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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I’m 65 and plan on retiring from full time employment in 26 months. I have a military pension, 900k in retirement savings (mostly in non-Roth, unfortunately), planning on drawing SS when I retir...
Have you ever been swept up in the wave of unanimous praise for something, only to later discover that nearly ... Read more...
If you have cash on hand at retirement, a multi-year Roth conversion strategy is worth considering depending on your asset mix and other factors....
Steve & Sharon in Minnesota are high earners - can they get more money into their Roth IRA without paying more tax? Should Fred in western New York do Roth conversions before required minimum dist...
“You do not rise to the level of your goals; you fall to the level of your systems.” James Clear I’ve been focusing on building up my systems lately and today I’ll provide you ...
As of areport in 2021, nearly 6 in 10 U.S. hospitals are nonprofit. If you’re one of the many workers ... Read more...
Take these 5 simple steps to become a Roth IRA millionaire. Given enough time anyone can become a ROTH IRA Millionaire....
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...
The following post applies to U.S. pre-medicare taxpayers who need to buy health insurance. Can anyone recommend some calculators, books, or websites to optimize modified adjusted gross income (MAGI) ...
Today, we talk about if it is reasonable to use 457(b) money to help fund your child's college education, how to do a 401(k) rollover and then how to rebalance it, if it makes sense to do Roth contrib...
Photo credit: jb In general, when you withdraw funds from an IRA prior to age 59½, your withdrawal is subject to both income tax and the 10% early withdrawal penalty. The 10% penalty is waived ...
If you're in a high tax bracket now and expect to remain in a high tax bracket after retirement, should you prioritize pre-tax retirement accounts or Roth retirement accounts for individuals? James an...
If you're in a high tax bracket now and expect to remain in a high tax bracket after retirement, should you prioritize pre-tax retirement accounts or Roth retirement accounts for individuals? James an...
Do you have a traditional IRA or 401K? Have you considered converting your retirement accounts into a Roth, but aren’t clear about the advantages? Outlined below are the most important benefits ...
Physicians often have high incomes, which can make them ineligible to contribute to Roth IRAs directly. Luckily, there is another ... Read more...
Do you want to avoid future regrets? I’m no prophet, but I suspect I know a regret that many Baby Boomers will have in the coming decades. That regret? Their […] The post The Golden Age of...
Hello-I’m over 50 so I am allowed to add an additional $7500 a year to the $22500 a year maximum 401k contribution. I am deducting the max 30k a year from my paycheck. Can I also open a Roth IRA...
The Case for a Roth for Individuals in High Tax-Brackets If you read the title of this post and are confused, I don’t blame you. When investors are taught about using a Roth vs Traditional IRA, ...
Retired unexpectedly early due to COVID in 2021. Have 3 IRA accounts: (1) Roth IRA; (2) Regular IRA; (3) SEP-IRA. Unfortunately, I have very hazy cost-basis info. First, Roth IRA gains are considered ...
Hello everyone. My father is set to retire at age 75. The issue is he has a TIAA retirement account which is like a 401k but not quit. It's a retirement account from a university. It seems to be somet...
Wondering if anyone has a pension & a Roth IRA account. Is it worth it? Is it too much? My company offers a pension that they pay in to, no cost to me. Our package is currently $70/month/year of s...
I'm in CA here if that makes a difference. submitted by /u/Sorakairi89[visit reddit] [comments]...
submitted by /u/MyNameNickk[visit reddit] [comments]...
I’m just coming up on year one at my newish job. Decent pay (70k but a raise is in the works in the next two months that is negotiable). I’m currently 30M. Currently have about 15k in Roth...
Im hoping to get some clarity on deciding. The usual advice i see is if you think youll be in higher tax bracket in retirement then go roth, if same tax bracket it doesn't matter and if lower tax brac...
I'm 33 years old and just recently started saving for retirement. Maxed out my Roth IRA last year( put it all into VOO on vanguard) and will max it out again this year, but I have no 401k at my job an...
Can someone tell me what the limit is for being able to contribute to a Roth IRA? I’m not sure if I make too much or what the limits and rules are. Thanks for your help! submitted by /u/RedStar-...
In 2023, I made my eleventh pair of “backdoor Roth” IRA contributions. It’s a great way for high-income professionals to ... Read more...
I funded my Roth IRA for 2022 back in January 2022. Can I take that money out? And then add it to my traditional IRA? How does Vanguard know that I'm taking the money out for 2022 so that I can put th...
We always know when it is the beginning of the year, because we get so many questions about retirement accounts and everything related to them. This episode answers more of your questions about employ...
The backdoor Roth is touted as an important, no-brainer move for a high-income investor to make. This post explores the marginal benefit of doing so....
A step by step guide that shows you how to successfully complete a Backdoor Roth IRA contribution via Vanguard in 2023 (for a mutual fund or brokerage IRA)....
Should I be contributing to my 401k or Roth 401k? My employer offers both and I currently contribute 4% to the Roth 401k and 3% to my 401k. Should I go full Roth? Currently make $135k/yr and anticipat...
Thanks to the SECURE 2.0 Act, you’ll soon be able to roll over funds from your 529 into a Roth IRA, as long as certain conditions are met. Here’s what you need to know about the new change...
This year was the first year where we exceeded the income ceiling for being able to contribute to a Roth IRA. Of course, I didn't know that that would be the case until well after I'd already made my ...
[Editor's Note: Today is the day that could change the lives of every medical and dental student reading this. Beginning at 6pm MT, WCI founder Dr. Jim Dahle and StudentLoanAdvice.com co-founder Andre...
I want to clarify that the Robinhood Roth IRA is the better option when compared to the Acorns Roth IRA. From what I understand, Robinhood offers 1% matching and no monthly fee. Acorns does not match,...
If this does not belong here.. Dump it. Not meant to be politically based. What are the chances that the Fed’s start taxing Roth accounts like they do Social Security Payments? How would / could...
The choice between pre-tax and Roth 401(k) contributions may be trickier than you expect, financial experts say. Here's what to know....
Learned that deadline to convert from Traditional to Roth for 2022 tax year was Dec 31, 2022. If one was to contribute now for 2022 as a Traditional IRA, can that all be converted into a Roth IRA when...
Hello!! Sorry, I’m new to this but I currently have a simple IRA from my employer, and a ROTH IRA that I max out every year. I understand that traditional and Roth IRA contributions are not to e...
I see a number of people working very hard and saving in a 401(k) or IRA (or Roth IRA). Are you aware of the 4% rule? Have you spoken to your advisor about it? Google ‘The Trinity Study’ a...
I’m a 51 yo . I have 401K with $228,000. I earn $110,000-120,000 a year. Save 13% plus employer matches 100% up to 6%. I also max out my Roth. For January total invested between 401k, employer m...
I will be 70 later this year and working part time. I opened a Roth account late last year because I had already maxed out my 403B. I thought it would help taxwise, I was wrong. I found out in January...
You can contribute $6000 per year to your Roth IRA, but when does that “year” reset? Is it calendar year, meaning it resets in January? submitted by /u/AtuinTurtle[visit reddit] [comments]...
I know taken into account how much is invested and the glide path tends to be more conservative shifting to bonds down towards retirement. Anything else to be aware of? submitted by /u/Ok_Assignment41...
The oldest millennials are now in their 40s, and many are way behind in retirement savings. Fortunately, there's time to turn things around....
There are many articles claiming to have the Best Roth Conversion Tax Strategy. In the end it all comes down to individual situations and where they are...
A 529 plan is one of the best generational wealth transfer tools. Instead of just giving our kids or grandchildren money, it’s way better to give them the gift of education. Thanks to the SECURE...