A Roth account is a type of individual retirement account (IRA) that is funded with after-tax dollars. This means that the money you contribute to a Roth account has already been taxed and you will not receive a tax deduction for your contributions. However, the money you contribute to a Roth account grows tax-free and you can withdraw your contributions and any earnings on them tax-free in retirement.
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If a drop in income at retirement has put you in a lower tax bracket, find out whether tactical Roth conversions now could reduce your tax liability forever.
Roth conversions are useful in the right circumstances, but "always convert" is a dangerous motto. Here are five situations where a Roth is a deal-breaker.
Very rarely do I get a question in my email inbox to which I don't know the answer. This was one of those times. The post Mega Backdoor Roth 401(k) Contributions Instead of Roth Contributions? appeare...
You should not use the terms "always" and "never" when it comes to the 401(k) vs. Roth issue. Here's why you probably need some of both. The post Don’t Roth All of Your 401(k) Money appeared first on ...
A Roth conversion can raise your Medicare premiums two years later. Every mistake on this list comes with a solution. The post 16 Roth IRA and Roth Conversion Mistakes That Cost You in Taxes appeared ...
Phasing out full-time work creates a unique transition window for Roth conversions. But watch out for these tax traps.
Schedule a Free Financial Assessment with an experienced professional: https://bit.ly/YMYWassessC Joe Anderson, CFP® and Big Al Clopine, CPA are spitballing Roth conversions from every angle today on ...
The 2025 tax law changed the factors involved in the decision to convert a traditional IRA to a Roth.
Roth conversions can be a game-changer for retirees with pensions facing higher tax rates. Find out how much you know about conversions' impact on your money.
Retirees with pensions and large tax-deferred accounts often find themselves pushed into permanently higher tax brackets. Here's what you can do about that.
Here's a little history on the Roth IRA, when the backdoor was left open for high earners, and why the government allows us to do this. The post Why the Front Door Is Locked: The Origins of the Backdo...
This is how you can sidestep the "Social Security tax torpedo," a common issue where tax-deferred retirement accounts unexpectedly increase your tax burden.
Schedule a Free Financial Assessment with an experienced professional: https://bit.ly/YMYWassessC Today on Your Money, Your Wealth® podcast number 595, Joe Anderson, CFP® and Big Al Clopine, CPA spitb...
Learn how Roth conversions work, when they may make sense, and how taxes, RMDs, Medicare premiums and withdrawal rules may affect your retirement plan.
Discover how a 69-year-old engineer can successfully convert a $1.2 million IRA to a Roth before RMDs begin. Learn about IRMAA, tax issues and legacy planning.
Plunging stock prices may keep investors up at night. But there's a silver lining to a down market: it's a prime time to save taxes on a Roth IRA conversion.
Paul and Angela in Florida are 52 and 45. What's the earliest the two of them can walk away from work at the same time, so Paul can spend a whole lot more time in the boat? That’s today on Your Money,...
A custodial Roth IRA lets parents help a child with earned income start building long-term wealth. By starting early, children gain decades of potential tax-free growth while learning the value of sav...
Roth conversions sound like a no-brainer — pay more tax now to pay less in future. But you need to understand your tax bracket to make sure they'll work for you.
Two CFP® professionals answer real questions on Roth conversion timing, the pro rata rule, and avoiding surprise Medicare or ACA costs. The post Backdoor Roth, Mega Backdoor Roth & Your IRMAA/ACA Cost...
Schedule a Free Financial Assessment with an experienced professional: https://purefinancial.com/lp/free-assessment/?utm_source=captivate&utm_medium=podcast&utm_campaign=free-assessment&utm_content=ym...
Before you touch your retirement fund, consider how taxes and financial aid rules change the math. In this week's Wealth Wise column, we break down the right choice.
If you could do a Roth conversion at a discount (pay less in tax than you would expect), would it be a more attractive play to you? The post Do a Roth Conversion at a Discount appeared first on The Wh...
A Roth conversion is a powerful tax-saving tool, but there are several situations where taking that leap might actually cost you more in the long run.
This Roth retirement savings strategy allows high earners to sock away up to $72,000 a year — if their workplace plan permits it.
Roth vs. Traditional is a tax‑timing decision: pay tax now or later. Roth suits low‑bracket earners; Traditional helps high‑bracket savers; late‑career planning favors strategic conversions. Blending ...
I've got a decent chunk saved for retirement (to the point where I'm beginning to back off on contributions a bit), but I'm still a few years out, so I have some time to make some adjustments. What ar...
For those who are between 59 1/2 and 65, do look into doing (some) Roth conversions within your IRA/401K accounts. If you don't, you may end up in a bind in the future. I did not do any Roth conversio...
Staring down a massive RMD tax bill at age 75? Relocating to a zero-tax state for a few years could slash your Roth conversion costs. Just beware of the pitfalls.
Clients can maximize profits by paying the tax bill outside of the conversion — and more reminders for advisors before they guide clients through Roth conversions.
I am thinking of rolling my 401K which has a mix of mostly Roth and the company match in pre-tax into my existing Rollover IRA and Roth IRA. It seems like it will be simpler to manage and I will be ab...
Financial Assessment (Meet with an experienced professional): https://bit.ly/PureFreeAssessment 11 rapid-fire spitballs today from Joe Anderson, CFP®, and Big Al Clopine, CPA, on Your Money, Your Weal...
Schedule a free financial assessment with an experienced professional at Pure Financial Advsiors: https://purefinancial.com/lp/free-assessment/?utm_source=captivate&utm_medium=podcast&utm_campaign=fre...
Your spouse and children could be bumped into higher tax brackets if you leave them a substantial sum in an IRA. Partial Roth conversions now can help.
Although this show does not provide specific tax, legal, or financial advice, you can engage Devin or John through their individual firms. Contact Devin's team at https://carrolladvisory.co/podcast1 C...
When it comes to retirement savings, Roth IRAs are among the most powerful tools for achieving tax diversification and financial flexibility. Knowing how and when to tap into your Roth IRA can make a ...
Financial Assessment (Meet with an experienced professional): https://bit.ly/PureAssessment Free Financial Resources in This Episode: https://bit.ly/ymyw-585 (full show notes & episode transcript) Tod...
The established wisdom is never to touch your Roth IRA, but if it contains a large sum and you have a pension, too, here's when you should tap into it first.
McDreamy Dempsey wants to know if converting to Roth in the 37% tax bracket ever makes sense, and Gary in La Crosse warns Joe Anderson, CFP® and Big Al Clopine, CPA about Roth conversion "lag" and whe...
Joe Anderson, CFP® and Big Al Clopine, CPA spitball Roth conversions, capital gains, and retirement readiness from every angle, today on Your Money, Your Wealth® podcast number 556. Joe Momma from Vir...
In this week's Ask the Editor Q&A, Joy Taylor answers questions on Roth IRAs and the five-year rule, including contributions and conversions.
A law requires the rollover money to have been in the 529 for at least 15 years. But it isn’t clear what happens if you change the account’s beneficiary.
Lower tax brackets and a bonus senior deduction may make 2026 a good year for a Roth conversion.
Sometimes a Roth conversion isn't right for you — or at least not right now. A financial adviser explains what you should consider before getting involved.
Most physicians spend their peak earning years maxing out pre-tax retirement accounts, reducing taxable income, and deferring the tax bill ... Read more
June in Washington State is 62 with $2.5 million saved and a $350,000 pension on the table. Should she take the lump sum or the monthly check for life? Spoiler alert: there's a 3-to-1 vote in the stud...
A mega backdoor Roth IRA allows high-income earners to potentially move tens of thousands of dollars into a tax-free retirement account. This is how it works.
Roth conversions have become a hot financial buzzword in recent years, but they're frequently misunderstood. Here's why they aren't the best move for everyone.
I left my job in 2025 but contributed to my Roth IRA because I was still working in that year. This year, I started working as a W-2 contractor for my former company through a contracting company. I t...