Roth IRA

Tax rates seem likely to rise for the wealthiest and highest-earning taxpayers under the Biden administration. For those with traditional retirement accounts, making moves ahead of tax law changes can reduce income-tax bills in retirement.The key strategy to pursue is the Roth conversion. These allow account owners to transfer some or all of the money in a tax-deferred IRA or … [Read more...] about Biden Tax Plan’s Potential Impact on Your IRA 

Q. Myself and my two sisters are in line to inherit my mom’s IRA. We’ll split the inheritance three ways. She currently has $900,000 in a traditional IRA and I’m wondering if it is better for her to convert it to a Roth IRA so my sisters and myself will be able to live off the Roth IRA with tax-free withdrawals for living expenses. Is that a better deal for us three children? … [Read more...] about Should mom convert her IRA to a Roth so we save on taxes?

Whether you are already retired or are thinking about it, establishing a plan to coordinate both anticipated retirement goals and a plan for legacy assets is critical. Depending on their intended purpose, your assets may need to be managed distinctly differently to allow for a cohesive, successful outcome.Where to Begin?When developing (or making changes to) your estate plan … [Read more...] about Planning for Retirement Assets in Your Estate Plan

When you first learn to manage your money, you will likely feel like you are drowning in a sea of strict rules to follow: Pay off your debt, create a budget, live within your means, save more, start investing… the list goes on. The nice thing about being in this stage, however, is that it’s pretty easy to find objectively correct answers to the questions you likely have at … [Read more...] about How To Think Though Hard Financial Choices And Make Better Money Decisions

Fortunately, there's still time to contribute to your child's Roth IRA for 2020. The deadline to contribute to an individual retirement account is the same day that federal income tax returns are due. The IRS pushed the 2020 filing date from April 15, 2021 to May 17, 2021. This gives you a little more time to stash some cash away for your child's future.Make sure your kids … [Read more...] about Don’t Miss Out on Funding Your Child’s Roth IRA for 2020 | Personal Finance

Money expert Clark Howard thinks Roth IRAs are just about the best tool around when it comes to saving for retirement. So learning how to open a Roth IRA is something you should consider. In this article, I’ll go through the steps you need to take to open a Roth IRA and give you tips to make sure you’re maximizing your retirement investment strategy. Table of Contents Why … [Read more...] about How To Open a Roth IRA

Jen and I recently taught a class at Cape Cod Community College on how to build a sound retirement system. It’s a popular class we teach throughout the year. The class examines numerous planning questions, such as income, investment, distribution, and estate strategies for people nearing or already in retirement. The goal of this class is to help folks manage both their tax … [Read more...] about Teaching Retirement | Columns | capenews.net

May 10, 2021 on ForYourBenefit, host Bob Leins, CPA® and co-host John Elliott welcome John Jilek, CFP®. The Basics: Roth IRA vs. Traditional IRA The Advanced: Roth TSP vs. Pre-Tax TSP Potential and actual tax law changes that may affect your decisions The decision to not have some Roth money available in retirement could be a significant issue Impact of Secure Act on … [Read more...] about Roth vs. Traditional IRA and TSP

Families spent an average of $30,017 on college during the 2019-2020 academic year, according to the Sallie Mae report How America Pays for College.More than one-third of families used a college savings account such as a 529, which is up from 21% in 2018-2019.If you look closer at the report, you'll also see a list of other ways parents and students pay for college. A … [Read more...] about Should I Use a Roth IRA to Pay for College?

Many people had to tap into their retirement savings during the pandemic. Dulce Jimenez, a personal chef, is among them. When the pandemic hit, she said she lost most of her clientele. “I had five clients, one for every day of the week, all the clients canceled,” Jimenez said. She said the loss of income forced her to look for a way to stay afloat financially. “As you … [Read more...] about NBC 6 Responds Helps Woman Fix Retirement Account Error – NBC 6 South Florida