Roth
Showing 50 results of 245
Pennies and the Backdoor Roth IRA
Dec 10 2024
What do you do with the pennies your money earns between the contribution and conversion to a Backdoor Roth IRA? Not much. The post Pennies and the Backdoor Roth IRA appeared first on The White Coat I...
whitecoatinvestor.com
9 Answers to Boost Tax-Free Roth Retirement Income - 507
Dec 10 2024
Joe Anderson, CFP® and Big Al Clopine, CPA spitball on paying the tax on your Roth conversions on Your Money, Your Wealth® podcast number 507. If you take the money out of your retirement acco...
purefinancial.com
Case Study: Optimizing Current ACA Subsidies vs. Roth Conversions for Long-Term Tax Planning
Dec 10 2024
Today I have a guest post from personal finance enthusiast Dan Griffin. While Dan is not a practicing financial planner, he passed the CFP exam in 2010 and holds an Executive Certificate in Personal F...
caniretireyet.com
Don't do Roth Conversions? This analyst says no.
Dec 08 2024
Article says payoff takes too long. I'm not good with all the math, but the explanation given seems to make sense. Especially considering we never know what the tax rates will be on the future. I'm 60...
marketwatch.com
Roth or Traditional: How to Choose a Retirement Tax Strategy
Dec 05 2024
When picking which type of 401(k) or IRA is right for you, consider whether you want to save a little on your taxes now — or save a lot more on them later....
kiplinger.com
How to Plan for 35 Years of Retirement Spending With Smart Roth Conversions - 506
Dec 03 2024
What’s a safe withdrawal rate for Wine Guy and Wine Gal in Sonoma California to have 35 years of “guaranteed” retirement spending? How aggressively should they convert their retireme...
purefinancial.com
Will Roth Conversions Put You On Track to Retire Early? - 472
Nov 30 2024
Rob and his wife in North Carolina are 51 and 44 and would like to retire in the next 3-5 years. Are they on track, and what should they consider as far as Roth conversions are concerned once the tax ...
purefinancial.com
STOP! Why You Shouldn't Do a Roth Conversion
Nov 30 2024
Roth conversions are almost a buzzword today, with many people jumping into them like they’re a guaranteed fix for tax worries—much like rushing into surgery hoping it will solve all your ...
buzzsprout.com
Mega Backdoor Roth IRA: Supercharging Your Retirement Savings
Nov 26 2024
Ever since I started saving for retirement in 1999, I’ve been a proponent of tax-deferred retirement vehicles like the 401(k) and skeptical of tax-now vehicles like the Roth IRA. Working in bank...
financialsamurai.com
Trump Tax Cuts And 11 Other Reasons To Skip A Roth Conversion
Nov 23 2024
Prepaying income tax on a retirement account might be a good idea. Or it could be a really bad idea. Read this before pulling the trigger....
forbes.com
Rules for Inheritances and Making Roth Contributions for Others - 504
Nov 20 2024
Can Ted and Georgette convert $1.6M in an inherited trust to Roth without distributing it? Should the trust own their home so they can use the home equity? Melissa was added as joint owner on her pare...
purefinancial.com
Is Now a Good Time to Open a Roth IRA?
Nov 13 2024
Think you might want to open a Roth IRA? Roth IRAs offer tax-free growth of your investments and no RMDs, but income limits are low and you have to wait to withdraw earnings....
kiplinger.com
When to Pay Off Your Home, Retire, and Do Roth Conversions - 503
Nov 12 2024
When should Jack and Swan in Florida pay off their home, retire, and convert their savings to Roth for lifetime tax-free investment growth? Jennifer in Colorado wonders whether she should take taxes i...
purefinancial.com
7 Things You Need to Know About Roth IRAs to Maximize Tax-Free Income
Nov 12 2024
Roth IRAs offer great tax-free income benefits, but to make the most of them in retirement, here are seven things you need to know: Contribution Limits: In 2024, you can contribute up to $7,000 annual...
buzzsprout.com
Unpaid Caregivers Soon May Get Help to Save for Retirement
Nov 11 2024
Two proposed bills aim to open new doors to caregivers for contributing to Roth IRAs and making catch-up retirement contributions....
kiplinger.com
Is It Too Late to Do a Roth Conversion if You're Retired?
Nov 03 2024
The short answer is: Not at all. Roth conversions can be great tax-saving strategies … for the right people. Are you a good candidate?...
kiplinger.com
Here's Why You Shouldn't Put All Your Money Into Roth IRAs
Nov 01 2024
Converting a tax-deferred account to a Roth can be a good strategy for lowering future taxes, but moving all of your money at once is typically not recommended....
kiplinger.com
October 2024 Best of the Web
Oct 28 2024
I have an outstanding collection of resources on a variety of topics this month. We’ll explore financial planning concepts including Roth IRA conversions, building bond ladders, and performing 5...
caniretireyet.com
Is a Roth Conversion Right for You Before the Election?
Oct 24 2024
If you’re concerned about possible tax policy changes after the next president takes office, you might want to consider a Roth conversion now....
kiplinger.com
The post-'stretch' home stretch for Roth IRA conversions
Oct 24 2024
The first Secure Act was a "game-changer for IRAs and Roth IRAs," according to a retirement expert. Here's the compelling case for paying taxes sooner....
financial-planning.com
Converting an Inherited 401(k) to Roth
Oct 21 2024
Things to consider with an inherited 401(k) plan - such as, you can convert the plan to a Roth IRA, enjoying tax-free withdrawals afterward. The post Converting an Inherited 401(k) to Roth appeared fi...
financialducksinarow.com
Is Your Portfolio Big Enough to Benefit From Roth Conversions?
Oct 08 2024
What are the benefits of Roth conversions in retirement planning? James addresses questions about when Roth conversions become worthwhile. This episode explores key factors: Changes in tax bracket Spo...
buzzsprout.com
Spend RMDs, or Reduce Reduce Distributions and Taxes With Roth Conversions? - 498
Oct 08 2024
Hawkeye and Elle are age 61 and in the 32% tax bracket. How should they get money into their Roth accounts for tax-free retirement income? Clark and Ellen are 69 and 68, expenses will pretty much be c...
purefinancial.com
401(k) Ins & Outs, Roth Conversion Benefits, and Divorce Finances - 469
Oct 08 2024
Erik in MN is divorced, and the OC Birdman of South OC is getting divorced. Should Erik contribute to pre-tax retirement accounts or Roth? How should the Birdman and his soon-be-ex time the sale of th...
purefinancial.com
Five Windows of Opportunity for Roth Conversions
Oct 05 2024
When you convert a traditional IRA to a Roth IRA matters if you want to limit how much you pay in taxes....
kiplinger.com
Tax-Savvy In-Plan Roth Conversions and Inherited IRA Withdrawals - 497
Oct 01 2024
Should David in Ohio use 457 funds to do an in-plan Roth conversion in his 403(b) plan, and should he hire a financial advisor? Chris in DC needs a retirement and Roth conversion spitball analysis, an...
purefinancial.com
Am I Too Old for Roth Conversions? 3 Things to Consider
Oct 01 2024
Gary is a 73-year-old with $8 million in savings. Despite having substantial assets, he’s concerned about missed opportunities for Roth conversions as he faces significant required minimum distr...
buzzsprout.com
The Roth Conversion Sweet Spot: Maximize Retirement Savings (And Avoid Costly Mistakes)
Oct 01 2024
Listener Nael opens up a discussion about Roth conversions. There are benefits to doing Roth conversions, but can you do too many? Are there any downsides to Roth conversions? Reaping the tax benefits...
buzzsprout.com
Early Retirement Health Insurance Strategies | Roth Conversions vs. ACA Subsidies
Oct 01 2024
Healthcare subsidies are like a tax break and should always be optimized, right? That seems like an easy question that should have a straightforward answer. But the correct answer is, “It depend...
buzzsprout.com
Pay ZERO Capital Gains Tax vs Roth Conversions in Retirement: How to Determine Which is Best
Oct 01 2024
Listener Drew asks about a tax strategy for juggling capital gains and Roth conversions. While it can be a complicated question – especially when large accounts are involved – James provid...
buzzsprout.com
Roth Conversion Strategies to Protect Your Spouse's Future Tax Burden
Oct 01 2024
A listener says, “Eventually, one spouse will pass before the other, which will often catapult the survivor into a significantly higher tax bracket. Shouldn’t a Roth strategy take this int...
buzzsprout.com
What's the Right Roth Conversion Amount to Avoid a Tax Nightmare in the Future?
Oct 01 2024
Sammy, a 51-year-old retiree, is seeking advice on how much she should convert from her traditional IRA to a Roth IRA each year to avoid jumping tax brackets and minimize the taxation of her social se...
buzzsprout.com
Roth IRA Tax-Free Withdrawals: 5-Year Rule Explained
Oct 01 2024
James explores the nuanced aspects of Roth IRAs, shedding light on intricacies that can confound even experienced investors. Through a listener question from Manfred, a retiree contemplating a $50,000...
buzzsprout.com
Four Changes Coming to IRAs in 2025
Sep 29 2024
The 2025 rule changes for Roth and traditional IRAs could mean more money for your retirement. But you have to pay attention to reap the rewards....
kiplinger.com
Age Plus 20 Rule for Retirement Contributions - 496
Sep 24 2024
How much should you save in pre-tax accounts vs. post-tax accounts? Joe Anderson, CFP® and Big Al Clopine, CPA spitball on the "age plus 20" rule for retirement savings, Roth 401(k) contributions ...
purefinancial.com
Run The Numbers, Check Your Facts, Then Check Your Gut
Sep 23 2024
Learn to make smarter financial decisions with math-driven strategies. James Lange shows how Roth IRA conversions and tax planning can maximize wealth and reduce taxes....
forbes.com
3 Strategies to Pay Roth Conversion Taxes - 495
Sep 17 2024
Today on Your Money, Your Wealth® podcast 495, Joe Anderson, CFP® and Big Al Clopine CPA spitball on three different listeners’ strategies for paying the tax on a Roth conversion now, to...
purefinancial.com
Why a Roth IRA Isn’t Always the Best Choice: A Campfire Conversation
Sep 16 2024
I was sitting around the campfire last weekend, enjoying the warmth of the flames and the comforting crackle of burning wood. My cousin, a financial advisor brimming with enthusiasm, leaned over and b...
dadisfire.com
Roth 401K or Not? When Should I Switch?
Sep 04 2024
So many retirement questions have no right answers. They’re simply judgment calls. In this episode, we’ll explore whether it makes sense to switch to a Roth 401K. Don’t listen to fin...
share.transistor.fm
Exchange Funds Explained, Roth Conversion Timing - 492
Aug 27 2024
What is an exchange fund and is it a good thing if you have a lot of capital gains like Bryan in New York? That's today on Your Money, Your Wealth® podcast 492 with Joe Anderson, CFP® and Big ...
purefinancial.com
Why Roth IRAs May Be a Good Savings Option at Any Age
Aug 26 2024
These retirement savings accounts, which are often pitched to young investors, can be a good option for older and retired workers....
nytimes.com
3 Strategies For Using Roth IRAs And Roth 401ks In Retirement
Aug 15 2024
Discover three effective strategies for using Roth IRAs and Roth 401(k)s in retirement to maximize tax-free income, manage withdrawals, and secure your financial future....
forbes.com
Three Reasons to Consider Roth Conversions in Your Peak Earnings Years
Aug 10 2024
It might seem counterintuitive, but there are scenarios in which it would make sense to lock in lower marginal tax rates....
kiplinger.com
How a Roth Conversion Can Spare You From Medicare’s IRMAA and Taxes
Aug 08 2024
If you've been a good saver and face large required minimum distributions (RMDs), then you need to plan for how to head off or limit higher Medicare premiums....
kiplinger.com
Am I Too Old for Roth Conversions? 3 Things to Consider
Aug 07 2024
Gary is a 73-year-old with $8 million in savings. Despite having substantial assets, he’s concerned about missed opportunities for Roth conversions as he faces significant required minimum distr...
buzzsprout.com
Do Not Convert To A Roth IRA (Until You Read This)
Aug 02 2024
Consider the idea of not converting any, some, or all of your Traditional IRA to a Roth IRA and go against the conventional wisdom....
forbes.com
Market Timing Retirement Withdrawals and Roth Conversions - 488
Aug 02 2024
Is timing the market when you withdraw money from your retirement accounts or do Roth conversions an effective strategy to minimize tax and maximize returns for YMYW listener Robert? That’s toda...
purefinancial.com
Roth 401K or Not? When Should I Switch?
Jul 31 2024
So many retirement questions have no right answers. They’re simply judgment calls. In this episode, we’ll explore whether it makes sense to switch to a Roth 401K. Don’t listen to fin...
rogerwhitney.libsyn.com
How to Avoid These 6 Costly Roth Conversion Mistakes
Jul 30 2024
Roth conversions can be an effective strategy for creating tax-free income in retirement. But Roth conversions can also get complex, and if you’re not careful it’s easy to make mistakes th...
physicianonfire.com
A Roth Conversion Alternative That Addresses Long-Term Care
Jul 19 2024
Here are some strategies for utilizing whole life or indexed universal life policies to convert your traditional IRA to a Roth with LTC protection....
kiplinger.com
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About Roth
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.
One of the main benefits of a Roth account is that it provides tax-free income in retirement. This can be especially valuable for people who expect to be in a higher tax bracket in retirement than they are currently, as they can avoid paying higher taxes on their retirement income.
To be eligible to contribute to a Roth account, you must meet certain income requirements. There are also limits on how much you can contribute to a Roth account each year. It's important to consult with a financial advisor or tax professional to determine if a Roth account is right for you and to understand the specific rules and limitations that apply.