5001

Website:       www.ParnumFinancial.com

Email:          stparnum@planmembersec.com

 

Representative registered with and offers only securities and advisory services through PlanMember Securities Corporation (PSEC), a registered broker/dealer, investment advisor and member FINRA/SIPC.  6187 Carpinteria Ave., Carpinteria, CA 93013 – (800) 874-910.  Parnum Financial and PSEC are independently owned and operated companies.  PSEC is not liable for ancillary products or services offered by this representative or Parnum Financial.