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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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...
These steps, including converting to Roth IRAs, using a Roth 401(k) and leveraging life insurance and annuities, can help reduce your taxes in retirement....
How important is it to have many different investment companies to hold your Ira, Roth IRA, hsa or brokerage or crypto accounts? We are thinking of leaving vanguard because of the recent changes due t...
Today, we answer your questions about rolling over an HSA, when to withdraw from your HSA, whether a UTMA or custodial Roth IRA is better for your kids, if it is a good idea to open a solo 401(k) for ...
last year I finally decided to retire in early 2025 I was thinking getting a couple months in so I could max my ROTH IRA. Then got to thinking "ill get my last check for my vacation time in January so...
Here's how to roll over a 401(k) to a traditional IRA, Roth IRA or even to a Roth 401(k)....
Some retirees make an expensive mistake by trying to roll over their required minimum distributions to Roth IRAs....
No matter where you are in your financial journey, many options are available, including eliminating RMDs altogether through Roth conversions....
After I left the Navy I started working and putting money in a pre-tax 401k. About a year ago I decided to shift my contributions to a Roth 401k. But still about 90% of my 401k is pre tax. I wish I ha...
So you won the lottery - congratulations! After you celebrate, should you rip off the band-aid and convert the entire lump sum payment to a Roth IRA? That’s today on Your Money, Your Wealth®...
Doug and I recently took a trip to see MMM’s Arizona Experiment in person. At Culdesac, we were joined by friends including Chad Carson, Paula Pant, Brad Barrett, David Baughier, and JD Roth. We...
Optimum location for assets: IRA, Roth IRA, taxable account...
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 ...
But there are caveats to moving the money into Roth I.R.A.s, and the government still has to issue guidelines about the option....
Are there general guidelines on what percentages of your investment portfolio should be in tax-free accounts like your Roth, tax-deferred accounts like your 401(k), and taxable accounts like your brok...
Nearing earlish retirement and will need to use ACA for a few years. We'd like to balance out using our cash reserves, taxable brokerage, and tax deferred assets hopefully leaving the Roth assets to g...