CalcXML's IRA Calculator will help you determine if you are eligible and how much you and your spouse can contribute to either a Traditional IRA or a Roth IRA.
Foolish bottom line The biggest question to ask yourself when trying to decide if a traditional IRA or Roth IRA is best for you (from a tax perspective, at least) is when you want your tax benefit -- now or after you retire. Remember, Roth IRA contributions aren't deductible, but quali...
Bond funds Bond funds feature corporate bonds, Treasury bonds and other debt securities. Because there's a set rate of return, they're also known as fixed-income funds. While bond funds have less potential for growth than equity funds, they're also considered a safer investment — which make...
Even for retired couples with more modest income, a Roth rollover can make sense if it's anticipated that one spouse will outlive the other. The reason is that after the death of one spouse, household income may not drop all that much. When that's the case, being taxed as a single fi...
I fully expect the vast majority of Financial Samurai readers under 40 to be millionaires by their 60s. If you are fortunate to have a job for so long, accumulatinga million dollars in your 401kor rollover IRA alone by 60 should be the reality for most. ...
A Roth IRA is a type of individual retirement savings plan. Like many other retirement savings options, a Roth IRA allows you to grow money you have invested without the earnings being taxed. Because a Roth IRA is contributed to with after-tax dollars, however, your contributions are not ...
The alternate payee can rollover QDRO assets into their own retirement plan or into a traditional IRA without taxation or penalty. If an alternate payee wishes to rollover their award into a Roth IRA it will be taxed as a conversion, but it will not be penalized. ...
Monster Retirement Budget [Spreadsheet]– This is by Robert R. who factored in the following: Taxes, Medicare, Medicare supplements, Medigap, healthcare coverage pre-Medicare, dental and vision, Social Security, and usingRoth IRA Contributionsand the 72t rule for pre-tax accounts to cover budget...
over amounts which exceeds the amounts taxed in connection with the conversion to a Xxxx XXX is includable in income (and subject to penalty tax) if it is distributed prior to the end of the five-tax-year period beginning with the start of the tax year during which the rollover occurred...
You can usuallymove your 401(k) balanceto a new employer’s plan.31As with an IRA rollover, this maintains the account’s tax-deferred status and avoids immediate taxes. If you aren’t comfortable with managing a rollover, you can leave some of the work to the new plan’s administrator....