Financial Advisor Portland Oregon
Vision Capital Management has been providing clients financial planning and investment management services since 1999. Visit our site to find out more
When winter melts away and springtime flowers start to bloom, your first thought is that tax filing season is around the corner, right?
If that’s just us, that’s ok, because we’re reminding our clients of a few things they can do to reduce their previous year’s tax bill. We prefer, however, to be more proactive with tax planning, so let’s talk about what you can do now and throughout the year to plan for your next tax bill.
Signed into law at the end of 2019, the SECURE Act poses potentially significant changes to most Americans’ plans for retirement and estate planning documents. SECURE stands for Setting Every Community Up for Retirement Enhancement, and it went into effect on January 1st, 2020. The goal of the bill was to address what some are considering to be a national retirement crisis.
It’s no secret that many firms today offer 401(k) retirement plans to their employees, but if your firm is offering a Roth option in its 401(k) plan, it may be worth considering for your retirement savings.
What is a Roth 401(k)?
Like a Traditional 401(k), a Roth 401(k) is a retirement savings plan offered by employers to facilitate their employees saving for retirement. The key difference is that the Roth 401(k) is funded with post‐tax dollars, whereas contributions to a Traditional 401(k) are made prior to paying income tax. The funds in both accounts grow tax‐free, meaning no capital gains tax is owed on the growth of the investments, and the annual contribution limits are the same.
