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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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...
Time is a young investor’s greatest asset. Discover how small contributions today can evolve into a tax-free fortune by the time they retire.
Saving into Roth instead of traditional accounts to bring down required minimum distributions in retirement, and whether retiring early is in the cards: that's today on Your Money, Your Wealth® podcas...
Higher-income earners must make 401(k) catch-up contributions with after-tax dollars and place them in a Roth account.
Starting in 2026, the Federal Thrift Savings Plan (TSP) began allowing in-plan Roth conversions. Here's what you should know. The post Yes, You Can Now Do Roth Conversions in Your Thrift Savings Plan ...
Don't let a Roth conversion backfire. Learn the 3 questions every investor needs to ask about tax brackets, liquidity and asset allocation before making the move.
If I understand this correctly, with the upcoming tax deduction in the Big Beautiful (Ugly grrr) Bill, we have a few years where your adjusted gross income may drop you down to a lower tax bracket, or...
Answering listener questions about how they can make smarter use of Roth accounts and tax-efficient retirement strategies and how they can think about reducing future RMDs. The post Roth Conversions f...
I just turned 65 so I will not have to start taking RMDs until I'm 75. Since IRMAA is based on income from 2 years prior, that means I won't get hit with IRMAA until I'm 77 (2 years after my RMDs star...
Are Roth conversions worth it? We'll find out, today on Your Money, Your Wealth® podcast number 576. TJ in PA is gonna have huge capital gains. Joe and Big Al spitball on whether it's worth it for him...
Instead of treating your Roth IRA as "the best account" for everything, consider keeping these seven assets in accounts with better tax benefits or flexibility.
If your adviser isn't crunching all the numbers and showing you a complete picture (in writing), then you might need to find one who will.
A stock market pullback makes a Roth conversion less expensive, turning a declining portfolio into tax advantage. The post Roth Conversions in a Down Market: The Tax Window Many Miss appeared first on...
If you convert to a Roth today, could Congress change the rules tomorrow — and should that fear stop you from taking action? In this episode, you'll learn: The truth about retroactive Roth taxation Wh...
I’m likely to retire in the next 2 years at or near full retirement age. I first opened a Roth IRA with a small amount ($1,000) in 2023 to start the 5-year clock, so I was really late to the party. I’...
Looking to start a Roth IRA by April 1 so I can get a start on the 5 year rule, I have 401K plans but will need some roth if I have any chance of ever getting under the 400% magi in 4 years, where sho...
The OBBBA's permanent lower tax rates removed the urgency for Roth conversions. Retirees thinking of stopping or blindly continuing them should do this instead.
Learn the pros and cons of different Roth conversion timing strategies and how to choose the right approach for your retirement plan. The post Timing Roth Conversions: Should You Convert at the Start ...
One thing I’ve learned from 30 years of investing and DIY money management is that there is always another way — and often the other way is more “optimized” than the current way. I put optimized in qu...
Did you know you could triple your 401(k) contributions with a mega backdoor Roth tax planning strategy? We share how to maximize your tax free retirement income.
Could a counterintuitive tax move today potentially lead to thousands in savings — or an unexpected tax trap tomorrow? In this episode, we discuss: Why some retirees intentionally harvest capital gain...
Roth conversions can save thousands in taxes, but they can also trigger Medicare IRMAA surcharges that quietly add up to more than $5,000 a year. Most retirees never see it coming, because the rules f...
In January, new Roth catch-up rules will prevent workers over 50 who earned more than $150,000 the prior year from making pre-tax catch-up contributions to their 401(k).
For most people, taxes feel like a problem for “future-you.” So, the idea of voluntarily paying taxes today can feel counterintuitive. Yet this is exactly the decision behind a Roth conversion, and it...
A year-end personal finance guide covering RMD deadlines, Roth conversions, HSA, contribution strategies, and key tax-saving steps to complete by December 31.
? Show Notes In this Thanksgiving Eve episode, Roger Whitney encourages listeners to carry gratitude into everyday life, emphasizing the value of recognizing specific moments and taking “mental snapsh...
The IRS just announced the official 2026 contribution limits for 401(k)s, 403(b)s, IRAs, Roth IRAs, SIMPLE plans, and catch-up contributions, and there are some meaningful increases you don’t wa...
While time is running out to make Roth conversions before the end of the taxable year, consider taking your time and developing a long-term strategy....
Meera and her husband have $4.5 million in retirement accounts and a $430K income. They want guidance on when to start Roth conversions, how much to convert each year, and whether to continue 401(k) c...
The industry asked for and received a delay in the rule from the IRS in 2023. Now that it's going into effect, here are the key implications for sponsors and savers....
Caring for a child or parent can mean a drop in income and a lower tax bracket. Why not take advantage by moving money into a Roth account? Here's how it works....
Should the new temporary senior tax deduction change your Roth conversion strategy? Joe and Big Al spitball for Chris in Maple Grove, Minnesota, who wonders whether to keep converting to Roth now that...
Are you taking advantage of all your Roth opportunities? We break down the differences between the Roth IRA, Roth 401(k), or the Mego Backdoor Roth 401(k). by comparing your choices with another favor...
In this episode, Tammy asks about the pros and cons of doing Roth conversions in retirement to manage Required Minimum Distributions (RMDs) down the road. With $2.9 million in combined IRAs and curren...
John asks if taking larger IRA withdrawals beyond his RMD to fund his daughter's Roth IRA makes sense as a strategy to reduce future RMDs, lower estate taxes, and pass on tax-free assets. Although thi...
Joe Anderson, CFP® and Big Al Clopine, CPA tackle one of the trickiest timing questions in retirement planning, today on Your Money, Your Wealth podcast number 553: when should you convert to Roth...
Converting to a backdoor Roth IRA via an IRS "loophole" is an estate planning tool that gives heirs tax-free income in retirement. It can help you, too....
Roth conversions, which transform traditional IRAs into Roth IRAs, are a powerful retirement and tax tool. Here are eight facts to get you started....
John asks if taking larger IRA withdrawals beyond his RMD to fund his daughter’s Roth IRA makes sense as a strategy to reduce future RMDs, lower estate taxes, and pass on tax-free assets. Althou...
I'm probably 3 to 6 years from retirement. Been thinking about doing some Roth conversions at some point and it occurred to me ... I think I have the ability to dictate whether my contributions are pr...
I'm 65, planning on retiring in January, widowed, no kids. My house is paid off, everything else is paid off, about 400K in a 457. My car is 13 years old and I know I will need another eventually. I w...
For a number of reasons, my Partner and I do not qualify for a Health Savings Account (HSA). So, I decided to tun one of our Roth IRA Account’s into an HSA. Inside the Roth IRA/ HAS I only inves...
Joe and Big Al spitball on how to avoid screwing up the timing of your Roth conversions, today on Your Money, Your Wealth® podcast number 550. Barrie from New York is 62 and single, and she’...
More employers are offering Roth 401(k)s inside their plans, making these accounts more accessible than ever. But just because your employer gives you the option doesn’t mean it’s automati...
Is a Roth IRA really better than a traditional IRA? The truth is... it depends on your tax situation. In this video, you’ll learn why your current tax bracket versus your retirement tax bracket ...