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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While tax cuts sound attractive, it's still wise to plan ahead for retirement by considering strategies like Roth conversions to offset potential tax increases in the future and stealth taxes that cou...
Roth rules, interest rates, Nvidia and paper checks were all featured by Kiplinger this week — but why? How much do you know about the week's financial news?...
While some provisions might help, others could push you into a higher tax bracket and raise your costs. Be strategic about Roth conversions, charitable donations, estate tax plans and health care expe...
Is it possible, common even, to spend a lot early in retirement to celebrate your financial freedom? How do Roth conversions and withdrawals work if you do plan to call it quits around age 57, and spe...
Trump account is a non-deductible Traditional IRA for kids with no earned income. It isn't as good as a custodial Roth IRA, a 529 plan, or a UTMA account. Learn the Nuts and Bolts I put everything I u...
So, this seems pretty straightforward, but want to make sure I'm not missing anything. I have a regular IRA, a Roth IRA, and an HSA. I'm 62 and have a high deductible health plan via the ACA (Obamacar...
Hi all, I am hoping to retire in a few years at 60. I should have a healthy amount in my 401k, a less healthy amount (maybe 1-2 years of living expenses) in a Roth, and a house worth about $1 million ...
You’ve got your tax-free Roth accounts and your tax-deferred retirement accounts. Should you invest the same way in each? Kevin in Denver wants toknow. Jim and Pam in Orange County are eligible ...
In this special episode, we catch up on a backlog of insightful listener questions—covering everything from estate planning and Social Security taxation to Roth conversions and Medicare rules. I...
Nervous about investing in a 529 plan? If college doesn't pan out, the money can now be rolled over into a Roth IRA, which will grow tax-free until retirement....
Current have 300k in a 401, part Roth, part regular, and a small amount in an IRA. I'll be retiring in 18 months at 67. Should I keep the money in the 401 when I retire, move it to the IRA, or do some...
I just retired and had to buy a house late. I am in year 3 of a 30 year mortgage at 6.375%. I have enough in pre-taxed income, 401k, HSA, and Roth to live comfortably but not lavishly. Would I be smar...
Tuesday, April 01 - Monday, April 07, 2025 Most Commented score comments title & link 94 147 comments How financial advisors treat couples 12 41 comments Help with our first ROTH conversion Top Co...
You could do more harm than good if you react emotionally to volatility. Instead, consider tax-loss harvesting, Roth conversions and how to plan for next time....
"Jim" (66) and "Karen" (64) both retired in the last six months. Jim has an IRA with $900,000, and Karen has a Roth IRA with $300,000. They inherited a brokerage account with $600,000 and a cost basis...
One of my goals is to put my kids to work so they can earn money, contribute to a Roth IRA, and learn the value of hard work and the power of investing. By age 18, they'll have roughly 10 years of wor...
Here are IRA contribution limits, income limits and rollover rules for Roth, traditional, SIMPLE and SEP IRAs at a glance....
That 401(k) or traditional IRA you've filled with your hard-earned money could turn into a tax bomb. Before it blows, see if a Roth could help rescue you....
Are You Spending Your Money on What Truly Matters? A few weeks ago, I challenged you to do the most important thing you can with your money this year—not Roth conversions, not optimizing Social ...
In this episode, we tackle Richard’s question about why it might make sense to use IRA (non-Roth) accounts first to pay for long-term care expenses. We’ll explain the reasoning behind this...
Answering questions about the TSP fund now allowing Roth conversions and contributions, how indemnification clauses can be problematic for docs, and the best way to pay off a hefty practice loan. The ...
Roth conversion is often a smart choice. Don’t let the tax bill scare you....
2024 brings the option to roll money from a 529 college savings plan into a Roth IRA. Check out the requirements and when this could make sense for you....
In this episode, we tackle Kay's questions about managing her IRA and Roth accounts in retirement. With significant assets, no LTC insurance, and children in differing financial circumstances, Kay wan...
One of the biggest reasons I was against contributing to a Roth IRA is my belief that most people won’t make more money in retirement than while working. As a result, they’re unlikely to p...
The SECURE 2.0 Act contained changes to traditional and Roth individual retirement accounts and 401(k) plans that are being phased in over several years....
Top retirement articles covered Roth mistakes, wealth, average net worth, decision-making, rules, and more related to achieving a secure future. The post Best Financial and Retirement Articles from 20...
When should Richie and Heather and Rebecca and Sam collect their Social Security benefits? Why is Dan’s benefit so much higher than his wife’s? PWare has a Roth conversion case for claimin...
My wife and I (61 & 58) have several retirement accounts: Trad 401(k), Trad IRAs, Roth IRA, I-Bonds, and taxable brokerage. We will both have pretty good SS income as well. Planning to retire in 2...
We answer a question from a 44-year-old Pittsburgh bus driver earning over six figures annually who maxes out a Roth IRA, contributes 10.5% to a 457 plan, and is covered by a pension. He owns five ren...
There’s a lot of enthusiasm for Roth IRA conversions and Mega Backdoor Roth IRAs—and for good reason. Paying taxes upfront on your retirement accounts can be a savvy move, especially if yo...
"Sam" is 58 and he retired at the end of the first quarter of 2024. His wife, "Alice," is 65 and still working as a paid caretaker for the couple's son with special needs. Sam has $400,000 in a Roth I...
Will building a new home delay Janelle's early retirement? Can Mike and his wife retire early at ages 50 and 55, and how much should they convert to Roth? Maria and her partner keep their finances sep...
Join us as we dive into year-end financial planning strategies to optimize your retirement plan. This episode unpacks the essentials of contributing to various accounts like 401(k)s, IRAs, Roth IRAs, ...
Two proposed bills aim to open new doors to caregivers for contributing to Roth IRAs and making catch-up retirement contributions....
I was forced to take early retirement this April and with the payout my salary for this year will exclude me from doing anything like a Roth conversion. I am going to try and hold out on taking any so...
Should Suzanne in Michigan do Roth conversions in 2025 and 2026 since she’s widowed and won’t be married filing jointly? How should she pay the tax on her conversions? Jennifer in Washingt...
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...
One of the biggest benefits of a market downturn involves shifting market losers into a Roth IRA account to save big-time on taxes in retirement....
Are real estate investment trust (REIT) ETFs a good way for Leon to begin investing in real estate? Can AI Seth stay retired at age 52, and should he do Roth conversions? Jenn in Ohio wants the fellas...
Retirement savers with big bucks in traditional IRAs and pretax 401(k)s could face huge tax bills when RMDs kick in. One potential solution? A Roth 401(k)....
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....
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 ...
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....
Answering reader questions about how to help your kids build wealth by funding Roth IRAs, HSAs, and 529s; using brokerage accounts to get an attractive yield on cash; and making sure you get your full...
I’m planning to retire next spring and have managed my own Roth, IRA, 501k, and HSA my entire career. But I feel the need for guidance on a strategy that is personalized for handling all of my i...
'm 66, wife is 65. I've been "educating" our daughter relative to her 401K, her Roth IRA, cash/savings account, etc. The idea is that If I pass before my wife, it's my daughter to whom I'm trusting to...
How is Kimberly’s strategy for reducing her retirement taxes by doing Roth conversions and qualified charitable distributions? Is Patrick’s tax loss harvesting transaction a wash sale? At ...
In this episode, we tackle a diverse range of listener questions from reverse mortgages, annuities, Roth conversions, healthcare before the Medicare age, and a lot more. Tune in as we discuss: Al's Qu...
I met the blogger Frugal Professor last week when he traveled to my area for a family gathering. I learned from his blog post that he earned over $5,000 tax-free by transferring a Roth IRA to Robinhoo...