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Health and Wellness magazine was able to sit down for a heart-to-heart about Roth IRA’s with Mr. Dale Cebert, Private Wealth Advisor and President of Cebert Wealth with Ameriprise Financial. Dale is passionate about finances and his clients. Dale offers advice in simple terms to those of us who need more than just catchphrases.
H&W asks: What are the benefits of a Roth IRA?
Dale Cebert: A Roth IRA offers you tax-free withdrawals. When your money is in a Roth IRA for at least 5 years, you will not pay income taxes on the money you take out.
H&W: How does a Roth IRA work if I receive Social Security?
Cebert: Roth distributions are tax-free. They do not count towards the income threshold for Medicare premiums, Social Security taxation or taxable net income.
H&W: Do I have to take out a mandatory amount each month?
Cebert: No. There are no required minimum distributions with a Roth IRA. Your account can continue to grow over time, which means you can still earn retirement income even after retirement.
H&W: What if I pass before I have drawn out all the amount in the IRA?
Cebert: The Roth IRA can be good way to share your legacy. There are some distribution requirements for non-spouse beneficiaries, but beyond that,
distributions are free of income taxes and penalties.
H&W: Sounds like a great plan. So how does converting to a Roth work?
Cebert: If you have money from an IRA or an employer-sponsored plan, my team and I can help you convert it to a Roth IRA. Earnings and any money that was contributed pretax are subject to income tax for the year you convert.
Converting an employer-sponsored plan to a Roth IRA could be especially beneficial if you have after-tax money in a 401(k) plan. You may be able to convert after-tax money to a Roth IRA tax-free. Your plan administrator and tax adviser can check to see if this is possible for you.
H&W: What would be an example of an “employer-sponsored plan”?
Cebert: A 401(k) would be one example. Converting an employer-sponsored plan to a Roth IRA could be beneficial if you have after-tax money in a 401(k) plan. You may be able to convert after-tax money to a Roth IRA tax-free.
H&W: What would be an example of an “employer-sponsored plan”?
Cebert: A 401(k) would be one example. Converting an employer-sponsored plan to a Roth IRA could be beneficial if you have after-tax money in a 401(k) plan. You may be able to convert after-tax money to a Roth IRA tax-free.
I talk with a lot of teachers who are worried their state teachers’ retirement account may not be enough or may not be fully funded by the time they retire. A 401 (k) could be an effective way to protect the money teachers, police officers, firefighters, and other public servants have worked so hard to earn.
H&W: Thank you, Mr. Cebert, for these interesting facts. This is excellent information that I, as someone who isn’t super well-versed in finance, can understand. Any closing thoughts?
Cebert: Sure! Ask yourself these questions and see if a Roth IRA conversion may make sense if you:
. Do you expect to be in the same or higher tax bracket in retirement?
. Do you have a long period of time before you intend to access the funds?
. Do you have money outside your retirement account(s) to pay the taxes?
. Would you like to leave a tax-free inheritance to your heirs?
. Do you have after-tax money in a 401(k) or traditional IRA?
. Are you burdened with a depressed account value due to a market downturn?
Let’s talk if you answered yes to one or more of these questions! We offer a complimentary initial consultation. Schedule a complimentary initial consultation if you’re interested in learning more about how we can help you meet your financial goals. Even if you’re already working with another professional, we can give you a new perspective and answer your
unaddressed questions.
Dale Cebert is a financial advisor in The Villages, FL, and has earned his ChFC®, CLU®, and CASL®. Dale earned a Bachelor’s Degree in Business from the University of Central Oklahoma. Cebert Wealth is celebrating its 25th year in The Villages this year.
At Cebert Wealth Management, we aim to help you feel confident, connected, and in control of your financial life. The right financial advice can help prepare you for whatever life brings – both the expected and the unexpected. You receive 1:1 financial advice based on your goals and needs when you work with us. We offer
personalized recommendations for a diversified portfolio and solutions to help protect you from uncertainty. We schedule regular meetings to review your goals, progress, and investments. Our team provides you with anytime access to your investments and digital tools to help you stay on track. Ready to learn more? Getting started is as easy as meeting for a complimentary initial consultation whenever it’s convenient for you.
Ameriprise Financial, Inc. does not offer tax or legal advice. Consult with a tax advisor or attorney.
The initial consultation provides an overview of financial planning concepts. You will not receive written analysis and/or recommendations.
Investment products are not insured by the FDIC, NCUA or any federal agency, are not deposits or obligations of, or guaranteed by any financial institution, and involve investment risks including possible loss of principal and fluctuation in value. Investment advisory products and services are made available through Ameriprise Financial Services, LLC, a registered investment adviser. Ameriprise Financial Services, LLC. Member FINRA and SIPC.
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