ROTH IRA LLC Contribution Facts

  • Contributions can be made if you have earned income
  • You contribute already taxed funds (after-tax funds) to a Roth IRA
  • You cannot take a tax deduction for your Roth IRA contribution like you can for a Traditional IRA
  • You can make Roth IRA contributions both before and after age 70 ½ whereas Traditional IRAs cannot accept contributions after you reach age 70 ½.
  • Qualified withdrawals are income-tax free (a withdrawal made after any Roth account has been established for 5 years and the Roth owner is over the age of 59 ½ or qualifies for the first-time home buyer exception or the distribution is due to the account owner’s death or disability)
  • You can also have and contribute to a spousal Roth IRA, based on your income even if your spouse has no earned income
  • Withdrawals of converted amounts may be subject to the 10 percent early distribution penalty if the 5-year exclusion period has not been met (this is a separate 5-year period from the one noted above) and the Roth owner is under age 59 ½ at the time of the withdrawal
  • Roth IRAs are exempt from Required minimum distributions for owners only
  • Roth IRA designated beneficiaries can stretch distributions over their lifetimes just like traditional IRA beneficiaries
  • All contributions and distributions must flow through the Roth IRA not the LLC.
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About Mark Nolan

We help our clients take control of their retirement money. Our products and services provide our clients the freedom to invest their retirement savings in their own business as wells as alternative investments such as real estate, private companies, promissory notes, precious metals, tax liens and equities. Learn more about Mark Nolan and My Solo 401k Financial >>

  • About MySolo401k

    We help our clients take control of their retirement money. Our products and services provide our clients the freedom to invest their retirement savings in their own business as wells as alternative investments such as real estate, private companies, promissory notes, precious metals, tax liens and equities.
    Learn more

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