Tag: Roth IRA
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For California small business owners, integrating family with enterprise isn’t just sentimental—it’s a sophisticated financial strategy. Robert and Maria Chen of Los Angeles County have transformed their children’s summer jobs into a comprehensive wealth-building plan. This blueprint combines California-specific tax optimization, retirement investing, and education funding within the state’s unique regulatory landscape. Part 1: The…
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Roth IRAs are powerful tools for building tax-free retirement wealth, but the 5-year rules for withdrawals often trip people up. Let’s demystify these rules for both contributions and conversions, using common real-life scenarios for people at different stages — young professionals, mid-career savers, and retirees. What Are the Two 5-Year Roth IRA Rules? 1. The…
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Roth IRAs offer tax-free growth and tax-free withdrawals in retirement—but only if you follow the rules. One of the most misunderstood aspects is the “5-year rule”, which plays a different role depending on your age and what kind of withdrawal you’re making (contributions, earnings, or conversions). Let’s break down how the 5-year rule works before…