Phases of Retirement Planning
Contribution Phase
- When you deposit money into your account, you pay taxes up front at the current tax rate.
2010 Contribution Limits Single Age 50 & Above $5,000 $6,000
Accumulation Phase
- While your money grows, it is Tax Free.
Distribution Phase
- When you withdraw from your account, the funds are 100% Tax Free.
Transfer Phase
- Upon transfer, the funds are transferred to beneficiaries 100% Tax Free.
Traditional IRA vs Roth IRA
With a Traditional IRA, you receive a Tax Break on the contribution, but when you withdraw the funds (the bigger circle), 100% is TAXABLE.
With a Roth IRA, you pay taxes on the contribution (the smaller circle), but when you withdraw the funds, 100% is Tax Free.
To Roth or Not to Roth
Would you like to Prepay your biggest Retirement Costs today at a Discount???
A Roth Conversion Is An Option…
“Diffuse” The Retirement Savings Tax Bomb
Tax Rates are Historically Low
Congress has given us a new Law, a new loophole, to save on taxes because Taxes are going up!
2009 Rules
- A conversion was only available to those who had a Modified Adjusted Gross Income of $100,000 or less.
2010 Rules (Things Have Changed)
- The opportunity to convert a Traditional IRA to a Roth IRA is available to all taxpayers regardless of income.
Benefits of a Roth IRA:
- Tax Free Income in Retirement
- Put you in control of your Tax Liability in your retirement future
- Eliminates the worry of what future tax rates will be
The Biggest Retirement Expense is TAXES!!!
Schedule a Meeting Today to see if a Roth Conversion is right for you!