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His Capital Group

2151 Consulate Dr. Suite 6 ​​​​​​​Orlando, FL 32837

His Capital Group

9AM - 6PM
Mon-Fri

His Capital Group

info@hisrealestatenetwork.com
+1-407-347-6461

Roth IRAs and Roth 401(k) plans are both great ways to invest for retirement, each conferring significant tax advantages. But don’t make the mistake of mentally equating them. They differ, and it’s important to understand how.

Recently, Ed Slott and Co. published a useful discussion of the differences on the company website (www.irahelp.com).  Here are the key takeaways in our opinion

There is no combined limit for contributions to Roth IRAs and Roth 401(k)s. So, for example, for 2021, if your employer offers a Roth 401(k) account, you could contribute a combined total of $25,500; if you are 50 or older, you could contribute $33,000.  Roth IRAs have been around since 1997. 1 Roth 401(k)s came into existence in 2001.

The advantages of Roth 401(k)s over Roth IRAs are:

The advantages of Roth IRAs over Roth 401(k)s are:

Bottom line: There are advantages to both types of accounts. If you meet the eligibility requirements, there is no reason why you can’t use both options to your advantage.

Did you know that you can use your IRA to invest in real estate?  Your portfolio can use a hedge against the stock market. If you’re looking for a turnkey option to take an ownership position in a portfolio of performing tangible assets visit www.hisfund3.com you’ll be glad you did.

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