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9 Advantages of Choosing a Roth IRA that PBF Energy Employees and Retirees Can Utilize

'PBF Energy employees can leverage the Roth IRA's tax-free growth, flexibility in retirement withdrawals, and estate planning advantages to enhance their long-term financial strategy, especially as tax rates fluctuate over time.' – Brent Wolf, a representative of The Retirement Group, a division of Wealth Enhancement Group.

'PBF Energy employees can significantly enhance their retirement planning by utilizing Roth IRAs to maximize tax-free growth, reduce taxable income in retirement, and strategically plan for future tax changes, offering a powerful tool for long-term financial security.' – Kevin Landis, a representative of The Retirement Group, a division of Wealth Enhancement Group.

In this article, we will discuss:

The tax-free growth and withdrawal benefits of a Roth IRA and how they compare to traditional retirement accounts.
How the Roth IRA helps enhance estate planning and tax flexibility for PBF Energy employees and retirees.
Key strategic advantages, including contribution accessibility, conversions, and managing potential future tax increases.

The Roth Individual Retirement Account is an attractive option for PBF Energy employees looking to grow their wealth and create tax-efficient savings in an ever-changing Retirement Planning landscape. Its structure - which allows tax-free growth and withdrawals - gives strategic benefits for long-term financial health.

Growth & Withdrawals Without Taxes.

When PBF Energy professionals contribute to a Roth IRA, they contribute after-tax cash - money already taxed. Unlike traditional IRAs that may offer immediate tax deductions for contributions. The Roth IRA does not. But it compensates by making growth of the account and distributions during retirement fully exempt from federal tax and often not taxed at the state or local level either. This can add value to retirement savings when investments can grow tax free.

No Minimum Distributions Are Required.

There are no required minimum distributions (RMDs) during the owner's life - a major benefit for PBF Energy employees considering a Roth IRA. Some other retirement accounts require RMDs starting at age 73, that may raise taxable income. Lacking RMDs gives estate planners more freedom in estate planning and may increase the wealth passed to heirs.

Benefits of Estate Planning

Though inherited Roth IRAs require RMDs, their tax-free withdrawal benefit makes them a popular part of an estate plan. Some complicated issues for PBF Energy employees using a Roth IRA for estate planning require financial and legal advice.

Flexible Retirement Tax Planning.

And for PBF Energy retirees, Roth IRA withdrawals are tax free under certain conditions - giving you considerable flexibility with taxable income. This flexibility may let retirees switch from taxable account withdrawals to Roth withdrawals to reduce taxable income and extend the life of their retirement funds while reducing taxes.

Potential Reduction in Surtaxes

The Roth IRA may reduce exposure to Net Investment Income Tax (NIIT). Unlike traditional retirement plan distributions that might trigger NIIT tax liabilities, qualified withdrawals from a Roth IRA do not count toward income thresholds that trigger this surtax.

Managing Possible Future Tax Increases.

Historically unstable tax rates and low federal income rates mean some PBF Energy employees can take advantage of today's low tax rates on contributions and potentially save taxes should rates rise in the future.

Contribution Accessibility

A Roth IRA lets you contribute at any age as long as they have earned income. Especially for PBF Energy employees - this could let them absorb unexpected costs without a financial hitch.

Age-Related Continued Eligibility

Unlike other retirement plans that cap contributions at age sixty-two, the Roth IRA lets PBF Energy employees contribute as long as they earn income. That helps particularly if you continue to work into your later years to build your retirement savings.

Opportunities for Conversion

Those PBF Energy employees with incomes that exceed IRS contribution limits for Roth IRAs still can convert money from traditional IRAs or other retirement accounts. Taxes paid on this strategy could pay off in the long haul as you move money into an account that can grow and withdraw without tax.

It is an excellent tool for retirement fund management that offers estate planning, tax efficiency and financial flexibility. Though it provides strategic options at all income levels and career stages, it requires planning and expert advice to maximize the benefits.

Spousal IRA Contribution Benefits

The spousal IRA contribution is often overlooked but is a valuable feature of the Roth IRA for those approaching retirement. This lets the working spouse contribute to a Roth IRA on behalf of a non-working spouse - effectively doubling the household capacity for tax-free growth and withdrawals. This is particularly relevant in couples where one partner has retired early.

Articles you may find interesting:

Sources:

1. Internal Revenue Service. Roth IRA Distribution and Conversion Rules . IRS, Jan. 2024, https://www.irs.gov/Roth-IRA .

2. Hodge, Scott. Historical Tax Trends & Roth IRAs . Tax Foundation, Nov. 2023, https://taxfoundation.org/Tax-Rates .

3. Block, Sandra. Estate Planning with Roth IRAs . Kiplinger, Oct. 2023, https://www.kiplinger.com/Retirement-RothIRA .

4. Curry, Benjamin. Roth IRA Contribution and Withdrawal Flexibility . Investopedia, Dec. 2023, https://www.investopedia.com/Roth-IRA-Flexibility .

What is the primary purpose of PBF Energy’s 401(k) Savings Plan?

The primary purpose of PBF Energy’s 401(k) Savings Plan is to help employees save for retirement by allowing them to contribute a portion of their salary on a tax-deferred basis.

How can I enroll in PBF Energy's 401(k) Savings Plan?

Employees can enroll in PBF Energy's 401(k) Savings Plan by completing the enrollment process through the company’s designated benefits portal or by contacting the HR department for assistance.

Does PBF Energy offer matching contributions to the 401(k) Savings Plan?

Yes, PBF Energy offers matching contributions to the 401(k) Savings Plan, which helps employees increase their retirement savings.

What types of investment options are available in PBF Energy’s 401(k) Savings Plan?

PBF Energy’s 401(k) Savings Plan offers a variety of investment options, including mutual funds, target-date funds, and other investment vehicles to suit different risk tolerances.

When can I start contributing to PBF Energy’s 401(k) Savings Plan?

Employees can start contributing to PBF Energy’s 401(k) Savings Plan after they have completed their eligibility requirements, typically within the first few months of employment.

What is the maximum contribution limit for PBF Energy’s 401(k) Savings Plan?

The maximum contribution limit for PBF Energy’s 401(k) Savings Plan is determined by the IRS limits, which may change annually. Employees should refer to the plan documents for the current limits.

Can I take a loan against my 401(k) savings at PBF Energy?

Yes, PBF Energy’s 401(k) Savings Plan allows employees to take loans against their savings under certain conditions. Employees should review the plan documents for specific terms and conditions.

What happens to my 401(k) savings if I leave PBF Energy?

If you leave PBF Energy, you have several options for your 401(k) savings, including rolling it over to another retirement account, cashing it out, or leaving it in the PBF Energy plan if permitted.

Is there a vesting schedule for PBF Energy's matching contributions?

Yes, PBF Energy has a vesting schedule for matching contributions, which means that employees earn ownership of the matching funds over time based on their years of service.

How often can I change my contribution amount to PBF Energy’s 401(k) Savings Plan?

Employees can change their contribution amount to PBF Energy’s 401(k) Savings Plan at designated times throughout the year, as outlined in the plan documents.