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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Answering reader questions about the Mega Backdoor Roth, the regular Backdoor Roth IRA, and IRA rollovers. We also talk about high-yield dividend funds and answer a question about asset allocation and...
I am 58, retiring at 60. Have been deep down the rabbit hole on Roth conversions as I am 75% (1.4M) deferred, plus another 450K inherited IRA....got on the Roth accounts late, and was high income. I u...
A fundamental strategy for any U.S.-based DIY retirement planner is to accumulate as much retirement money as possible in a Roth IRA. Roth IRA contributions and conversions grow tax-free, and withdraw...
This financial planner unpacks why Roth conversions can save you big-time on taxes if you're a retiree with a pension....
The potential for tax-free growth makes Roth IRAs an attractive option for younger savers who have decades to maximize investments....
All of the traditional logic and advice points to Roth conversions being critical to optimize taxes and control RMD's later in retirement. But with our desired retirement lifestyle of spending for exp...
John in Boston is in the 32% tax bracket. Should he do Roth conversions? Flight Deck Dad and Irish Girl in Pensacola have a lot of tax-free pension income. Should they do Roth conversions? Bert and Er...
Answering reader questions with WCI friend and Roth IRA expert, Chris Davin, where we talk about when to choose Roth and why, Roth and tax-planning considerations, and using Roth as an independent con...
What are the pros and cons if Chip uses the money in his taxable brokerage account for early retirement income? Jack and Sally ask Joe and Big Al to spitball on whether they can retire around age 55 o...
Understanding the allocations in your Roth IRA can help manage volatility and set realistic expectations for long-term returns....
Just about every week here on YMYW, Joe and Big Al talk about converting your retirement savings to Roth accounts. But why? What’s the big deal? Today the “IRA guru” Ed Slott, CPA re...
Thinking of converting a traditional IRA to a Roth IRA? The Kiplinger Tax Letter Editor highlights nine factors you should consider before making a move....
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...
Here's everything you need to know about Mega Backdoor Roth conversions and whether they're the right move for you in the long run. The post Mega Backdoor Roth IRA Conversion in Your 401(k) or 403(b) ...
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....
Looking for opinions on what to do with the money. I am the higher earner of the 2 of us, aged 57, spouse is retiring as a teacher at 56. Getting about 250K lump sum in exchange for a lower COLA incre...
Answering reader questions about the difference between Roth and traditional IRAs, the process of opening Roth IRAs for your kids, and what to do if you over-contribute to your 401(k). The post Roth I...
"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...
I understand the basics (5 year rule, paying the taxes, etc.), but does it mean I'm basically "buying" with money from my traditional IRA? Let's say I want to convert $50K. My $50K is now worth $40K (...
While some 'golden rules' stay in style forever, the financial landscape is constantly evolving. Here are five common myths to revisit (with more on the way)....
Facing a future tax hit on your retirement savings? A Roth conversion may be a way to lower the taxes you owe....
Strategic Roth IRA conversions can set you up for tax-free income in retirement and a tax-free inheritance for the people you love....
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....
Planning for retirement is crucial, especially for those self-employed or anyone without an employer-sponsored retirement plan. A Roth solo 401(k) might be the solution....
If available, you may be able to access additional Roth savings annually. However, there are important considerations for employers and employees to keep in mind....
An IRA conversion can give you a leg-up in retirement with tax-free income. But proceed with caution....
Converting a traditional IRA account to a Roth IRA is a fabulous part of a proactive tax-planning strategy to reduce the tax drag on your retirement income....
Get 6 surprising takeaways from Boldin's recent survey of users about Roth conversions. The post Strong Engagement & High Confidence: What Boldin’s Survey of Users Reveals About Strategizing...
To read this story on KSL.com, click here. Millions of Americans are converting their traditional tax-deferred IRAs and 401Ks into tax-free Roth accounts. CNBC reported last year that Roth conversions...
You may not be bound for Mordor, but Roth IRA pitfalls could upend your retirement if you're unaware of them....
If your child has earned income, they can contribute to a Roth IRA. Opening a Roth IRA for kids can significantly change their financial situation in retirement....
Roth IRAs are a great way to build tax-free retirement income—but the withdrawal rules can be tricky. In this video, I’ll break down the five-year rules, how contributions, conversions, an...
The most complicated routine question for investors is the annual dilemma about Roth contributions and conversions. Here's what to know. The post Should You Do a Roth Contribution or Conversion? appea...
You should check out the mega backdoor Roth tax-planning strategy. The huge life time tax savings can improve the health of your retirement income....
Retirement savings and taxes are a minefield — and the higher your income, the more complicated the options. Use these tips to find your way forward....
Answering reader questions about Roth IRAs and the pro-rata rule; self-directing your solo 401(k), 457(f)s, and 457(b)s; and when to do Roth conversions. The post Roth IRAs, 457(f)s, and Other Retirem...
Most people never ask or research their retirement investing to see if it is supporting predatory lenders. Discover how index funds can often obscure this....
Is it better to save for retirement in traditional 401(k)s and IRAs, or in Roth accounts? That’s today on Your Money, Your Wealth® podcast 518 with Joe Anderson, CFP® and Big Al Clopine,...
Follow this detailed walkthrough of how to report a Roth conversion in FreeTaxUSA after recharacterizing a Roth IRA contribution in the same year. Learn the Nuts and Bolts I put everything I use to ma...
Hello, My goal is to in April next year to semi-retire, mainly stop working for my current company. I want to take the 401K and my Rollover IRA and pull the money out and pay taxes upfront, and then m...
In this episode, Tammy asks about the pros and cons of doing Roth conversions in retirement to manage Required Minimum Distributions (RMDs) down the road. With $2.9 million in combined IRAs and curren...
Should Nancy in Washington take out a 401(k) loan and invest it in her brokerage account to catch up on saving for her retirement? When Joe and Big Al talk about having a balanced portfolio of various...
Can you imagine eliminating ALL taxes on your retirement income? Well, you are allowed to and it's called a Roth Conversion. What's the catch? You have to pay the taxes TODAY once and done and then yo...
The Roth or traditional 401(k) decision can be complicated for high-income professionals. Consider these factors to best protect your income. The post Should You Make Roth or Traditional 401(k) Contri...
In this episode, we're talking about the importance of a strategic withdrawal plan in retirement to keep taxes in check and set you up for long-term financial stability. Ari and I break down why a sim...
Distributions from Roth IRAs must follow a specific set of ordering rules so that the taxation (or non-taxation) is correct. The post Ordering Rules for Roth IRA Distributions appeared first on Gettin...
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....
Mike and his wife in Tampa are 39 and 36, they’ve got nearly a million bucks saved. Are they on track for retirement? Kate in California is 55 and hopes to retire in the next couple of years. Ho...
I'm 67, retired, good income from various sources. I have a pretty significant IRA I haven't touched. Really don't anticipate tapping into it for several more years, possibly only when required minimu...