Categories
New Parents

How retirement accounts are taxed | It’s simpler than it sounds | Principal® [Video]

What’s the difference between 401(k) and Roth 401(k) contributions? A traditional IRA and a Roth IRA? For one, how they’re taxed. In this episode of our new series—”It’s simpler than it sounds”—we’ll walk you through the difference between pre-tax and after-tax retirement savings accounts and how you might use both to build an effective retirement savings strategy.The subject matter in this communication is educational only and provided with the understanding that Principal® is not rendering legal, accounting, investment or tax advice. You should consult with appropriate counsel, financial professionals, and other advisors on all matters pertaining to legal, tax, investment or accounting obligations and requirements.Insurance products and plan administrative services provided through Principal Life Insurance Co.,a member of the Principal Financial Group®, Des Moines, IA 50392.Principal, Principal and symbol design and Principal Financial Group are trademarks and service marks of Principal Financial Services, Inc., a member of the Principal Financial Group.©2021 Principal Financial Services, Inc. | 1536961-052021

Categories
Retirement Planning

Roth Conversion Window of Opportunity is Closing! – Roth Conversion 2021 [Video]

One of the most common questions we receive is ” When does a roth conversion make sense?”This year? Next year? Sometime in the future? With conversions, this is the million-dollar question and will determine how valuable the conversion is to your retirement. There are numerous reasons a Roth Conversion can make sense in your situation. We’ll be walking through different retirement tax hurdles you will be subject to and how conversions can overcome these hurdles in an upcoming series. In today’s video, however, we are going to start with one of the most simplistic reasons a conversion will make sense – rising taxes. Despite many retirees feeling as though taxes will have to rise in the future to deal with the national debt, Congress is unpredictable. America has had a debt issue for decades and Congress appears ‘asleep at the wheel’.However, there is a tax hike in our future that we don’t need to predict…The sunsetting of the Tax Cuts and Jobs Act. Right now the Tax Cuts and Jobs Act lowered each tax bracket by up to 4% and almost doubled the standard deduction. This means less of your income is taxed and the income that is taxed, is taxed at a lower rate. However, this is set to revert back to the old tax code in 2026. This means right now, retirees have a powerful window of opportunity for conversions that is closing fast!Have you been taking advantage of it? In this video, we will discuss:✅ Why a Tax Cuts and Jobs Act Roth Conversion gives retirees an added benefit✅ How to assess a 2021 Roth Conversion ✅ What the closing of this window of opportunity looks like in a forward-looking tax plan- – – – – – – – – – – – – – – – – – – Always remember, “You Don’t Need More Money; You Need a Better Plan”🍿 Subscribe to our channel: https://www.youtube.com/channel/UCVMA…🏆 Join our ‘Retirement Mastery’ Facebook Group: https://bit.ly/retirement-mastery-group📈 Talk with us about your retirement plan here: https://www.safeguardinvest.com/contact📚 The New 60/40: How the Next Generation of Retirees Can Achieve Radical Financial Freedom through Better Safe Investing – https://www.amazon.com/New-60-Generation-Financial-Investing/dp/B08H6TCMFNSafeguard Wealth Management is a Registered Investment Advisor in the State of WI. Safeguard Wealth Management is not an insurance provider. All content on Youtube is for informational purposes only and should not be taken as personal advice for your situation. You can read more disclosures at https://www.safeguardinvest.com/fiduciary