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Passive Income
Using Retirement Accounts to Build Wealth
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[QUOTE="selena1, post: 303975, member: 97995"] It’s important to note that each type of retirement account has its own set of rules and regulations regarding contributions, withdrawals, taxes, and penalties. For example, with 401(k)s and traditional IRAs, withdrawals before age 59 ½ are subject to a 10% penalty in addition to income taxes. On the other hand, Roth IRAs allow for penalty-free withdrawals of contributions at any time and penalty-free withdrawals of earnings after age 59 ½. When choosing a retirement account, it’s important to consider your current income level, tax bracket, and future retirement goals. It may also be beneficial to consult with a financial advisor or accountant to determine the best retirement savings strategy for your unique situation. Regardless of which type of retirement account you choose, it’s important to start saving early and consistently to ensure a comfortable retirement. [/QUOTE]
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