Roth IRA

As soon as you reach 59 1/2 and have checked the box on the five-year rule, you'll be eligible to withdraw every penny in your Roth IRA 100% tax-free. You can think of it as a retirement bonus that you'll earn for paying your tax bill upfront and being patient during the growth process.As you grow older, your Roth IRA has the potential to grow with you thanks to the power of … [Read more...] about Why a Roth IRA Is Your Retirement Best Friend | Personal Finance

Should you contribute to a Roth IRA, Traditional IRA or a 401(k)? In this video, I’ll share everything you need to know about a Roth IRA, Traditional IRA & a 401(k), to help you decide which contribution to make. About Alvin Carlos, CFA, CFP® Alvin … [Read more...] about Blog: Roth IRA vs Traditional IRA vs 401(k)

Prostock-studio / Shutterstock.comEditor's Note: This story originally appeared on SmartAsset.com.Including tax-deductible investments in your portfolio can increase your returns since you are shielding a portion of your portfolio’s returns from income tax. If you choose the right tax-deductible investments, you can fund education expenses and medical expenses along with your … [Read more...] about 4 Tax-Deductible Investments for Your Portfolio

Two members of Congress who have long been responsible for shaping federal laws on retirement savings are considering major reforms after ProPublica exposed how the ultrawealthy are turning retirement accounts into gargantuan tax shelters. Rep. Richard Neal, the Massachusetts Democrat who chairs the powerful House Ways and Means Committee, … [Read more...] about Campaign to Rein in Mega IRA Tax Shelters Gains Steam in Congress Following ProPublica Report — ProPublica

Image source: Getty Images.But while there are plenty of perks that Roth IRAs have to offer, you don't want to open one for the wrong reason. And if you offer a Roth IRA because it's easy to pull money out of that account ahead of retirement, then you could end up doing yourself a major disservice.The downside of too much flexibilityIn addition to tax-free investment gains and … [Read more...] about This Is a Really Bad Reason to Open a Roth IRA | Personal Finance

Social Security will be one of your most important income sources in retirement. Although these benefits replace only around 40% of pre-retirement earnings, they're valuable because they're guaranteed to last for life and protected against the effects of inflation. While the average Social Security benefit isn't enough to live on by itself, there are some things you can do now … [Read more...] about 2 Easy Moves to Make Now for More Social Security Later

When it comes to saving for retirement, you have choices. You could open a traditional IRA and enjoy a tax break on the money you put into that account. Or, you could open a Roth IRA and forgo an initial tax break, but enjoy other benefits down the line. Roth IRAs allow the money you invest to grow tax-free, and withdrawals in retirement are also tax-free. That could, in turn, … [Read more...] about This Is a Really Bad Reason to Open a Roth IRA

Infrastructure fantasies; trouble with the U.S.-Malta Treaty; the future of contactless prep; and other highlights from our favorite tax bloggers.Fair warningTaxable Talk (http://www.taxabletalk.com/): This post “35,300,000” looks at the recent National Taxpayer Advocate’s semi-annual report to Congress, which offered “the true state of tax returns at the IRS. Fair warning, … [Read more...] about In the blogs: Smart advice

For those facing difficult and unexpected life events, one of the most cumbersome and difficult things to have to deal with revolves around household finances. A book authored by a certified financial planner tailors the subject matter of the work specifically to this subject, and in one chapter details how a reverse mortgage might be able to be used strategically for someone … [Read more...] about Financial Strategy Book Details How a Widowed Spouse Can Use a Reverse Mortgage

(Newser) – ProPublica is continuing its investigative series on how the richest of the rich avoid paying taxes, and the latest story is surprising in that it revolves around a "relatively … [Read more...] about How Peter Thiel Used Loophole to Amass $5B in His Roth IRA