401k
Do you want to gain investment flexibility without compromising your wealth? If so, consider a rollover 401(k), an option that many people are in favor of to gain tax benefits. Consumers can gain a greater level of control when they roll over 401(k) to IRA, because unlike a company-sponsored plan, an individual retirement account (IRA) allows for a wider field of investments, including stocks, bonds, precious metals, ETFs, etc. One of the main reasons why soon-to-retire individuals go down this route is because it keeps their retirement savings tax-advantaged. What’s more, monitoring savings progress and managing accounts is made easy with a rollover 401(k). Before you actually make the decision to roll over 401k you should first understand the differences between a Traditional and Roth IRA.
Rollover 401(k) to Traditional IRA
If you go down this route, you must understand that your contributions will be taxed at the current rate. This isn’t such a bad thing, because when the money and/or assets are left to grow interest over time, your wealth will build tax-free. Considering the fact that the tax bracket tends to change quite a lot, this could really shield your savings from harsh tax fees. When you roll over 401(k) to a traditional IRA, early withdrawals will cost you a 10 percent penalty fee. Taxes apply, but no penalties apply if you withdraw between the age of 59.5 and 70. Any withdrawals made after the age of 70 are required by law, so don’t forget to make a distribution!
Rollover 401(k) to Roth IRA
A rollover 401(k) to IRA Roth might be right for you if you are interested in making non tax-deductible contributions. Earnings can grow tax-free with this retirement savings method and your account can be funded with the money you earn. Money market funds, CDs, ETFs, mutual funds, stocks, and bonds are some investment options making the investment pool similar to a traditional IRA. If your income is above a certain level, you might not be eligible.
Should you be on the verge of initiating a rollover 401(k), but require investment advice from an expert, get in touch with the team at Goldco.
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With the Goldco self-directed IRA guide, you’ll learn everything there is to know about investing in gold and silver with a precious metals IRA. Whether you’re a long-time precious metals investor or a first-time buyer, our FREE guide will explain the advantages of precious metals IRAs, how to get started investing in precious metals, and how long the IRA process will take.
Once you’ve read our FREE IRA guide, our specialists are available to answer any additional questions you have about opening a gold or silver IRA. If you’ve wished you could invest in gold and silver but didn’t know how, request your FREE self-directed IRA guide today and learn how you can harness the power of gold and silver to protect your retirement savings, grow your wealth, and add much-needed stability to your investment portfolio.
Ready to Protect Your Retirement Savings?
Get our FREE Self-Directed IRA Guide
With the Goldco self-directed IRA guide, you’ll learn everything there is to know about investing in gold and silver with a precious metals IRA. Whether you’re a long-time precious metals investor or a first-time buyer, our FREE guide will explain the advantages of precious metals IRAs, how to get started investing in precious metals, and how long the IRA process will take.
Once you’ve read our FREE IRA guide, our specialists are available to answer any additional questions you have about opening a gold or silver IRA. If you’ve wished you could invest in gold and silver but didn’t know how, request your FREE self-directed IRA guide today and learn how you can harness the power of gold and silver to protect your retirement savings, grow your wealth, and add much-needed stability to your investment portfolio.