Tom Meaglia photo

Tom Meaglia, ChFC®, AEP®,

CLU®, CRPC®, MSFS

Chartered Financial Consultant

Investment Advisor Representative

Chartered Retirement Planning Counselor

CA Insurance Lic. #0567507

 

Meaglia Financial Consulting

2105 Foothill Blvd., #B140, La Verne, CA 91750

 

Toll Free: 800-386-3700

Bus:         909-593-6105

Cell:         818-681-8600

Fax:         909-593-6120

 

Email: tom@meagliafinancialconsulting.com

Website: www.meagliafinancialconsulting.com

May/June 2024

Roth IRA: A Good Fit for Your Goals?

Roth IRA A Good Fit for Your Goals

Traditional and Roth individual retirement accounts are both good choices for retirement investing. A Roth IRA offers tax advantages when you’re ready to withdraw your money, while traditional IRA contributions are tax-deferred until you make withdrawals. Reviewing both IRA options can help you decide.


Roth Basics
Contributions to a Roth IRA are made with after-tax money. That means you won’t get a tax deduction for your contributions. However, the money in your account accumulates tax free. Withdrawals are also tax free, giving you a tax-free income stream in retirement. The maximum contribution to Roth and traditional IRAs in 2024 is $7,000, or $8,000 for people age 50 or older.


No Required Distributions
Traditional IRAs require minimum distributions from your account after you reach age 73. A Roth IRA has no minimum distribution requirement — ever. If you don’t need the money in your account, you can allow it to keep growing tax free during your lifetime and then pass the Roth IRA tax free to your heirs.


Income Limits
You cannot contribute to a Roth IRA if your modified adjusted gross income (MAGI) exceeds certain amounts. For 2024, the income limit for single and head-of-household filers to contribute the maximum amount is $146,000. Partial contributions are allowed until MAGI exceeds $161,000. Married joint filers can contribute the full amount if MAGI is $230,000 or below, with total phaseout at MAGI above $240,000.


The Five-year Rule
Contributions to a Roth IRA can be withdrawn at any time, but earnings distributed before age 59 1/2 may be subject to a 10% penalty and income tax unless you meet an exception. After age 59 1/2, you can withdraw both contributions and earnings with no penalty once the account has been open for at least five tax years.


How to Decide
Consider a Roth IRA if you expect to be in a higher tax bracket in retirement. Because you’ll pay taxes on the conversion, converting a traditional IRA to a Roth IRA generally should be undertaken when you have a dip in income. Your financial professional can help you make an informed decision.


SUBSCRIBE

Enter your Name and Email address to get
the newsletter delivered to your inbox.

Please include name of person that directed you to my online newsletter so I can thank them personally.


CONTACT US

Enter your Name, Email Address and a short message. We'll respond to you as soon as possible.

Thomas Meaglia is an Investment Adviser Representative of Coppell Advisory Solutions LLC, dba, Fusion Capital Management, a registered investment adviser that only conducts business in jurisdictions where it is properly registered, or is excluded or exempted from registration requirements. Registration as an investment adviser is not an endorsement of the firm by securities regulators and does not mean the adviser has achieved a specific level of skill or ability. The firm is not engaged in the practice of law or accounting.
Insurance and annuity products are not sold through Fusion Capital Management. Fusion does not endorse any annuity or insurance product, nor does it guarantee any insurance or annuity performance. Annuity and life insurance guarantees are subject to the claims-paying ability of the issuing insurance company. If you withdraw money from or surrender your contract within a certain time after investing, the insurance company may assess a surrender charge. Withdrawals may be subject to tax penalties and income taxes. Persons selling annuities and other insurance products receive compensation for these transactions. These commissions are separate and distinct from Fusion's investment advisory fees.
Meaglia Financial Consulting and LTM Marketing Specialists LLC are unrelated companies. This publication was prepared for the publication’s provider by LTM Client Marketing, an unrelated third party. Articles are not written or produced by the named representative.

The information and opinions contained in this web site are obtained from sources believed to be reliable, but their accuracy cannot be guaranteed. The publishers assume no responsibility for errors and omissions or for any damages resulting from the use of the published information. This web site is published with the understanding that it does not render legal, accounting, financial, or other professional advice. Whole or partial reproduction of this web site is forbidden without the written permission of the publisher.