Roth IRA

When saving for retirement, investing in either a traditional 401(k) or a Roth 401(k) is a smart idea if your employer offers one. But they aren't exactly the same. Each type comes with its own pros and cons.The main, and most well-known, difference between a traditional 401(k) and a Roth 401(k) is the time at which your money is taxed, but there are other factors to consider … [Read more...] about Differences between Roth vs. traditional 401(k)

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?

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?

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

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?

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

If you've got more bills than money, the usual advice is to trim expenses and find additional income. But some ways of raising cash can be a lot more expensive than others. Here are four that should be avoided, if possible, and what to consider instead. BEWARE RAIDING A RETIREMENT PLAN A big chunk of the money contributed to retirement plans leaks out as … [Read more...] about 4 cash-raising pitfalls (and better options)

The brokerage you use is crucial to your long-term investment success. So if you suspect that your existing provider is… The brokerage you use is crucial to your long-term investment success. So if you suspect that your existing provider is not serving you, switching brokers should be top of mind. Since … [Read more...] about How to Switch Brokers and Successfully Move Investments

Tycoons like Warren Buffett and PayPal founder Peter Thiel have been hoarding millions or even billions of dollars in tax-sheltered retirement accounts, according to a recent report from ProPublica. Here’s one trick you can easily copy from the world’s wealthiest. After all, it was designed for you in the first place.While lawmakers are promising to close loopholes in the tax … [Read more...] about Billionaires like Warren Buffett are blowing up this retirement account; you also can

© Provided by The Motley Fool 3 Unusual Tactics to Retire Wealthy Saving enough for retirement can be a struggle. And if your goal isn't just to scrape by but to retire wealthy, you'll need to do much more than invest 10% of your income for your later years.  The good news is, there are a few tactics to try out that can maximize your chances of being in great financial shape … [Read more...] about 3 Unusual Tactics to Retire Wealthy