Click me
Transcribed

Roth Comparison Chart

Torad ROTH COMPARISON CHART Comparison of Roth 401 (k), Roth IRA, and Traditional 401 (k) Retirement ACcounts DESIGNATED TRADITIONAL, ROTH 401 (K) ROTH IRA PRE-TAX 401(K) ACCOUNT ACCOUNT CONTRIBUTIONS Traditional, pre-tax elective contributions are Designated Roth employee Roth IRA contributions are loyee elective contributions are made with after-tax dollars. made with after-tax dollars. made with before-tax dollars. SJ INCOME LIMITS No income limitation to Income limits: No income limitation to participate. participate. • 2013- modified AGI married $188,000/single $127,000 • 2014 - modified AGI married $191,000/single $129,000 MAXIMUM ELECTIVE CONTRIBUTION Aggregate* employee Contribution limited to $5,500 for 2013 and 2014 plus an additional $1,000 for employees age 50 or over. Same aggregate* limit as Designated Roth 401 (k) elective contributions limited to $17,500 in 2013 and 2014 plus an additional $5,500 for employees age 50 or over. Account TAXATION OF WITHDRAWALS Withdrawals of contributions Withdrawals of contributions and earnings are not taxed provided it's a qualified distribution – the account is Same as Designated Roth 401(k) Account and can have a qualified distribution for a first time home purchase. and earnings are subject to Federal and most State income taxes. held for at least 5 years and made: • On account of disability • On or after death, or • On or after attainment of age 59½ REQUIRED DISTRIBUTIONS Distributions must begin no No requirement to start taking distributions while Same as Designated Roth 401 (k) Account. later than age 702, unless still working and not a 5% owner is alive. owner. * This limitation is by individual, rather than by plan. Although permissible to split the annual employee elective contribution between designated Roth contributions and traditional, pre-tax contributions, the combination cannot exceed the deferral limit - $17,500/$23,000 in 2013 and 2014. YGrad

Roth Comparison Chart

shared by iGrad on Apr 22
1,060 views
1 shares
0 comments
Do you understand the differences between a Designated Roth 401(k), Roth IRA and a Traditional Pre-Tax 401(K) Account? A friendly visual breakdown of some of the key differences for these popular reti...

Publisher

iGrad

Source

Unknown. Add a source

Category

Economy
Did you work on this visual? Claim credit!

Get a Quote

Embed Code

For hosted site:

Click the code to copy

For wordpress.com:

Click the code to copy
Customize size