Individual Retirement Accounts (IRAs) allow individuals to save and invest for retirement on a tax-deferred—and possibly tax-deductible—basis.
Rollover IRAs allow individuals with employer-sponsored retirement plans (401ks) from former employers to consolidate them into a single, tax-advantaged account. Amounts rolled over may continue to grow tax deferred.
- If you have changed jobs, left the workforce or are close to retirement, a rollover IRA may work great for you
- A rollover IRA from a former employers’ 401k may benefit you by expanding your investment options, consolidating statements and simplifying your tax-reporting
Roth IRAs provide a tax-advantaged way for individuals to save and invest for retirement. Contributions are made with after-tax dollars and offer potentially federal tax-free withdrawals in the future with no required minimum distributions (RMDs).
- Clients looking for tax diversification may want to consider converting a portion of their Traditional IRA assets to a Roth IRA. Your MVM advisor will run an illustration to see potential long-term benefits of a Roth conversion
- A Roth conversion can be a powerful instrument for maximizing potential long-term earnings—especially for clients who believe taxes may continue to increase or who may be in a higher income tax bracket when they retire
Stretch IRA Strategy
This distribution strategy can potentially stretch the tax-deferred benefits of an IRA for future generations.
- By simply making wise beneficiary choices, clients can extend the life of their IRAs for future generations
- Your MVM advisor can complete a beneficiary review of all your retirement accounts; by working with your tax or legal advisor, let’s see how far we can stretch your IRA
Note: Significant conditions, restrictions, and limitations apply to both the original IRA owner and the beneficiary including, but not necessarily limited to, eligibility requirements, timing factors and distribution requirements. The beneficiary’s distribution period is potentially very lengthy, and this strategy is based upon current tax law, which could change during the distribution period and may significantly impact its outcome, including a beneficiary’s ability to maintain estimated distributions. A lengthy distribution period also exposes investors to significant market and inflation risk as well as ongoing fees, costs and charges that may be applicable during the distribution period.
A Guardian IRA is held in the name of a parent or legal Guardian on behalf of a minor or for an individual who is unable to manage finances due to a physical or mental disability. Because a Guardian IRA is a specialized version of a Traditional or Roth IRA, many of the same rules apply. See the Traditional and Roth IRA section for contribution deductibility, distributions, withdrawals, rollovers, conversions and transfers. Any rules that are different are covered in the sections below.
- You may be focused on accumulating assets for retirement—but are you maximizing your tax-advantaged opportunities?
- Guardian IRAs provide additional opportunities for increasing tax-advantaged investments for clients with children who have earned income
- Guardian IRAs allow parents to contribute to the account, helping nurture their children’s understanding of investing or plan for retirement-age income for a special-needs adult
- If you have children entering their teens, a Guardian IRA —particularly a Roth IRA may be an excellent addition to you retirement plan
A spousal IRA allows a non-working spouse to contribute to a retirement account. Because a Spousal IRA is a specialized version of a Traditional or Roth IRA, many of the same rules apply. See the Traditional and Roth IRA sections for contribution deductibility, distributions, withdrawals, rollovers, conversions and transfers. Some things to note about spousal IRA are listed below.
- You may be focused on accumulating assets for retirement—but are you maximizing their tax-advantaged opportunities?
- Spousal IRAs provide additional opportunities for increasing tax-advantaged investments for clients with a spouse who has little or no earned income
- Spousal IRAs can be a simple way to increase tax-deferred household savings and investments as well as opportunities for long-term growth
- Spousal IRAs may be appropriate for clients with spouses who do not work outside the home
More Information for: