Lincoln Financial Advisors Corp. and its representatives do not provide legal or tax advice. We encourage you to consult a legal or tax advisor regarding any legal or tax information as it relates to your personal circumstances.
Contributions to a traditional 401(k) may be tax-deductible but deductibility depends on your income and the earnings grow tax-deferred until withdrawn. Withdrawals prior to 59 ½ may be subject to a 10% federal income tax penalty and state income taxes (if applicable). Qualified earnings withdrawals from a Roth 401(k) taken during retirement will not be subject to income tax, provided you’re at least 59 ½ and you’ve held the account for five years or more.
Roth 401(k) employer matches (if applicable) will still be made with pre-tax dollars, and the match will accumulate in a separate account that will be taxed as ordinary income at withdrawal.
Gabe Martin is a registered representative of Lincoln Financial Advisors Corp. Securities and investment advisory services offered through Lincoln Financial Advisors Corp., a broker-dealer (member SIPC) and registered investment advisor. Insurance offered through Lincoln affiliates and other fine companies.
Bluestone Wealth Partners is not an affiliate of Lincoln Financial Advisors Corp.