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	<title>New answer on: What Are The Similarities Between 401K And Roth IRA?</title>

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		<title>By: Brandi Jo Newman</title>

		<link>http://insurancelibrary.com/retirement-plans/what-are-the-similarities-between-401k-and-roth-ira</link>

		<dc:creator>Brandi Jo Newman</dc:creator>

		<pubDate>Thu, 26 Mar 2015 18:41:06 +0000</pubDate>

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		<description><![CDATA[Both have annual contribution limits:  401k = $18,000/year including employer match, Roth = $5,500/year

Both have catch up provisions if you are over 50 years of age

401(k) is tax deferred but a Roth is with after tax contributions, grows tax free and distributions are tax free.

Roths have income limits as well:

If married filing jointly and make over $181,001 annual income, ineligible for Roth.

Single - Annual income greater than $120,000, ineligible for Roth.

Neither of them have any guarantee of returns and no protection for principle. Cannot access the funds without paying 10% penalty and pay ordinary income tax on growth/contributions.

The alternative to a Roth is cash value whole life insurance - unlimited contributions and guaranteed growth with principle protection - plus asset protection and liquidity.]]></description>

		

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