William Penn Life, 2019 (54. évfolyam, 2-5. szám)
2019-05-01 / 5. szám
Moneywise taxes or penalties. Only earnings and converted traditional IRA balances are subject to the five-year and age 59 V2 withdrawal restrictions. Generally, withdrawals for Roth IRAs are considered to come from contributions first under what's known as the "first-in-first-out" method. Distributions from earnings and converted traditional IRA balances—which can be taxable and penalized if conditions are not met—begin only when all other contributions have been withdrawn. It is also important to understand that although there may not be taxes and penalties, distributions that exceed certain limits may be subject to withdrawal penalties assessed by your custodian or product carrier. Benefit #8: No age limit on contributions. Unlike traditional IRAs (which limit contributions to a maximum age 70 V2), you can contribute to your Roth IRA as long as you have earned income-no matter how old you are. While there are no age requirements, your income must be within certain limits in order to contribute to your Roth IRA. Now, about the deposit and income limits.... In order to contribute to a Roth IRA, you must have "earned" income, that is, compensation from employment or self-employment. You can contribute 100% of that income up to the maximum allowed. For those who qualify, the maximum you can contribute to a Roth IRA in 2019 is $6,000 if under age 50, or $7,000 if over age 50. If your income is over a certain limit, your allowable contribution may be reduced or eliminated altogether. Here are the income limits for 2019: Single Filer • Full contribution if your adjusted gross income is under $122,000. • Limit will be phased out if income is between $122,000 and $137,000. • No contribution will be allowed if your income exceeds $137,000. Married Filer • Full contribution limit if your adjusted gross income is under $193,000. • Limited contribution if income is between $193,000 and $203,000. • No contribution if your income exceeds $203,000. These are some of the benefits to having a Roth IRA in your retirement portfolio. Sometimes they make sense, sometimes they don't. Usually, it comes down to taxes, the need for tax-free income in retirement, and having the ability to leave more for your heirs. No matter your age, a Roth IRA may improve your overall tax picture. Consult with your tax advisor to see if having a Roth IRA makes sense for you, then call your William Penn Association agent or broker to have them help you choose which one of our annuity products will best fit your situation and time horizon. Don't have an agent? Give us a call at 1-800-848-7366 and ask for the Sales Department (Barbi at ext. 120 or Bob at ext. 134) and we'll be happy to assign you an agent in your area. Until next time, Happy Mother's Day! Come grow with us William Penn Association is looking to grow and expand its reach in current and possibly new markets. To do this, we are seeking to add highly motivated agents to our list of over 800 existing agents. WPA currently writes insurance and annuity products in 21 states. The states include: CA, CT, DC, DE, FL, IL, IN, KY, MD, MA, Ml, MO, NC, NE, NJ, NY, OH, PA, VA, WV and Wl. To grow, we need both full-time and part-time agents. Good agents are the lifeblood of any association, and WPA is a strong and growing association that has much to offer our members and the agents who write for us. If you are interested in an opportunity to grow with us, then contact Bob Bisceglia at I -800-848-7366, ext. 134. Thank you. WILLIAM PENN LIFE 0 May 2019 0 5
