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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The previous postSplit-Year Backdoor Roth in H&R Block, 1st Yeardealt with contributing to a Traditional IRA for the previous year and recharacterizing a previous year’s Roth IRA contributio...
The best way to do a backdoor Roth is to do it “clean” by contributing for and converting in the same year — contribute for 2023 in 2023 and convert in 2023, contribute for 2024 in 2...
Roth conversions can be a powerful retirement-planning strategy. Watch this clip from Retirement University’s online course, “Tax-Saving Strategies in Retirement” to learn how Roth c...
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...
Two hypothetical examples of Roth conversions made at different times (all at once vs as you age) show a stark difference in what could be left for your beneficiaries....
The Roth 401(k) is gaining in popularity due to employers offering it inside their plans and also thanks to provisions in the Secure Act 2.0 that only pertain to the Roth option. The question is, is i...
You may have contributed to a Roth IRA and then realized later in the year that you would exceed the income limit. You recharacterized the Roth IRA contribution as a Traditional IRA contribution and c...
Big Tex, Paul in Maryland, and Nick in Alabama all need to know how much money they should convert to Roth to pay as little tax as possible, today on Your Money, Your Wealth® podcast 471 with Joe ...
The previous post Backdoor Roth in TurboTax: Recharacterize and Convert, 1st Year dealt with contributing to a Traditional IRA for the previous year and recharacterizing a previous year’s Roth I...
The best way to do a backdoor Roth is to do it “clean” by contributing *for* and converting in the same year — contribute for 2023 in 2023 and convert in 2023, contribute for 2024 in...
Before “dashboards,” GAO should embrace the Conduit (Roth) IRA—A superior solution for…...
This month’s resources explore the benefits of utilizing tax-deferred accounts as well as the potential upsides and challenges of later converting to Roth. Resources will challenge you to think ...
A recent law allows tax-free rollovers from 529 plans to Roth IRAs, but there are hurdles to be cleared....
ANYONE HAS ONE? ? I DON'T! ? 5 questions to ask if your workplace offers an after-tax retirement savings plan. By Tamara E. Holmes. Published February 20, 2024. https://www.aarp.org/retirement/plannin...
I just contributed $7,500 to traditional non deductible IRA for 2023 year with a plan of converting to Roth when the account is funded in a few days. I have work 401k balances that upon leaving my emp...
Are you a parent looking for the best way to build a savings account for your child? Here’s a common question many seek the answer to....
Should Peter LemonJello, who has high income, and his wife, who is retired with zero income, file their taxes as married filing separately so they can start Roth conversions? What are the tax implicat...
Roth IRAs give you a tax-free source of retirement income....
If you have rollover IRA accounts and want to make a backdoor Roth IRA contribution, this episode is for you. There are several steps involved to handle this strategy in the right way including unders...
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...
[Editor's Note: If you’re looking to take immediate steps to increase your income that will continue you on the path toward financial security, enrollment is now open for Expert Witness Startup ...
It’s a voice message extravaganza as Joe and Big Al talk about tax gain harvesting on Dante in New York’s daughter’s custodial account, and the tax impacts of Leon in Chicago investi...
As part of our efforts to bring you actionable strategies to help you reach your ideal retirement, we’re tackling a complex question today. The backdoor Roth strategy can be a way to increase yo...
High income earners may face limitations when contributing to a Roth IRA due to income restrictions. However, there are several strategies they can employ to maximize the benefits of a Roth IRA or fin...
We’re revisiting your favorite Your Money, Your Wealth topics and Derails of 2023 in this Roth and retirement investing mega-episode. Safe investing when you’re risk averse, mutual funds v...
By Dr. Tyler Scott, WCI Columnist As the daylight fades ever earlier and the hushed softness of newly driven snow quiets the world around me, I, in only the second winter of my newly blossomed financi...
Spitballing on early retirement and Roth conversions to finish 2023. How can Jack and Diane (no, the other, other Jack and Diane, these are the ones in Rochester, MN) bridge the gap to retirement at a...
Today, Dr. Jim Dahle debunks an article recently published titled “Why a Roth Is a Bad Idea ( Yes, You Can Lose Money).” He spends time educating on why a Roth is a fantastic place to put ...
My wife (who does not work, used to but not in the past 10 years) has a traditional IRA in addition to a Roth IRA. We are going to deposit $7500 for 2023 into one of these accounts and wondered which ...
My husband (61) is 100% retired. I'm (62) mostly there but did work part time for half the year so have earned income. Is there any reason we absoluteely should (or should not) contribute to our Roth ...
Joe and Big Al spitball on investing in index funds, bonds, CDs, treasuries, annuities, net unrealized appreciation on company stock, and where to park cash right now. Plus, how do taxes, Roth convers...
One of the advantages of reduced income due to leaving my full-time career is the opportunity to execute a Fidelity Roth conversion. Roth conversions allow investors to transfer money from a 401(k), t...
Im 56 have $490k in a Roth, $60k in Traditional IRA will collect $1299 in pension in 10 years with an estimated $3900 a month in SS in 10 years. $75k in savings. Can I retire in 10, or will I have to ...
Custodial Roth IRAs have become popular for parents looking to help their children build their savings. These accounts offer a ... Read more...
By Dr. Rikki Racela, WCI Columnist The founder of this website is often baffled by the amount of questions/grievances/headaches that WCI followers face when attempting the Backdoor Roth IRA. It seems ...
I'm (f57) am considering opening Roth accounts for me and my husband (60). I'm maxed out on my 401(k) and plan on being in a lower tax bracket when we retire. We're not eligible for a traditional IRA,...
If you have a big wad in a pretax IRA, sit down with your accountant now....
Hello. I would like to do a Roth conversion this year (first time). Is this as simple as withdrawing up to the amount that puts me at the top of the tax bracket I am in without the conversion? Thanks ...
According to Becker’s Hospital Review, 74 percent of doctors are either corporate or hospital employees. As of a 2021 study, ... Read more...
Had recently transferred my Roth IRA to a new brokerage firm. The original Roth was opened 10 years ago with yearly contributions. Does the 5 year clock for withdrawals restart in the new Roth IRA acc...
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...