Roth IRA

President Joe Biden has recently proposed a 39.6% top marginal income tax rate, up from 37%. The top tax rate is scheduled to be increased to 39.6% after 2025 when the current Tax Cuts and Jobs Act is set to expire even if Congress doesn’t pass the President’s proposal. If Congress does pass the legislation to enact the higher proposed rate, which isn’t assured, it would kick … [Read more...] about Why Now Is Prime Time For Roth IRA Conversions

As millennials begin to turn 40 in 2021, CNBC Make It has launched Middle-Aged Millennials, a series exploring how the oldest members of this generation have grown into adulthood amid the backdrop of the Great Recession and the Covid-19 pandemic, student loans, stagnant wages and rising costs of living.Older millennials entered adulthood around the time of the 2008 financial … [Read more...] about Older millennials must balance student loans and saving for retirement

In a June investor presentation, the company noted that it has some 290 data centers across 47 metro areas around the world, and that it's the sixth-largest publicly traded U.S. REIT. Its top five customers include IBM, Facebook, and Oracle -- with roughly 30 to 40 data centers for each.The only knock against Digital Realty Trust is that it's not exactly a bargain stock at … [Read more...] about 3 Great Stocks for Your IRA | Personal Finance

A woman happily rides a bike with her scarf blowing in the wind. Getty Images You know the importance of saving enough money for retirement so that you have readily available sources of funds to augment your guaranteed income from Social Security and any pensions. But did you also know that how you go about converting your assets into income can have significant tax … [Read more...] about How to Generate Tax-Efficient Retirement Income

Roth conversions almost always work out in a client’s favor, but not necessarily for the reasons that advisers often recommend them, according to an academic study published this week. Contrary to conventional wisdom, tax-rate changes — up, down or flat — have a minimal effect on the long-term financial benefits from converting a traditional IRA or 401(k) to a Roth account, … [Read more...] about Roth conversion almost always pays off, but not much, study finds

Millions of Americans may need to decide what to do with their old 401(k) plans, as the coronavirus-driven recession threw them out of work or they moved to a new employer. With the economy bouncing back somewhat, it may be time to consider your options with your 401(k). © tomazl/Getty Images A mixed race couple discusses over a laptop If you remain unemployed or are … [Read more...] about Here’s what to do if you lose or change your job

John Lund/Marc Romanelli | Getty ImagesIt's no secret that Covid-19 has upended people financially at all stages of life.Now, one new report shows just how the pandemic has changed the way people think about retirement.The study from Age Wave and Edward Jones finds that about 1 out of every 3 Americans who are planning to retire now say that will happen later due to … [Read more...] about A third of Americans plan to retire later due to Covid-19, study finds

Vax bill back: A fourth hearing has been scheduled on Tuesday for House Bill 248, the bill that would prohibit employers from mandating workers be vaccinated and would require schools to notify parents of all the opportunities to exempt their kids from shots, among other changes. This time, opponents are scheduled to testify, after the last two hearings contained in-person and … [Read more...] about Opponents to testify this week on controversial Ohio vaccine bill: Capitol Letter

Many Americans don’t save enough for retirement, but it’s entirely possible to save too much — at least according to the IRS.Tax laws limit how much you’re allowed to contribute to retirement accounts, and excess contributions can be penalized. Uncle Sam doesn’t want you to leave the money in the account too long, either. Those who fail to take enough out of their retirement … [Read more...] about What to do if you save too much for retirement

Dear Liz: Can you explain the difference between a Roth IRA and a Roth 401(k)? What are the benefits of a Roth 401(k)? My company offers it and I am considering beginning to make deferral contributions there while continuing my 401(k) contributions.Answer: Contributions to Roth IRAs and Roth 401(k)s are after tax, which means you don’t get an upfront tax deduction as you do … [Read more...] about Liz Weston: What are the differences between a Roth IRA and Roth 401(k)?