When planning for retirement, Individual Retirement Accounts (IRAs) are a popular choice for individuals looking to save and invest in a tax-advantaged way. John Hancock Personal Financial Services offers guidance and resources related to IRAs, including Roth IRAs, to help individuals navigate their retirement savings journey. It’s important to understand the basics of these accounts and how they can fit into your overall financial plan.
IRAs can be a powerful tool for long-term financial security. A Roth IRA, in particular, offers unique benefits such as potential tax-free growth and withdrawals in retirement, provided certain conditions are met. Contributions to a Roth IRA may be limited based on income and tax filing status, and annual limits are subject to change as per IRS guidelines. Understanding these contribution limits and eligibility requirements is crucial for effective retirement planning.
It’s also essential to remember that financial situations are unique, and what works for one person may not be suitable for another. Therefore, while resources like johnchen.net and John Hancock can provide valuable information about IRAs, including Roth IRA options, it’s not a substitute for personalized advice. Consulting with a qualified financial advisor is always recommended.
Disclaimer: The content of this document is for general information only and is believed to be accurate and reliable as of the posting date, but may be subject to change. It is not intended to provide investment, tax, plan design, or legal advice. Please consult your own independent advisor as to any investment, tax, or legal statements made herein.
Citations:
- Contributions to a Roth IRA may be limited based on an individual’s income and tax filing status. Annual limits are based on the IRS 2020 Contribution limits and are subject to change.
- Under the CARES Act, required minimum distributions (RMD) for 2020, including any delayed 2019 RMD (if the 2019 delayed RMD was not taken prior to January 1, 2020), have been waived and are not required to taken.
- In this document, all tax disclosures regarding Roth IRA contributions are limited to the federal income-tax code and, in particular, all references to tax-free treatment of qualified distributions are intended to refer to the treatment of such distributions at the federal level only.
- Qualified withdrawal or distribution from a Roth IRA (including the 5-year rule)—A qualified withdrawal or distribution from a Roth IRA is a payment made afer the Roth IRA account owner atains age 59½ (or afer death or disability) and afer the Roth IRA has been established for at least 5 years. In general, in applying the 5-year rule, count from January 1 of the year the first contribution was made to the Roth IRA. Roth IRA owners should contact their financial or tax advisor for specific details on the 5-year rule and whether any special rule may apply.
- In this document, all tax disclosures regarding Roth IRA contributions are limited to the federal income-tax code and, in particular, all references to tax-free treatment of qualified distributions are intended to refer to the treatment of such distributions at the federal level only.
- Qualified withdrawal or distribution from a Roth IRA (including the 5-year rule)—A qualified withdrawal or distribution from a Roth IRA is a payment made afer the Roth IRA account owner atains age 59½ (or afer death or disability) and afer the Roth IRA has been established for at least 5 years. In general, in applying the 5-year rule, count from January 1 of the year the first contribution was made to the Roth IRA. Roth IRA owners should contact their financial or tax advisor for specific details on the 5-year rule and whether any special rule may apply.
Financial planning and investment advice provided by John Hancock Personal Financial Services, LLC (“JHPFS”), an SEC registered investment adviser. Investments: not FDIC insured – No Bank Guarantee – May Lose Value. Investing involves risk, including loss of principal, and past performance does not guarantee future results. Diversified portfolios and asset allocation do not guarantee profit or protect against loss. Nothing on this site should be construed to be an offer, solicitation of an offer, or recommendation to buy or sell any security. Before investing, consider your investment objectives and JHPFS’s fees. JHPFS does not provide legal or tax advice and investors should consult with their personal legal and tax advisors prior to purchasing a financial plan or making any investment.
