Sentences with phrase «tax free distributions»

2Income tax free distributions are achieved by withdrawing to the cost basis (premiums paid) then using policy loans.

1Income tax free distributions are usually achieved by withdrawing to the cost basis (usually premiums paid), then using policy loans.

Do the immediate tax savings of traditional IRA contributions outweigh Roth IRA tax free distributions?

Not exact matches

Contributions to HSAs are made with pretax dollars (in most states), assets grow tax - free, and distributions are tax - free if used to pay for qualified medical expenses or as reimbursement for such expenses.

For example, a Roth individual retirement account offers tax - deferred growth and tax - free distributions, a winning combination for anyone trying to save for retirement.

Other facets of the Grylls plan include lifting the payroll tax - free threshold from $ 850,000 to $ 1.5 million, ensuring any money from privatisations is reinvested in infrastructure, and a renewed campaign aimed at fixing problems with WA's GST distribution.

Your contributions to a Roth IRA are not tax - deductible, but its most appealing feature is that distributions are tax - free upon retirement.

When HSA funds are used to pay for health - care expenses in retirement, patients take advantage of the tax - free trifecta: current tax deduction, tax - free growth, and tax - free distribution.

Distributions are tax - free as well.

Roth accounts grow tax free and are not subject to «required minimum distributions» at age 70 1/2.

Third of all, yes, anyone can theoretically die at any time without ever enjoying the benefits of tax - free distribution.

For instance, 1) If your tax rate is low now you'll likely save on taxes 2) If you expect higher tax rates later you'll likely save on taxes 3) It offers good flexibility with the ability to withdraw contributions penalty free 4) You aren't required to take minimum distributions at any point 5) You can continue to contribute as long as you have income.

Roth IRAs have several benefits, including the potential for tax - free withdrawals, * and no required minimum distributions during the lifetime of the original account owner.

Thus, they will reap a higher benefit with their tax - free distributions at retirement.

* A distribution from a Roth IRA is tax - free and penalty - free provided that the five - year aging requirement has been satisfied and at least one of the following conditions is met: you reach age 59 1/2, make a qualified first - time home purchase, become disabled, or die.

Instead, I'd rather take distributions, which are free from such taxes with an S - Corp.

A distribution from a Roth IRA is tax free and penalty free, provided the five - year aging requirement has been satisfied and one of the following conditions is met: age 59 1/2, disability, qualified first - time home purchase, or death.

You don't get a deduction for contributions, but qualified distributions come out tax - free.

In summary, the law expands 529 plans to include tax - free distributions of up to $ 10,000 per year per student to pay for K — 12 expenses.

A distribution from a Roth IRA is tax free and penalty free provided that the 5 - year aging requirement has been satisfied and at least 1 of the following conditions is met: you reach age 59 1/2, die, become disabled, or make a qualified first - time home purchase.

The Tax Cuts and Jobs Act approved expanded use of 529 plans to include tax - free distributions (after December 31, 2017) of up to $ 10,000 per year per student to pay for tuition at elementary or secondary public, private, or religious schooTax Cuts and Jobs Act approved expanded use of 529 plans to include tax - free distributions (after December 31, 2017) of up to $ 10,000 per year per student to pay for tuition at elementary or secondary public, private, or religious schootax - free distributions (after December 31, 2017) of up to $ 10,000 per year per student to pay for tuition at elementary or secondary public, private, or religious schools.

For example, with a combination of traditional and Roth IRA savings, you could take distributions from your traditional IRA until you reach the top of your income tax bracket, and then withdraw whatever you need beyond that amount from a Roth IRA, which is tax free, provided certain conditions are met.

A distribution from a Roth IRA is tax free and penalty free provided that the five - year aging requirement has been satisfied and at least one of the following conditions is met: you reach age 59 1/2, become disabled, make a qualified first - time home purchase, or die.

Distributions from a Roth IRA are tax - free and penalty - free provided that the five - year aging requirement has been satisfied and at least one of the following conditions has been met:

Roth IRA distributions are tax - free as along as certain conditions are met.1

Qualified Roth IRA distributions are tax - free provided a Roth account has been open for more than five years and the owner is at least age 59 1/2, or as a result of their death, disability, or using the first - time homebuyer exception.

So, I do think that for people who have accumulated most of their retirement savings within the confines of some sort of traditional tax - deferred account, for the sake of just giving yourself a little bit of flexibility in retirement to not have to take required minimum distributions from the account, to have some withdrawals coming out tax - free, I think the Roth contributions can make sense.

Tax Benefit: Earnings are tax - deferred, and distributions are tax - free (unless the amount is greater than the beneficiary's adjusted qualified education expenses for the yeaTax Benefit: Earnings are tax - deferred, and distributions are tax - free (unless the amount is greater than the beneficiary's adjusted qualified education expenses for the yeatax - deferred, and distributions are tax - free (unless the amount is greater than the beneficiary's adjusted qualified education expenses for the yeatax - free (unless the amount is greater than the beneficiary's adjusted qualified education expenses for the year).

Other strategies include taking distributions from retirement plans before 70 1/2 when the taxpayer is in a lower bracket or investing in municipal bonds in order to receive tax - free interest income.

As discussed above, notwithstanding receipt by HP Co. of a private letter ruling from the IRS and / or opinions of counsel and other external tax advisors, the IRS could assert that the distribution does not qualify for tax - free treatment for U.S. federal income tax purposes.

Accordingly, notwithstanding receipt by HP Co. of the IRS private letter ruling and the tax opinions referred to above, the IRS could assert that the distribution and / or certain related transactions do not qualify for tax - free treatment for U.S. federal income tax purposes.

Accordingly, notwithstanding receipt by HP Co. of the IRS private letter ruling and the tax opinions referred to above, there can be no assurance that the IRS will not assert that the distribution and / or certain related transactions do not qualify for tax - free treatment for U.S. federal income tax purposes or that a court would not sustain such a challenge.

It is a condition to the distribution that HP Co. receive (i) a private letter ruling from the IRS and / or one or more opinions from its external tax advisors, in each case, satisfactory to HP Co.'s board of directors, regarding certain U.S. federal income tax matters relating to the separation and related transactions, and (ii) an opinion of each of Wachtell, Lipton, Rosen & Katz and Skadden, Arps, Slate, Meagher & Flom LLP, satisfactory to HP Co.'s board of directors, regarding the qualification of the distribution, together with certain related transactions, as a transaction that is generally tax - free, for U.S. federal income tax purposes, under Sections 355 and 368 (a)(1)(D) of the Code.

In addition, certain events that may or may not be within the control of HP Inc. or Hewlett Packard Enterprise could cause the distribution and certain related transactions to not qualify for tax - free treatment for U.S. federal income tax purposes.

Earnings grow tax free, and distributions are not taxable when used...

I often recommend leaving IRAs and other tax - advantaged accounts to grandchildren, as it allows for the possibility of decades of tax - deferred and potentially tax - free distributions, which can be an extremely powerful estate transfer strategy.

Additionally, Roth IRAs are tax - free from a distribution standpoint, not only to the owner, but to the beneficiaries as well.

Distributions for qualified higher education expenses are federal income tax - free.

These distributions are tax - free because you already paid taxes on the money used to make Roth IRA contributions.

You can withdraw funds for any reason penalty - free, only paying income tax on the distributions.

A distribution from a Roth IRA is federally tax - free and penalty - free provided that the five - year aging requirement has been satisfied and one of the following conditions is met: age 59 1/2, qualified first time home purchase, or death.

A distribution from a Roth IRA is tax free and penalty free, provided that the five - year aging requirement has been satisfied and at least one of the following conditions is met: you reach age 59 1/2, become disabled, make a qualified first - time home purchase ($ 10,000 lifetime limit), or die.

Remember, all of your distributions from those tax - free accounts will be taxed at your income - tax level.

A distribution from a Roth IRA or Roth 401 (k) is tax free and penalty free, provided the five - year aging requirement has been satisfied and one of the following conditions is met: age 59 1/2, disability, qualified first - time home purchase, or death.

Yet if certain conditions are met, it is possible to take tax - and penalty - free withdrawals (aka qualified distributions) from your Roth IRA earnings before you turn 59-1/2.

Roth IRAs are not subject to RMDs during your lifetime, and distributions are generally tax - free.

A Roth IRA does not offer a tax break now, but you can take distributions tax - free upon retirement.

There are two kinds of 401 (k) s, Traditional 401 (k) s and Roth 401 (k) s. With a Traditional 401 (k), you contribute tax - free from your paycheck, but the distributions, including your earnings, are included in your taxable income upon retirement.

That means you may have to pay more in taxes for the year you complete the conversion to have the benefit of tax - free distributions later.

Tax - advantaged retirement plans such as 401 (k) s and IRAs (Traditional or Roth) are considered tax shelters because they allow individuals either to contribute pretax dollars, get tax - deferred growth on their investments and pay tax on distributions in retirement — or contribute post-tax dollars, get tax - deferred growth and take tax - free distributions in retiremeTax - advantaged retirement plans such as 401 (k) s and IRAs (Traditional or Roth) are considered tax shelters because they allow individuals either to contribute pretax dollars, get tax - deferred growth on their investments and pay tax on distributions in retirement — or contribute post-tax dollars, get tax - deferred growth and take tax - free distributions in retiremetax shelters because they allow individuals either to contribute pretax dollars, get tax - deferred growth on their investments and pay tax on distributions in retirement — or contribute post-tax dollars, get tax - deferred growth and take tax - free distributions in retiremetax - deferred growth on their investments and pay tax on distributions in retirement — or contribute post-tax dollars, get tax - deferred growth and take tax - free distributions in retiremetax on distributions in retirement — or contribute post-tax dollars, get tax - deferred growth and take tax - free distributions in retiremetax dollars, get tax - deferred growth and take tax - free distributions in retiremetax - deferred growth and take tax - free distributions in retiremetax - free distributions in retirement.