About 401k’s and IRAs

(Traditional, Roth, SEP and Simple)

Roth vs Traditional IRA

Beginners Guide To Retirement Accounts

  • Which retirement account type is right for you
  • Contribution limits for different accounts
  • Contribution Deadline
  • Tax advantages

2017

2016

2017 2016 Roth IRA Contribution Limit

$5,500

$5,500

Roth IRA Contribution Limit if over the age of 50

$6,500

$6,500

Traditional IRA Contribution

$5,500

$5,500

Traditional IRA Contribution Limit if over the age of 50

$6,500

$6,500

Roth IRA Income Limits For Single Filers

Ineligible if Joint Income

$133,000

Ineligible if Joint Income

$132,000
Roth IRA Income Limits For Joint Filers

Ineligible if Joint Income

$196,000

Ineligible if Joint Income

$194,000
Custodian
Deductible
Distributions

(Qualified, non qualified, RMD)

There are three main types of distributions you can make from your retirement account including: Qualified, Non-Qualified and a Required Minimum Distribution.

A qualified distribution means you are taking money out of your Roth IRA and are avoiding any early withdrawal penalties by meeting the following requirements:

  • The Roth IRA has been open and active for at least 5 years

And one of these requirements must also be met:

  • The account holder is at least 59.5
  • The distribution was made after the account holder became disabled
  • The distribution is made to the beneficiary after the main holder passed away
  • Withdrawals of $10,000 or less are used for a purchase or remodel of a first home

A non-qualified distribution means that the withdrawal from the Roth IRA account did not met the qualified distribution requirements and is subject to income taxes and a 10% early withdrawal fee.

Once an account holder reaches the age of 70.5 they are required to make a Required Minimum Distribution from their account unless the account is a Roth IRA (they do not require RMDs).

This means they will have to start withdrawing funds from their retirement account by April 1 of the following year after they that they turn 70.5.

The RMD is calculated by taking the market value of the account on December 31 and dividing it by the distribution factor found on the IRA calculation table that matches the account holders age.

A non-qualified distribution means that the withdrawal from the Roth IRA account did not met the qualified distribution requirements and is subject to income taxes and a 10% early withdrawal fee.

Once an account holder reaches the age of 70.5 they are required to make a Required Minimum Distribution from their account unless the account is a Roth IRA (they do not require RMDs).

This means they will have to start withdrawing funds from their retirement account by April 1 of the following year after they that they turn 70.5.

The RMD is calculated by taking the market value of the account on December 31 and dividing it by the distribution factor found on the IRA calculation table that matches the account holders age.

Filing Status

  • The Importance of Saving For Retirement
  • Trading Responsibly in your Retirement Account

Target KW & Volume

  • 401k 200k
  • IRA 148k
  • Traditional IRA 14k
  • Roth IRA 129k
  • Roth vs traditional IRA 6300
  • Roth IRA Rules 23k
  • IRA Contribution Limits 19k

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