TRADITIONAL VS. ROTH
Chances are, you’ve heard plenty of talk about IRAs and Roth IRAs while saving for your retirement. There’s plenty of literature out there debating which plan is better, but the truth is, that answer really depends on you and your goals. If you don’t have a 401(k) or similar plan through your employer, traditional and Roth IRAs both present a great avenue for retirement savings, but they have significant differences. Here’s an overview to help you make an informed decision. WHENTHETAXMAN COMES The most significant difference between these two plans is when you are taxed. The contributions you make to traditional IRAs use pretax dollars, whereas Roth IRAs use post-tax contributions. This means that while you may have less money to contribute to your Roth IRA, the gains it makes as it grows can be withdrawn tax-free, so long as you follow the withdrawal rules. Meanwhile, traditional IRA withdrawals are treated as regular income and are taxed accordingly. MUST BETHIS SHORTTO RIDE While the tax benefits of a Roth IRA may sound attractive, not everyone has access to this savings plan. If you have a high income, you may be disqualified from participating — for example, those who had a modified adjusted gross income of greater than $137,000 ($203,000 for couples) in 2018 cannot invest in a Roth IRA. However, traditional IRAs do not have these restrictions.
TIMING IS EVERYTHING
Both forms of IRAs have certain time and age restrictions. For example, you can no longer contribute to a traditional IRA after you turn 70, and you will be required to start making withdrawals half a year later — regardless of whether you need the money. While Roth plans don’t have these cutoffs and requirements, you must wait five years before you can withdraw any of your contributions without tax penalties. Certain hardship and education withdrawals are exempt from this five-year rule, but for those looking to enjoy retirement with a Roth IRA, saving sooner is better than waiting. Nuances like these make choosing the right IRA so important. Your financial advisor can help guide you to a decision that best matches your income and retirement goals.
Inspired by CookieAndKate.com
Gazpacho, an Andalusian soup made of blended vegetables and traditionally served cold, is the perfect refresher on a warm summer day.
2 1/2 lbs. ripe tomatoes; cored, seeded, and cut into 1-inch chunks 1 small cucumber; peeled, seeded, and cut into 1-inch chunks
1 small Vidalia onion, peeled and cubed 1/4 cup basil leaves 1 clove garlic, peeled
• • • • •
1/4 cup extra-virgin olive oil
2 tbsp sherry vinegar
1 red bell pepper; cored, seeded, and sliced into ribbons
Salt and freshly ground black pepper, to taste
1. Place a blender and medium mixing bowl on your workstation. 2. Divide the tomato chunks, cucumber pieces, and bell pepper slices evenly between blender and bowl. Place entire onion in blender. 3. Add basil, garlic, olive oil, vinegar, salt, and pepper to blender. Blend on low, gradually raising speed to high until smooth, about 2 minutes. 4. Add blender contents to bowl and mix until just broken up, about 10–20 seconds. 5. Let mixture sit in fridge for a minimum of 2 hours. Transfer to bowls and serve.
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