Sentences with phrase «money upon withdrawal»

Not exact matches

In a Traditional IRA, our money is taxed only upon withdrawal; in a Roth IRA, we contribute post-tax dollars that grow tax - free and we're not taxed when we withdraw them in retirement.

The benefit of that is you're taking money that's pre-tax and is going to be fully taxable in retirement, moving it to after - tax money and thus tax - free upon withdrawal.

You don't receive a tax deduction for your contribution to the plan (i.e., it's made with «after - tax» money that you've already paid on) but the funds, as well as any growth, will be free of tax upon withdrawal.

It is a powerful tool because after - tax money is contributed to the account and grows tax - free, and withdrawals can be made tax - free upon reaching the age of 59 1/2.

Stocks should have higher growth than bonds so if you put them in a tax free (upon withdrawal) account like a Roth IRA you will have more money than if you were to put bonds in your Roth IRA.

However, the money you eventually take out of your 401 (k) will be taxed upon withdrawal at your current tax rate.

Now you don't get a tax deduction, but once the money goes into the Roth IRA, that initial contribution, your principal, future growth, income, are all 100 % tax - free upon withdrawal at retirement.

If the investment is stock shares or mutual fund shares and the only thing that has happened since you invested is that the per - share price went up (there were no dividends paid or mutual fund distributions that occurred between the purchase and today) so your investment is now worth $ 12,000, then by all means you can withdraw $ 10,000 from your investment, but you can not withdraw only the original investment and leave the gains in the account; your withdrawal will be partly the original post-tax money that you put in (and it will be not be taxed upon withdrawal) and partly the gains on which you will owe tax.

The accounts offer protection from the REIT tax rules since money made is only taxed upon withdrawal, if at all.

But since they're taxed as income, that means more money taken out upon withdrawals, lessening the value of your account and offsetting your earnings.

Only upon withdrawal of the money are taxes due on the growth portion.

However, your money grows tax - free, meaning it is not taxed upon withdrawal.