Traditional Vs. Roth IRA

Posted by Creekmur Wealth Advisors on 2:18 PM on April 23, 2020

Do you know the difference?

Traditional Individual Retirement Accounts (IRA), which were created in 1974, are owned by roughly 33.2 million U.S. households. Roth IRAs, however, were created as part of the Taxpayer Relief Act in 1997, are owned by nearly 22.5 million households.1

Both are IRAs. And yet, each is quite different.

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Topics: Financial Planning, Investing, IRA, Roth IRA

That First RMD from Your IRA

Posted by Creekmur Staff on 12:30 PM on October 22, 2019

What you need to know.

When you reach age 70½, the Internal Revenue Service instructs you to start making withdrawals from your traditional IRA(s).These withdrawals are also called Required Minimum Distributions (RMDs). You will make them, annually, from now on.1

If you fail to take your annual RMD or take out less than the required amount, the I.R.S. will notice. You will not only owe income taxes on the amount not withdrawn, you will owe 50% more. (The 50% penalty can be waived if you can show the I.R.S. that the shortfall resulted from a “reasonable error” instead of negligence.)1

Many IRA owners have questions about the rules related to their initial RMDs, so let’s answer a few.

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Topics: Wealth Management, Roth IRA, Taxes and retirees, taxes

Traditional vs. Roth IRAs

Posted by Creekmur Staff on 8:15 AM on March 5, 2019

 

Perhaps both traditional and Roth IRAs can play a part in your retirement plans.

 

IRAs can be an important tool in your retirement savings belt, and whichever you choose to open could have a significant impact on how those accounts might grow.

 

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Topics: Investments, IRA, Roth IRA, Tax Benefits, Taxes in Retirment

The Many Benefits of a Roth IRA

Posted by Creekmur Wealth Advisors on 1:46 PM on February 24, 2018

Why do so many people choose it rather than a traditional IRA?

 

The Roth IRA changed the whole retirement savings perspective. Since its introduction, it has become a fixture in many retirement planning strategies. Here is a closer look at the trade-off you make when you open and contribute to a Roth IRA – a trade-off many savers are happy to make.

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Topics: Uncategorized, Financial Planning, IRA, Retirement, Roth IRA, Tax Benefits, Tax defferred growth

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