Joe Udo
(k) loan, unless you repay it. You can avoid taking the tax hit by rolling over the outstanding balance into an IRA or another eligible retirement plan by the due date (after extensions) for filing your federal income tax return for the year in which the loan was characterized as a ...
Roth accounts, on the other hand, do NOT get deducted at tax-time. These contributions are considered “after-tax”, which means they were made with money that you paid income taxes on. You pay taxes today and do not see any savings on your tax bill when you contribute to a Roth...
Because I’ve mostly forgone income this year, I’ll be able to roll over a chunk of money from the 401k to my Roth IRA. I’ll still need to pay taxes on it, but at least it will be now while my income is effectively zero and I can minimize the tax hit. Next year? Well, we...
IRA in most cases without tax. This is because the 401k isn’t subject to the “little bit pregnant” rule alluded to earlier. Once you’ve removed the after-tax contributions and put them into a Roth IRA, you might want to rollover your 401k (the remaining money) if it makes sen...
► Is the Roth IRSA really an advantage?► How to Use 529 Pans - EVEN IN RETIREMENT!► The old standby - municipal bonds► Sell your house and pay $0 Capital Gains► How 85% of Retirees pay $0 tax on Stock Dividends and Capital Gains► Pay the lowest amount (or maybe $0)...
If more cash is needed, Jane can considera backdoor Roth IRAstrategy whereby you convert a traditional IRA into a Roth. This can be a very high tax event, so tread carefully. How Would This Work? Based on the low annual expense estimates above, this should carry them through ...
If I’m to retire at age 55 or earlier, I want to primarily fund my lifestyle with taxable funds so that tax-advantaged savings can be utilized after 59 1/2. Each year Imax out my 401k,my Roth IRA, Mrs. RBD’sspousal Roth IRA, and529 plansfor all three kids with my salary inco...
► Is the Roth IRSA really an advantage?► How to Use 529 Pans - EVEN IN RETIREMENT!► The old standby - municipal bonds► Sell your house and pay $0 Capital Gains► How 85% of Retirees pay $0 tax on Stock Dividends and Capital Gains► Pay the lowest amount (or maybe $0)...
Only after you are satisfied with your advisor's answers should you consider paying for financial advice. In fact, I recommend spending at least a couple months managing your finances on your own before making a decision. Who knows. You might discover your own financial guru inside after utiliz...