pixelfit/Getty ImagesThe college admissions and financing process is nothing short of daunting for many Americans. With costs of higher education skyrocketing, particularly for private institutions, it’s never been more important to start saving for college as early as possible. The 529 college savings plan is one of many financing options you may have heard about or … [Read more...] about How Do 529 College Savings Plans Work and Are They Worth It?
Roth IRA
Does it make sense to convert my IRA to a Roth?
Q. I am trying to figure out if it makes sense for me to convert my traditional IRA, worth about $27,000, to a Roth or to roll it into my deferred compensation plan. I am retired, age 62 and have a decent state pension plus Social Security. I won’t touch my deferred compensation plan until I have to take mandatory minimums and we max out our Roth each year. My husband … [Read more...] about Does it make sense to convert my IRA to a Roth?
Are Higher Taxes On The Way? Having A Strategy Is Essential
By Reid JohnsonThe current administration has already spent $1.9 trillion on COVID relief and has plans to spend trillions more on infrastructure projects, Medicaid expansion, education, and climate investments.In order to fund these projects, the administration has proposed several tax-increasing measures on corporations and wealthy individuals. Under his plans, the corporate … [Read more...] about Are Higher Taxes On The Way? Having A Strategy Is Essential
How can you separate a Roth IRA’s principle and gain?
Q. Am I correct that if you convert to a Roth IRA, you can withdraw the amount converted at any time with no tax and the gain would be taxed if it is not in the account for five years? If this is correct, how do you distinguish when a withdrawal is made between principal or gain?— CalculatingA. Yours is a great question.Yes, you are correct that under current tax laws, you can … [Read more...] about How can you separate a Roth IRA’s principle and gain?
Is Roth IRA better for young workers? || Darrin Gifford
File/ eExtra News If you’re in the early stages of your career, you’re probably not thinking much about retirement. Nonetheless, it’s never too soon to start preparing for it, as time may be your most valuable asset. So, you may want to consider retirement savings vehicles, one of which is an IRA. Depend ing on your income, you might have the choice between a … [Read more...] about Is Roth IRA better for young workers? || Darrin Gifford