Cooper simmermanequitable com or 202459 7930 ROTH IRA

Cooper. simmerman@equitable. com or (202)459 -7930 ROTH IRA & 401 KS, WHICH ONE IS BEST FOR RETIREMENT ? BY J. COOPER SIMMERMAN, MBAA PERSONAL FINANCIAL CONSULTANT EQUITABLE

Cooper. simmerman@equitable. com or (202)459 -7930 LET’S START WITH WHO I AM • J. Cooper Simmerman, MBA • I am based out of Arlington, VA and serve clients in MD, DC, VA, WV and PA. • I help people with things like Insurance, Investing, Retirement. • Our team works with a lot of government employees and is familiar with the benefits packages.

Cooper. simmerman@equitable. com or (202)459 -7930 WHAT IS RETIREMENT? • Retirement simply means a period of life when you do not hold the same level of work you once did during your career. • Retirement is different for everyone (lifestyle, travel, expenses, hobbies, goals) • Regardless of what you want to do, building a PLAN for retirement will help you enjoy your years after your career.

Cooper. simmerman@equitable. com or (202)459 -7930 HOW DO PEOPLE SAVE FOR RETIREMENT? Many different ways! • Most Common: 401 k accounts at place of work. • These can also be called Thrift Savings Plan, 403 b, 457. • Most companies offer a “match” of our contributions. (you put in 5%, they put in 5%) • You can contribute up to $19, 500 PRE TAX dollars each year. If you are over 50 years old, you can contribute up to $26, 000.

Cooper. simmerman@equitable. com or (202)459 -7930 WHEN DO YOU PAY TAXES ON 4 O 1 K ? • When you put money into a 401 k plan, you do not pay the taxes on those dollars now. You “defer” the tax liability until you are retired. • When you take money OUT of your 401 k, you will pay whichever TAX RATE that you fall into. (depends on your income in retirement) • Once you are older than 59. 5 there is no government 10% early withdrawal penalty

Cooper. simmerman@equitable. com or (202)459 -7930 CAN TAX RATES CHANGE? ? YES !! Here comes a potential problem for retirement taxes. WHEN tax rates increase in the future… that means that you will have to pay higher taxes on your 401 k money when you are retired… TAX Rates were lowered in 2018, but are going to increase back to their levels on 12/31/2025. Source: https: //taxfoundation. org/tax-reform-isnt-done/

Cooper. simmerman@equitable. com or (202)459 -7930 WHAT DOES THIS MEAN? • That means if ALL of your retirement savings are inside of PRE TAX accounts (401 k, 403 b, 457, TSP) that it is more than likely you will be paying higher taxes on that money when you retire. What does that mean? • Less money to live on, potentially have to change retirement plans, change retirement age, change retirement life style. Etc. )

Cooper. simmerman@equitable. com or (202)459 -7930 HOW CAN YOU GET “TAX FREE” RETIREMENT MONEY? Since we don’t know for sure when you will retire and what tax rate exactly will be like when you choose to retire, having TAX FREE RETIREMENT income is important. How can you get TAX FREE Retirement Income? Using a ROTH IRA is the most common way do to this.

Cooper. simmerman@equitable. com or (202)459 -7930 ROTH IRA FACTS • Only earned income can be contributed to a Roth IRA. • You can contribute to a Roth IRA only if your income is less than a certain amount. • The maximum contribution for 2020 is $6, 000; if you’re age 50 or over, it is $7, 000. • You can withdraw contributions tax-free at any time, for any reason, from a Roth IRA. • In 2020, due to the CARES Act, you can withdraw as much as $100, 000 from a Roth or traditional IRA without paying a penalty for being under 59½ if you have been affected by COVID-19.

Cooper. simmerman@equitable. com or (202)459 -7930 CAN EVERYONE USE A ROTH IRA? Some people will make too much money to be eligible for ROTH IRA Contributions Depending on how you file your taxes, you may or may not be able to use a ROTH IRA INCOME AND CONTRIBUTION LIMITS Filing Status 2019 MAGI 2020 MAGI Contribution Limit Less than $193, 000 Less than $196, 000 $6, 000 ($7, 000 if age 50+) $193, 000 to $202, 999 $196, 000 to $205, 999 Begin to phase out $203, 000 or more $206, 000 or more Ineligible for direct Roth IRA Less than $10, 000 Begin to phase out $10, 000 or more Ineligible for direct Roth IRA Less than $122, 000 Less than $124, 000 $6, 000 ($7, 000 if age 50+) $122, 000 to $136, 999 $124, 000 to $138, 999 Begin to phase out $137, 000 or more $139, 000 or more Ineligible for direct Roth IRA MARRIED FILING JOINTLY MARRIED FILING SEPARATELY* SINGLE

Cooper. simmerman@equitable. com or (202)459 -7930 CONCLUSION • Knowing what retirement account you should use is PERSONAL decision. Everyone’s situation is different and you should make educated financial decisions. I directly help individuals and families make these decisions.

Cooper. simmerman@equitable. com or (202)459 -7930 WHAT DOES A MEETING WITH ME LOOK LIKE? • I am more than willing to use video conferences, relay, and interpreter services to help us communicate effectively. • A meeting with me to see how I can help DOES NOT COST money. It is complimentary. • I work with many federal and state government employees. I know the benefits packages well and can help make planning decisions.

Cooper. simmerman@equitable. com or (202)459 -7930 HOW TO REACH ME. To schedule a meeting to discuss options, please feel free to reach out to me directly. My cell phone number is (202)459 -7930 My email address is Cooper. Simmerman@equitable. com

Cooper. simmerman@equitable. com or (202)459 -7930 THANK YOU! If there any questions, I can hang around to answer!