This is money talks with Chad Olivier.
Sponsored by Olivier Group.
Hi. I’m Chad Olivier, CEO and certified financial planner with Olivier Group.
If you get a chance to do a Roth, consider taking advantage of it. Many people earn too much money to contribute directly to a Roth IRA because of income limits, but they may still have access to a Roth option through their employer’s retirement plan.
More and more four zero one k plans offer a Roth four zero one k. Contributions are made with after tax dollars, so you don’t receive a tax deduction today. However, the money can grow tax deferred, and if certain requirements are met, withdrawals in retirement may be completely tax free. Another advantage is that Roth four zero one k’s are not subject to income limits, meaning high income earners can often contribute much more than they could to a Roth IRA. For two thousand twenty six, workers under age fifty can contribute up to twenty four thousand dollars with additional catch up contributions available for those aged fifty and older. While paying taxes now may not sound appealing, having a source of tax free income in retirement can provide flexibility and may help manage future tax brackets and Medicare premiums.
And the benefits may not end with you. Assets remaining in a Roth account can pass to your heirs income tax free, while most non spouse beneficiaries generally must distribute inherited Roth assets within ten years.
Those distributions are typically tax free, allowing you to leave a legacy without leaving a tax bill. So if your income keeps you from contributing to a Roth IRA, don’t assume the door to tax free growth has closed. Your workplace retirement plan may provide another path. Remember, every dollar you pay taxes on today is one less dollar Uncle Sam may be able to tax in retirement. Building a pool of tax free money can give you more control, more flexibility, and potentially more income to spend on things that matter most. In retirement, it’s not just about how much money you have, it’s about how much money you get to keep. And for many families, a Roth may not only provide tax free income during your lifetime, but also may allow you to pass on tax free assets to the next generation.
That’s why if you get the chance to do a Roth, it’s worth serious consideration. Visit us at olivier group dot com and contact one of our certified financial planners. And that’s why money talks, but planning pays. This has been money talks with Chad Olivier.
