Want to Leave Assets to Your Heirs? Consider Using a Taxable Account to Pay for a Roth IRA Conversion A Roth conversion is one of the many tools in the financial toolbox to reduce taxes in retirement ...
Tag: Roth
Should I Buy REITs in My Roth IRA?
Should You Buy REITs in Your Roth IRA? Real estate investing is a field that appeals to a lot of investors with diverse portfolios. Real estate investment trusts (REITs) are a great way to invest in r...
How to Use Your Roth IRA As an Emergency Fund
Contributing to a tax-advantaged retirement account comes with rules that make it difficult to get your hands on your cash should you suddenly need it. Understandably, these controls are one reason pe...
Roth 401(k) vs. Roth IRA: What’s the Difference?
Roth 401(k) vs. Roth IRA: An Overview There is no one-size-fits-all answer as to which is better, a Roth 401(k) or a Roth individual retirement account (IRA). It all depends on your unique financial p...
Inheriting a Spouse’s Roth IRA: Which Option to Choose
If you inherit a Roth IRA from your spouse, you will have a number of options available to you for handling the account that other kinds of beneficiaries don’t. Unlike traditional individual retiremen...
How to decide between pre-tax and Roth 401(k) contributions
Prathanchorruangsak | Istock | Getty Images Whether you’re starting a new job or updating retirement savings goals, you may need to choose between pre-tax or Roth 401(k) contributions — and the ...
A Roth 401(k) Just Got a Lot More Attractive
roth secure 2.0 act A Roth 401(k) is a solid option for retirement savers, especially those who don’t anticipate finding themselves in a lower tax bracket when they retire. A Roth 401(k) works s...
Want to retire a millionaire? Here is why you should open a Roth IRA–even if you have a 401(k) plan
For young people, saving for retirement may be low on your list priorities—somewhere between cleaning the bathroom and going to the DMV. Yet according to financial advisors, investing early in retirem...
What Are My Roth 401(k) Contribution Limits in 2023?
roth 401k limits Saving for retirement is a top financial priority for many. If you’re one of those who has prioritized retirement by opening a Roth 401(k), it’s crucial to use the account optimally t...
My job is being eliminated and I will get a severance package. Is that considered income for IRS limits on Roth IRA contributions?
I know my job is being eliminated at the end of March 2023. I will receive a severance package paid out over a period of almost one year. I understand I will not be able to make 401(k) deductions from...
Here’s how to report Roth IRA conversions on your taxes
If you made a Roth individual retirement account conversion in 2022, you may have a more complicated tax return this season, experts say. The strategy, which transfers pretax or non-deductible IRA fu...
Should you add $30,000 to your retirement with an after-tax auto Roth conversion?
If you are saving up to the employee limit in your workplace retirement accounts and looking to add more, you’ll be glad to hear that employers are making it easier than ever to make extra after-tax c...
Roth IRA Required Minimum Distributions (RMDs)
At some point, all individual retirement accounts (IRAs) must have their balances distributed to the account owner or the owner’s beneficiaries. This includes both Roth and traditional, A key differen...
Roth IRA vs. 401(k): What’s the Difference?
Roth IRA vs. 401(k): An Overview Both Roth IRAs and 401(k)s are popular tax-advantaged retirement savings accounts that allow your savings to grow tax free. However, they differ where tax treatment, i...
We Are 70 Years Old, Have $99K in Retirement Income, a $1.4M IRA and Other Investments. Is It Too Late to Convert to a Roth?
Steven Jarvis, CPA My wife and I are 70 years old. We’ve paid off everything, including the house. Between my pension of $29,000 and Social Security, we’re getting a gross of $99,000 a yea...
Do I Have to Pay Capital Gains Taxes on Roth IRAs?
roth ira taxed on gains When you’re saving for retirement, there are a variety of accounts you could use. The Roth IRA, or individual retirement account, is one of those options. Roth IRAs offer more ...
New Law Allows Tax-Free 529 Rollovers to Roth IRAs
secure act 529 Using a 529 plan to save for a child’s education comes with a lot of advantages. All earnings generated by the after-tax investments are tax-free for qualified educational expense...
Opinion: Roth IRA conversions: Take advantage of this limited-time offer to save on taxes
No one likes taxes, but everyone loves a sale. So the idea of a major blowout on Roth conversions in 2023 — a limited time offer, no less — might make it enticing to pay taxes now to avoid them in the...
How Many Roth Conversions Per Year Does the IRS Allow?
SmartAsset: How Many Roth Conversions Can You Make Per Year? A Roth Individual Retirement Account (IRA) can offer tax benefits in the form of tax-free withdrawals in retirement. If you have a traditio...
Fund a Roth 401(k) if You’re in a Low Tax Bracket. Here’s Why.
If you’re not earning big bucks this year, consider saving money in a Roth 401(k) instead of a traditional 401(k). Roth contributions make sense when your current tax rate is less than your rate in re...
Doing a Roth Rollover? Beware the 5-Year Rule
The Roth IRA has been called “the Swiss Army knife” of personal finance because of its flexibility and the tax-free status of its earnings. That’s the reason so many retiring workers...
Features and Benefits of Sep IRAs and Roth IRAs
There are a variety of individual retirement accounts (IRAs) on the investment landscape these days. Here’s a breakdown of two of the less-traditional types, the Simplified Employee Pension (SEP...
Tax-free rollovers from 529 plans to Roth IRAs may be allowed in 2024
Maskot | Maskot | Getty Images Americans who save for college in 529 plans may soon have a way to rescue unused funds while keeping their tax benefits intact. A $1.7 trillion government funding bill p...
He Attacks Fauci, Roth In Latest Shift To The Right
Topline Billionaire Elon Musk veered toward extremism in a series of tweets this weekend that suggested White House Medical Advisor Dr. Anthony Fauci should be prosecuted and that former Twitter safet...
What Is a Spousal Roth IRA and How Does It Work?
What Is a Spousal Roth IRA? Typically, individuals need to earn income to contribute to a traditional individual retirement account (IRA) or a Roth IRA. However, if you’re married, you can use a spous...
Strategies for Your Roth 401(k)
More and more companies today are offering a Roth 401(k) option as part of their retirement plans. If your employer is among them, and you’ve decided to go the Roth route, here are six ways to maximiz...
I have $600K invested, but my financial adviser has only made one trade this year, and left $7,500 in cash in my Roth IRA. Is it time to get rid of him?
Question: My financial advisor has made one trade this entire year and has left $7,500 in cash in my Roth IRA since January. I had $600,000 in assets at the start of the year. Some minimal reallocatio...
Tax deadlines for retirees: do this before the year ends
It’s the most wonderful time of the year for holiday cheer – and last-minute tax tips. Retirement Tip of the Week: As we approach the new year, look for tax-advantageous strategies to cut your tax bi...
Can You Open a Roth IRA for Someone Else?
If you have a Roth individual retirement account (IRA), you probably already know that it’s a great way to save for your later years. But if you want to help a loved one kick-start their retirement fu...
Will you regret that Roth conversion when you get a huge tax bill?
If you took advantage of the down market in 2022 to convert some of your IRA to a Roth, you’re about to get a reality check of how much that will cost you when you file your tax return. Tax-saving str...