Retirement income streams from different investment options, meaning every option is subject to their unique tax treatment. It has since been standard practice to ensure that taxable accounts are the first options from which to draw retirement income, followed by tax-deferred accounts, and lastly the Roth options. The reasons for this standard strategy is informed by the different tax treatments that apply to these accounts.
When the time comes for you to move on from your current employer either because it’s time to retire or because you wish to pursue your fortunes elsewhere, IRA rollover rules might be a concern. You’ll want to know how to get the money you saved in your employer-sponsored retirement plan, herein referred to as the 401k.
If you are like most people, your IRAs hold a significant amount of your retirement assets. Incurring unnecessary penalties or not minimizing taxes becomes a costly affair affecting your security for a quality life during your retirement.
Some of the most common mistakes people make with their IRAs can be avoided:
Late last year, the IRS updated rules and regulations for Roth IRAs applicable in 2017. The new rules for Roth IRA were formulated using reviewed data from recent economic statistical figures, including national economic indicators, such as inflation. However, there are minimal but significant changes in the 2017 rules and regulations from 2016.