Atul Makharia holds a BS in chemical engineering and an MBA in finance. For more than a quarter of a century, he has served in the financial sector holding executive leadership roles. At Cola Wealth Advisors in Lexington, South Carolina, Atul Makharia helps clients meet their financial goals through a wide range of investment options, including retirement plans.
Traditional 401(k)s and Roth IRAs are popular tax-advantaged retirement saving options. A traditional 401(k) plan varies from a Roth 401(k) in terms of the tax treatment of contributions and withdrawals. Contributions to Roth accounts are made with after-tax dollars. However, qualified Roth 401(k) withdrawals in retirement are tax-free. On the other hand, contributions to traditional 401(k) accounts are made with pre-tax dollars, but are considered taxable income at the time of withdrawal.
The two retirement savings options also differ in accessibility. Investors with traditional 401(k) accounts can start withdrawing their money at age 59 1/2. Roth 401(k) investors can start withdrawing at the same age, but they must have held the account for five years. The account holders may also receive access to their funds because of disability or death.
Securities and advisory services offered through Centaurus Financial, Inc. Member FINRA and SIPC, a Registered Investment Advisor. Centaurus Financial, Inc., and Cola Wealth Advisors are not affiliated companies. Please visit Cola’s website for more information: https://www.colawealthadvisors.com/.
Traditional 401(k)s and Roth IRAs are popular tax-advantaged retirement saving options. A traditional 401(k) plan varies from a Roth 401(k) in terms of the tax treatment of contributions and withdrawals. Contributions to Roth accounts are made with after-tax dollars. However, qualified Roth 401(k) withdrawals in retirement are tax-free. On the other hand, contributions to traditional 401(k) accounts are made with pre-tax dollars, but are considered taxable income at the time of withdrawal.
The two retirement savings options also differ in accessibility. Investors with traditional 401(k) accounts can start withdrawing their money at age 59 1/2. Roth 401(k) investors can start withdrawing at the same age, but they must have held the account for five years. The account holders may also receive access to their funds because of disability or death.
Securities and advisory services offered through Centaurus Financial, Inc. Member FINRA and SIPC, a Registered Investment Advisor. Centaurus Financial, Inc., and Cola Wealth Advisors are not affiliated companies. Please visit Cola’s website for more information: https://www.colawealthadvisors.com/.
