Is A Scottrade Roth IRA For You?
Scottrade Roth IRA contributions are made with after tax dollars, and they grow without taxes. You can withdraw contributions to your Scottrade Roth IRA at any time, and they can generally be withdrawn tax free.
If you have been thinking about converting your traditional IRA to a Scottrade Roth IRA, this is a great time to make the change, and start saving for retirement. There are no limits for converting a traditional IRA to a Roth IRA. You have the opportunity for your investments to grow tax free.
For 2010 only, you can defer conversion taxes. 50% of the taxes on the conversion would be due in 2011, and the other 50% due in 2012.
Some of the benefits you will receive from a Scottrade no fee Roth IRA include:
- A wide variety of investment choices.
- Self direction; YOU choose where your money goes.
- Your money will grow tax free.
- No minimum annual contributions.
- No opening, closing, or custodial fees.
Converting to a Scottrade Roth IRA is a simple process. Open a Scottrade IRA online. Complete the direct conversion request form, and return the completed form to a local Scottrade branch office.
Visit Scottrade online to find out if a Roth IRA is for you. The website has an online calculator to help you determine if a Scottrade Roth IRA is right for you.
It is never too early to begin planning for retirement. You want to make sure you have enough money to enjoy the good life. You put in a lot of years working hard, now it is your time to do the things you have only been dreaming of. You have earned it!
A Scottrade Roth IRA is a great choice for anyone who wants enough money for a happy retirement.
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Fidelity 401k Rollover Options
If you have lost your job, you are changing jobs, or ready to retire, there are several options to consider. Here are some ideas for Fidelity 401k Rollovers.
You can move your assets into an IRA, roll your assets into a plan with your current employer, keep your assets in your former employer’s plan, or take your distribution in cash. If you cash out your plan, withdrawal penalties will apply.
By bringing all of your 401k and IRA’s together, you can simplify and manage your savings more efficiently.
Consider Fidelity 401k rollovers if you want:
- A clear picture of your financial future.
- No restrictions that may come with having a workplace savings account.
- Access to mutual funds, stocks, bonds, CD’s, and other investments.
- No penalty withdrawal fees for first time home owners, or qualified educational expenses.
- Have the opportunity to convert to a Roth IRA for part, or all of your savings, regardless of your income.
Many employers will match the amount you contribute to 401k plans. If you are not sure if your employer offers this benefit, find out. There is no cost to you, and you will be adding more money to your retirement savings plan.
There are so many people that are unemployed. If you are fortunate enough to be employed in today’s tough job market, you owe it yourself and your family to take advantage of any 401k plan your employer has to offer. This is a great way to plan for your future.
For more information on Fidelity 401k rollover options, contact a rollover specialist at 1-800-FIDELITY. Specialists are available to answer any questions you may have about 401k rollovers. If you are ready to begin the process, call today to get your Fidelity 401k rollover started.
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What Is A Roth IRA?
For a lot of people that are planning their retirement, they open a Roth IRA account.
The Roth IRA was created in 1997 when Congress passed the Taxpayers Relief Act. The Taxpayers Relief Act was designed to encourage working Americans to save money for retirement.
There is no age limit on contributions, so anybody can open one of these accounts. Roth IRA’S can be opened through an independent brokerage service, or through your bank.
With a Roth IRA, the earnings on any investment grow tax free. Your distributions on the account go untaxed as well. What does this mean? When you withdraw your money at retirement age, the money is not taxed by the IRS on this income. A Roth IRA lets you withdraw any contributions you make, at any time with no penalties and they are tax free. This does not apply to withdrawing earnings.
Most Americans qualify for a Roth IRA. It depends on your tax filing status and your income. Currently single taxpayers are able to contribute the maximum amount that is allowed into their Roth IRA, if their annual gross adjusted income (AGI) is less than $95,000. If you make more than $95,000 (up to $110,000), you are still able to contribute, but at a reduced maximum. If your AIG is over $110,000 you do not qualify for a Roth IRA.
If you are married and file taxes jointly, the limits are $150,000 for maximum contributions, and $160,000 for reduced contributions. Any amount over that, disqualifies you. If you are married, but file separate tax returns you do not qualify for a Roth IRA.
Retirement can be scary. A Roth IRA is a great way to start preparing for retirement.
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What Is A Roth 401K Plan?
Many employers have a new savings plan to offer their employees: the Roth 401K plan. The Roth 401K plan combines the features of Roth IRA’S and traditional 401K plans.
If you already contribute to a 401K plan, you can still participate in a Roth 401K plan if it is offered by your employer. The combined total contributions can not exceed what the IRS (Internal Revenue Service) limits for individual plans. An employee that participates in both plans can designate the amount to go into each plan. Once the decision has been made you can not switch money among the plans.
Below are some other things you should know about Roth 401K plans:
- Employee contributions are made with after tax dollars.
- Investment growth accumulates without any tax consequences.
- There is no income limit to participate.
- Withdrawals of contributions and investment growth are NOT taxed provided you are at least 59 ½ and the account is held for at least 5 years.
- Distributions must begin no later than age 70 ½ (this is subject to change).
If your employer provides a matching contribution to a Roth 401K plan, two accounts are set up for each participant. The first account contains the employee’s after tax contributions that are distributed tax free. The second account contains the employee’s before tax contributions and any investment growth. These funds are taxable when distributed.
You should always take advantage any time your employer offers to match contributions to your Roth 401K plan. This is extra money you will have at retirement.
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How To Set Up A Roth IRA
Starting a Roth IRA is not hard to do. There are a number of providers that will be more than happy to help you make this process easy.
First you need to know if you are eligible to set up a Roth IRA account. Most people are. You must have income from a job or business and you must make less than the current income limit. Income limits change from time to time so check with the IRS or your investment bank to see if you qualify.
Decide how much money you want to invest. The government does not require you to have a minimum amount in your Roth IRA, but most providers will. If you do not have a lot to invest, you may want to think about letting your money grow in a savings account until you are able to invest in a Roth IRA. Contact your bank to see if they have a minimum requirement to set up a Roth IRA.
Choose your provider. You can set up a Roth IRA at a bank, mutual fund company, brokerage firm or insurance provider. Discuss the risks with each provider, to make sure the level of risk fits your investment style.
Ask about any fees before you open an account. Some providers charge higher fees, so be sure you know all fees involved before choosing what provider to use.
Now you are ready to open your Roth IRA account. You will be asked to choose beneficiaries. Your first beneficiary is usually your spouse, but you should choose secondary beneficiaries. These people will receive the money in the event both you and your spouse are deceased.
Now that your account is open, start investing and watch your money grow!