Aegis Capital Corp
Executive Managing Director
Thomas M. Dowling is an Executive Managing Director with Aegis Capital Corp and works both out of Hilton Head, SC and New York, NY. Prior to Aegis Capital, Thomas directed the East Coast expansion of a publicly-traded Investment Banking firm and was Vice President and Senior Advisor of a regional Investment Advisory organization. He was a member of each firm's Chairman's Council and President's Circle. Shortly thereafter, he founded Quadstar Capital Advisors, which provides Advisory Services to Ultra-High Net Worth clients.
Thomas has been featured in various publications and has been a guest speaker at various financial organizations such as the Evelyn Brust Financial Research and Education Foundation and the South Carolina Business Review. He has also been a volunteer for The Dale Carnegie Training Institute which helps people develop leadership, communication and public speaking skills. Additionally, he is the founder and chairman of The Resource Group which is a forum that allows business owners to collaborate in order to help each other gain insight and knowledge to better run their business.
Thomas’s goal is to help people answer two of the most fundamental, yet important, financial questions: "will I make it?" and "what can stop me from achieving it?". After working towards these goals for over 20+ years, he has found that most people have no idea what “it” is. His passion is to help people understand what their “it” is. He believes it is sad when someone is marching towards their goals and dreams and then gets blindsided by something they did not anticipate or overlooked.
Thomas received his BS in Business Administration with a minor in Finance from the State University of New York and completed the graduate-level Certified Investment Management Analyst program (CIMA®) held in conjunction with The Wharton School, University of Pennsylvania. Thomas is proud to hold both the Chartered Financial Analyst designation, as well as the CERTIFIED FINANCIAL PLANNER™ certification, which puts him in a group of fewer than 2,800 professionals in the United States who hold both certifications. Furthermore, he is a Chartered Retirement Plans Specialist.
Thomas is currently a member of the CFA Institute, New York Society of Security Analysts, CFA Society of South Carolina, Financial Planning Association, the National Institute of Certified College Planners as well as the Investment Management Consultants Association.
Thomas attributes his understanding of what is most important in life to his wife and two sons.
BS, Business Administration, State University of New York
Certified Investment Management Analyst Program, University of Pennsylvania, The Wharton School
Nothing contained in this publication is intended to constitute legal, tax, securities or investment advice, nor an opinion regarding the appropriateness of any investment, nor solicitation of any type. The general information contained in this publication should not be acted upon without obtaining specific legal, tax, and investment advice from a licensed professional.
Registered Representatives offer securities, insurance and advisory services offered through Aegis Capital Corp, member FINRA/SIPC. No investment strategy or program can guarantee a profit or protect against loss.
Making the assumption that your current income level allows for a Roth IRA contribution it is usually more beneficial for a 20-something to contribute to a Roth IRA.
Remember the difference between a Traditional IRA and a ROTH IRA.
Traditional IRA is pretax dollars contributed (you have not paid income taxes on those funds) all gains grow tax free but when you withdraw the funds the taxes are then paid as if it were income.
A ROTH IRA is after tax dollars contributed (income taxes were paid already) and then all gains are tax free and any withdrawals are tax free (assuming all proper withdrawal rules are followed).
So it is important to consider two things:
- What is my tax rate now?
- What will be my tax rate at retirement?
The assumption in this scenario is that your income level will be higher when you retire than it is now therefore, you paid less tax on the money.
Some of the main differences are:
- A 401(k) plan is an employer-sponsored plan therefore you must work for the company in order to participate in the 401(k). In most cases anyone under the age of 70.5 who earns income can participate in an IRA.
- The 401(k) plan usually has better creditor protection than an IRA since it is an employer-sponsored investment plan.
- 401(k) plan contributions are usually made through payroll deductions. An IRA contributions usually are done by the individual writing the check and depositing in the IRA.
- A 401(k) Plan can offer loan privileges. An IRA does not have loan privileges.
- A 401(k) Plan can have an employer match provision. An IRA does not
- Contribution amounts are higher for a 401(k) ($18K for 2017). An IRA has a contribution amount of $5,500 (not including catch up)
- The catch up amount in a 401(k) is $6,000 in 2017. An IRA catch up is $1,000 in 2017.
- The investment options in a 401(k) are usually more limited than an IRA
It sounds as if your situation is more difficult to answer than can be done here, therefore you should consult a qualified attorney but in regards to your specific question of early withdrawals from an IRA you can withdraw money from your IRA whenever you choose.
If you are over 59 ½ you will not pay a penalty.
If you are under 59 ½ the penalty is 10% of the withdrawal amount.
There are a few exceptions to the early withdrawal penalty rule in an IRA such as using the funds for qualified higher education expenses, qualified first time homebuyers up to $10k, health insurance premiums paid while unemployed or amount of unreimbursed medical expenses in excess of 7.5% of your Adjusted Gross Income or 10% if under age 65. Keep in mind you need to keep record of all these expenses so you can prove if required.
The situation that is also available is a series of substantially equal periodic payments (called a 72t distribution). In short, a SOSEPP is when you determine an annual distribution amount using one of three methods.
Required Minimum Distribution Method
Fixed Amortization method
Fixed Annuitization Method
You must keep the payments going for 5 years or until you reach age 59 ½ whichever is longer.
Here is a link to the IRs website for further answers https://www.irs.gov/retirement-plans/retirement-plans-faqs-regarding-substantially-equal-periodic-payments#1
You should consult with a qualified tax professional as well as a retirement plan specialist so she can advise you on any tax ramifications you may incur and/or all the advantages and disadvantages for your personal circumstance. Remember you will pay tax on all of these distributions.
- Tax free accumulation and withdrawal of your funds
- Can avoid probate because of the Beneficiary designation
- Can withdraw principal prior to 59 ½ without any penalties
- Not required to withdraw funds after 59 ½
- Income restrictions for opening a Roth IRA
- Will get penalized on withdrawals of earnings prior to 59 ½
- Can only contribute $5,500 ($6,500 if you are over 50)
- Must have the Roth IRA account opened for 5 years before you can withdraw your earnings tax free
With a regular account you will not have any restrictions on how much you contribute nor withdraw from your account, however your earnings will be subject to capital gains tax.
For a husband to receive spousal benefits, the wife needs to be receiving retirement or disability benefits. This is not the same as retiring. You can still work and receive SS benefits.
Based upon the information you provided, you are not currently receiving Social Security benefits therefore your husband will not be able to file for Spousal Benefits.
You are able to file at 62 years old (for a permanently reduced benefit) which would then allow your husband to file for spousal benefits. You can view and calculate how much on the Social Security Administration website here https://www.ssa.gov/oact/quickcalc/spouse.html