If you have money in your company’s 401k or in a traditional IRA, you may be considering converting these funds into a Roth IRA now while tax rates are historically low. The idea is that if you pay income tax on your retirement money now – especially when many account balances are significantly down – future gains in the Roth are tax free. But you need to understand the 5-year Rule.
When it comes to spending down retirement assets, timing is everything. Your strategy will depend on where your assets are located, tax liability, and other considerations.
The prospect of higher tax rates in the years to come can make the Roth IRA an attractive option for investors.
The road to personal wealth requires the ability to see the benefit of long-term planning over instant gratification.
Inheriting an IRA from a spouse or other family member can present tax challenges.
Provisions to take up to $100,000 penalty-free from your retirement plans expire on December 31st
It’s never too early to plan for retirement, or to earn compound interest on investments. Even a teen working a summer job can open a Roth IRA.
How confident are you that you’ll reach the number you need for a comfortable retirement?
Roth IRA conversions seems to be appropriate for many investors right now. Make sure you understand the ramifications before going ahead.
With a 2025 deadline and shifting political landscape, it may be appropriate for some investors to convert traditional IRAs to Roth IRAs.