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Roth IRA and your 401K

You have heard of 401K's. You have heard of Roth IRA's. But did you know you can add a Roth IRA to your 401K? Talk with one of our experts today for more information!

Saving for Retirement

Around the country, attitudes about retirement are shifting.

Approaching Retirement

Roth IRA's are continuing to be a growing trend. And now you can add them to your 401K! Talk to a Financial Specialist today who can steer you to a happy retirement!

Living in Retirement

Money from a Roth account is no longer subject to taxes, so you can let that account grow and utilize that money tax-free in retirement.

Let Us Help You With Your Retirement Planning. Contact Us Now!

Thank you!

We specialize in helping people plan for the retirement they want! If you are interested in learning more about IRAs and 401k's, our team is here to help!

Call 216-284-5219 for a no cost consultation

What is a Roth IRA?

The Roth IRA was established in 1997, named after the Senator William Roth of Delaware, who proposed the idea. Basically, Roth money, whether it goes into a Roth IRA or Roth 401k, is money that goes in after-tax. This is the opposite of traditional 401k money, which goes in after taxes.

Money from a Roth account is no longer subject to taxes, so you can let that account grow and utilize that money tax-free in retirement. This is a great tool for retirement planning!

The Roth Drawback

The major drawback of a Roth IRA is that if you make a certain amount of money, you cannot put money into a Roth IRA.

The current limits are:

  • For married couples, the limit is around $208,000 a year.
  • For an individual, the limit is around $140,000 a year.

Roth Contributions into a 401k

In 2001, a change was made to allow Roth contributions into a 401k.

Now, a lot of plans will allow you to put money in, traditionally, where you get a tax deduction as you put the money in, it goes in pre-tax, but they'll allow you to put money in after-tax or make Roth 401k contributions. The big plus here is there's no income limitation to putting money into a 401k.

So, if you've got a 401k at work, you can put money into the Roth option, provided that your plan allows it.

You can also put a lot more money into a 401k than you can with a traditional IRA or Roth IRA each year. So, if you're really trying to amp up your retirement savings, a great place to do it in the 401. And if you've got that Roth option, take advantage of that inside of the plan as well.

Before investing, consider the investment objectives, risks, charges, and expenses of the annuity and its investment options. Contact Vantage Financial Group for a prospectus or, if available, a summary prospectus containing this information. Read it carefully.

*Guarantees apply to certain insurance and annuity products and are subject to product terms, exclusions and limitations and the insurer's claims paying ability and financial strength.

1. If you are buying a variable annuity to fund a qualified retirement plan or IRA, you should do so for the variable annuity's features and benefits other than tax deferral. In such cases, tax deferral is not an additional benefit.

2. Investing in a variable annuity involves risk of loss - investment returns and contract value are not guaranteed and will fluctuate.

3. Deferred Income Annuity contracts are irrevocable, have no cash surrender value and no withdrawals are permitted prior to the income start date.