Becoming a millionaire through a Roth IRA or a 401(k) involves different strategies for maximizing profits. A Roth IRA offers tax-free withdrawals in retirement, which can be advantageous if you expect to be in a higher tax bracket later in life. On the other hand, a 401(k) provides tax-deferred growth and potential employer contributions, boosting your savings. The optimal choice depends on factors like your current and future tax situation, employer match, and investment options. Consulting a financial advisor can help tailor a strategy that aligns with your financial goals and circumstances.
Prioritizing effective personal finance management holds greater significance than the sheer amount saved, irrespective of income source. Consulting a certified financial advisor can offer tailored strategies to optimize financial results by reducing expenses and enhancing income, regardless of whether it's earned through employment or investments.
I wholeheartedly concur. At 60 years old and newly retired, my external retirement funds total around One million two hundred fifty thousand dollars.. With no debt and minimal retirement fund allocation relative to my portfolio's value over the last three years, I recognize the importance of a financial advisor. Neglecting them isn't an option; however, thorough research is vital to find a trustworthy fiduciary advisor.
*@kristenpierce8661* Who is the professional who is advising you, if you could perhaps tell us? As a novice investing in stocks without the correct direction of a professional, I have lost a lot of money.
I'm guided by "Camille Alicia Garcia" an experienced coach with extensive financial market knowledge. While you can consider other options, her strategy has yielded positive results for me. She offers valuable insights, including entry and exit points for the securities I concentrate on.
Thank you for the information. I conducted my own research and your advisor appears to be highly skilled and knowledgeable. I've sent her an email and arranged a phone call. Her expertise is impressive, and I'm eagerly anticipating our conversation.
Hi my income is $120k in 2022. I took out a hardship withdrawal to buy my house in 2023 amount $180K. So my taxable income for 2023 is $300K, and my tax bracket is for 2023 is $300K? Thanks!
I’m finding out just tonight as I’m doing my Texas I gotta pay 1,700 bucks even tho I was told I was already taxed before I took out my 14,000 bucks under a hardship last year
As hardship distributions are subject to whatever your final effective tax rate is, they can't say that all your taxes were paid. It's most likely an estimated withholding amount. And, as you probably already know - it is usually subject to a 10% excise tax as well.
So I am leaving the country since I am not a US Citizen then unless a have a strong reason listed from the ones you mentioned in the video, does that mean I ca not withdraw my money?
Thank you for your question. Hardship distributions are considered in-service distributions. They're for people who are still working for their employers. If you're no longer working for your employer, you have incurred what is referred to as a distributable event. You will have to look at the plan document, but most let people withdraw their account balance soon after their separation date. Hope this helps. Thanks again for the question.
here’s the problem , someone needs a hardship withdraw to avoid foreclosure and wants to pay off there mortage which will free up there debt and is told they must dissolve loan options first , now if the individual couldnt make his montage payment what makes you think the person will be able to meet the terms set by the plan and repay the 401k account its absurd to force somone into a loan when claiming a financial hardship,
Thank you for commenting. Okay. A couple of things. 1) I see your point, but the hardship isn't for the whole mortgage. That's not the amount of "need". The hardship would only be for the amount to get them out of foreclosure. 2) There's now a rule that will allow employers to not require that the participant take the participant loan. Also, remember that hardship distributions are taxable, very often subject to the 10% excise tax, as someone else commented they can sometimes put you into a different tax bracket, and since hardships don't have a required 20% withholding - the tax consequences later on can be just as devastating.
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This was extremely helpful thank you very much for the hard work.
Thank you, glad it was helpful!
very helpful 😊
Glad we could help!
Becoming a millionaire through a Roth IRA or a 401(k) involves different strategies for maximizing profits. A Roth IRA offers tax-free withdrawals in retirement, which can be advantageous if you expect to be in a higher tax bracket later in life. On the other hand, a 401(k) provides tax-deferred growth and potential employer contributions, boosting your savings. The optimal choice depends on factors like your current and future tax situation, employer match, and investment options. Consulting a financial advisor can help tailor a strategy that aligns with your financial goals and circumstances.
Prioritizing effective personal finance management holds greater significance than the sheer amount saved, irrespective of income source. Consulting a certified financial advisor can offer tailored strategies to optimize financial results by reducing expenses and enhancing income, regardless of whether it's earned through employment or investments.
I wholeheartedly concur. At 60 years old and newly retired, my external retirement funds total around One million two hundred fifty thousand dollars.. With no debt and minimal retirement fund allocation relative to my portfolio's value over the last three years, I recognize the importance of a financial advisor. Neglecting them isn't an option; however, thorough research is vital to find a trustworthy fiduciary advisor.
*@kristenpierce8661* Who is the professional who is advising you, if you could perhaps tell us? As a novice investing in stocks without the correct direction of a professional, I have lost a lot of money.
I'm guided by "Camille Alicia Garcia" an experienced coach with extensive financial market knowledge. While you can consider other options, her strategy has yielded positive results for me. She offers valuable insights, including entry and exit points for the securities I concentrate on.
Thank you for the information. I conducted my own research and your advisor appears to be highly skilled and knowledgeable. I've sent her an email and arranged a phone call. Her expertise is impressive, and I'm eagerly anticipating our conversation.
Hi my income is $120k in 2022. I took out a hardship withdrawal to buy my house in 2023 amount $180K. So my taxable income for 2023 is $300K, and my tax bracket is for 2023 is $300K? Thanks!
I’m finding out just tonight as I’m doing my Texas I gotta pay 1,700 bucks even tho I was told I was already taxed before I took out my 14,000 bucks under a hardship last year
As hardship distributions are subject to whatever your final effective tax rate is, they can't say that all your taxes were paid. It's most likely an estimated withholding amount. And, as you probably already know - it is usually subject to a 10% excise tax as well.
The agreement 2019.9/5....
So I am leaving the country since I am not a US Citizen then unless a have a strong reason listed from the ones you mentioned in the video, does that mean I ca not withdraw my money?
Thank you for your question. Hardship distributions are considered in-service distributions. They're for people who are still working for their employers. If you're no longer working for your employer, you have incurred what is referred to as a distributable event. You will have to look at the plan document, but most let people withdraw their account balance soon after their separation date. Hope this helps. Thanks again for the question.
I win cohabited but they no tell me
here’s the problem , someone needs a hardship withdraw to avoid foreclosure and wants to pay off there mortage which will free up there debt and is told they must dissolve loan options first , now if the individual couldnt make his montage payment what makes you think the person will be able to meet the terms set by the plan and repay the 401k account its absurd to force somone into a loan when claiming a financial hardship,
Thank you for commenting. Okay. A couple of things. 1) I see your point, but the hardship isn't for the whole mortgage. That's not the amount of "need". The hardship would only be for the amount to get them out of foreclosure. 2) There's now a rule that will allow employers to not require that the participant take the participant loan. Also, remember that hardship distributions are taxable, very often subject to the 10% excise tax, as someone else commented they can sometimes put you into a different tax bracket, and since hardships don't have a required 20% withholding - the tax consequences later on can be just as devastating.
Math ain't mathimg 401 a scam dnt pay in