Tag: retirement

What are the Tax Advantages of a Roth IRA Account?

Written by Paul Belfiore on November 15, 2024. Posted in Blog, Taxes.

Hudson, NH Resident Seeks Advice

A Roth IRA is a favorite retirement account for many reasons, particularly for the tax advantages that it offers as your money grows and when it is withdrawn. With a Roth IRA, your contributions to the account are after-tax money. This means you are paying taxes on this income up-front. However, as the money then grows in the Roth IRA these earnings are tax-free. You can begin making withdrawals when you reach 59 ½ years of age. These withdrawals are also tax-free. This means that the interest earned from your Roth IRA is not taxed, giving you maximum income in retirement when you may need it most.

What are the Tax Penalties for Early Withdrawal on Retirement Accounts?

Written by Paul Belfiore on September 13, 2024. Posted in Blog, Taxes.

Litchfield, NH Resident Weight the Pros and Cons

Retirement accounts, from 401(k)s to traditional and Roth IRAs, offer lots of opportunities to grow your money with a tax advantage to boot. Participants in traditional 401(k)s, traditional IRAs, and Roth IRAs are not allowed to withdraw funds before age 59 ½ without penalty. If a hardship or life event makes this early withdrawal necessary, the typical penalty is 10% and the money withdrawn is taxed as income at the time it is received.

How Will I Be Taxed in Retirement?

Written by Paul Belfiore on May 1, 2020. Posted in Blog, Taxes.

A traditional IRA and a 401(k) are tax-deferred retirement accounts. The money is left in these types of accounts to grow and collect dividends. However, when you start taking withdrawals you will pay taxes. Roth IRAs differ in that contributions are not tax-deductible, but when you begin taking withdrawals this will be tax-free. A portion of your social security benefits may be taxed if your provisional income exceeds $25,000.

Save Money On Taxes During Retirement

Written by Paul Belfiore on October 25, 2019. Posted in Blog, Taxes.

Nashua, NH Couple Looks For Suggestions

One of the easiest ways to keep your tax bill down in retirement is with a Roth IRA. With this account, contribution withdrawals and money earned are tax-free. A health savings account or HSA is a good way of setting aside money for medical expenses, tax-free.