IRA 101
If the company you work for doesn’t offer a 401(k) or similar retirement plan, then you may want to consider investing in an Individual Retirement Account, or IRA. An IRA acts as a shell for your funds and offers more investment choices than a 401(k), making it an attractive option. However, the two most popular types of IRA — the traditional IRA and Roth IRA — can be difficult to distinguish between. Here’s a quick rundown of their quirks: TAXABILITY The biggest difference between a traditional IRA and a Roth IRA is that the funds you deposit in a Roth have already been taxed, whereas traditional IRA contributions are pre-tax (deposited without taxes deducted). As a result, when you withdraw your money from a traditional IRA, you have to pay taxes on it, while funds pulled from a Roth IRA can be withdrawn without additional charge because the taxes were paid up front. CONTRIBUTIONS Both IRA types have an annual maximum contribution of $6,000 for 2019, plus an additional $1,000 catch-up contribution if you reach age 50 by the end of the tax year. Roth IRAs have no age limit for contributions, but traditional IRAs cut them off when you reach the age of 70 1/2. Another option is to open one of each account type. If you do so, however, your total contribution to both accounts has to stay below the limit for the tax year, including the catch-up.
WITHDRAWALS
As long as you’ve had your account for at least five years, you can withdraw money from a Roth IRA at any time or age, though if you withdraw funds before you are 59 1/2, you may have to pay income taxes on them. You’re not required to ever withdraw money from a Roth, and that leaves you the option to pass it on to your heirs. In contrast, if you try to withdraw money from a traditional IRA before you’re 59 1/2, you will have to pay a 10% tax penalty in addition to income taxes, and Required Minimum Distributions are required each year once you reach 70 1/2.
If you have any questions about setting up an IRA or Roth IRA, don’t hesitate to call DuPont Wealth Solutions.
SUDOKU
IMPOSSIBLY SILKY MASHED POTATOES
Inspired by Food &Wine magazine
Mashed potatoes are a staple of every American household, but this decadent variation created by Anthony Bourdain is worthy of a Fourth of July feast.
INGREDIENTS
• 4 Ibs. mediumYukon Gold potatoes, peeled and halved • 6 sticks cold unsalted butter, cut into 1/2-inch cubes • 1/2 cup heavy cream • Kosher salt
DIRECTIONS
1. In a stockpot or large saucepan, submerge potatoes in just enough water to cover them. Bring to a boil, add 2 tbsp of salt, and simmer until tender, about 20 minutes. 2. Drain potatoes and let cool for 3 minutes. 3. Using a ricer, grate potatoes into the original saucepan over medium heat. 4. With a wooden spoon, stir potatoes until they begin to stick to pan and steam, about 2 minutes. 5. Add butter in four equal batches, stirring constantly and adding each batch only once the last has been fully incorporated into the saucepan. 6. Stir in cream, season liberally with salt, and serve immediately.
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