Want to make your kids millionaires? A Roth IRA might be all that they need. At least, that's the suggestion of famous financial personality Suze Orman, who dedicated a blog post to this specific.
Many people find themselves in a situation where they want to convert their 401(k) to a Roth IRA. This can be a smart move if you’re looking to withdraw your retirement funds tax-free when you retire. However, converting your 401(k) to a Roth IRA can come with a hefty tax bill. Although you can't eliminate taxes on the conversion, there are ways to minimize the tax hit when converting your 401(k) to a Roth IRA. Don't Miss: Can living off interest from a $1 million investment support my retiremen
Should you switch from pre-tax IRA contributions to Roth contributions? Imagine that you’re steadily contributing to a traditional IRA. This provides you with an annual tax deduction. However, contributing to a tax-deferred account comes at the cost of having to pay taxes on all of the money you withdraw in retirement. Switching to a Roth […] The post I'm Almost 60 and Have $1 Million in My IRA. Should I Switch to Roth Contributions? appeared first on SmartReads by SmartAsset.
I’d like to ask about the backdoor Roth IRA. Say you are over the income limit for Roth contributions, so you make a traditional contribution with no tax deduction and then do a backdoor Roth. Is that conversion taxable? If so, you would be paying tax on that money twice since you paid tax on […] The post Ask an Advisor: Is a Backdoor Roth Conversion Taxable Even If I Didn’t Take a Deduction on My IRA Contributions? appeared first on SmartReads by SmartAsset.
To save for retirement, you don’t need an employer-sponsored plan such as a 401(k). You can also save for retirement on your own through an individual retirement account (IRA)