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Roth IRA

Roth IRA for Youngsters

It’s a great idea to contribute to a Roth IRA for your child. It’s not a good idea to invent income in order to make the contribution, though.

Is It Really Allowed – Making a Non-Deductible IRA Contribution Followed By a Roth Conversion?

Understanding the Roth Conversion of previous non-deductible IRA contributions. Also known as the Back Door Roth contribution.

Which Retirement Account Should You Tap First?

Wondering which retirement account you should access first? This article walks through some of the requirements and consequences to know.

10% Penalty Applied to Roth Conversion? Maybe

There are cases where you might get charged the 10% penalty on a Roth conversion. Pay attention to what you’re doing to avoid it!

NUA and the Roth Conversion

Can you use a Roth conversion for NUA-treated stock? Unfortunately no, and this article explains why it’s not an option.

Staging Your Roth IRA Conversion

You can benefit in the long run by staging your Roth IRA conversions. This can reduce taxes and potentially eliminate RMDs.

A Good Reason to Not Convert to Roth

Another facet that you might want to think about as you consider whether to convert traditional IRA monies to Roth IRA.

IRA Cross Loans – Don’t Even Think About It

Don’t attempt to go around the prohibited transaction rules by using cross loans with your IRA. It won’t turn out well.

Running Afoul of the One-Rollover-Per-Year Rule (and How to Fix It)

In case you’re not aware of it, there is a strict rule that the IRS applies with regard to IRA rollovers: you are allowed to roll funds over from an IRA using the 60-day rule only once during each 12-month period. FYI: Trustee-to-trustee transfers are not considered rollovers for this rule. Here’s an example of what could happen: Early in the year, you withdraw some money from your IRA to help you catch up on some bills. Then, you receive a bonus within the 60-day period after your withdrawal, so you deposit those funds back into the same (or any other) IRA. Later in the year, you want to take another short-term distribution from your IRA, and once again circumstances present the opportunity to put the funds back into the first IRA… but now you’re stuck. You can’t roll the distribution back into the original IRA (or any IRA), since […]

Rolling Over Your Roth 401(k)

Rolling over a Roth 401(k) can make a lot of sense. There are a couple of things to think about, but it’s a good idea most of the time.

Beyond 401(k) and IRA

You’re contributing as much as you’re allowed to a 401(k) or other employer-sponsored retirement plan. If your income allows it, you’re also contributing the maximum annual amount to your Roth or traditional IRA. But you still want to set aside more money beyond 401(k) and IRA, to make sure your retirement is everything you hoped for. What options do you have? Here are some things to consider… Before moving beyond – are you really maxing our your 401(k) and IRA? IRAs and employer-sponsored retirement plans like 401(k)s have some real advantages when it comes to saving for your retirement. So, before you go any further, make sure you’re really contributing all you can. In 2020, most individuals can contribute up to $19,500 to a 401(k) plan, and up to $6,000 to a traditional or Roth IRA (subject to income limitations). If you’re age 50 or better, though, you can make […]

Large IRA Planning Opportunities

If you have a large IRA, required distributions could eventually pose a tax problem for you. In your early 60’s it might make sense to do some planning.

Integrating Roth IRA With Social Security Benefits

It can pay off if you plan on integrating Roth IRA with your Social Security benefits. Conversion to Roth IRA can be very beneficial in surprising ways.

Roth IRA Eligibility

What are the eligibility requirements for Roth IRA contributions? There are limits based on your income level that you need to be aware of.

A Roth IRA for a student is a great idea!

Summer earnings can be contributed to a Roth IRA for a student. This can be an important part of a life-long savings habit.