Reichenstein, WilliamJournal of Financial Planning
Comparing tax savings: Traditional IRA vs. Roth IRA If you’re looking for last-minute tax savings this year, you’ll want to make sure that you select the right IRA – the traditional IRA. But you should watch out because there’s another kind – theRoth IRA– that gets you tax savin...
On the other hand, if you believe your tax rate will behigherduring retirement, funding a Roth account could be a better strategy. If your employer offers the option and you haven't already maxed out your traditional 401(k), you can makeafter-tax contributions to a Roth 401(k)up to th...
If you do, you’ll see that you probably have better alternatives. Annuities have a few redeeming qualities but not many. The rates are low, the tax treatment is disadvantages and liquidity is unacceptable. If you find yourself drawn to annuities it may be out of fear rather...
Sure, Tax Day isn’t for a few more months. Still, now is a good time to review your tax withholdings and payments. If you had a major life event in 2024—like a marriage, divorce, or child—you probably want to adjust your withholding. Check out theTax Withholding Estimatorfrom the ...
The second option – Just Pay the Penalty – is almost universally frowned upon but its really not a bad solution, especially for heavy earners. Paying 10% penalty on a few withdrawals seems better than paying 22%-32%+ tax during our peak earning years. ...
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 ...
Retirement Retirement-plans Roth-iras 529 to Roth IRA: Should You Rollover Unused Funds Before Year-End? Want to boost your retirement savings before the year is over? You can roll over unused funds from your 529 plan into a Roth IRA, tax-free, as long as certain condition...
(as much as 1.75%) but if you have a larger portfolio size ($1,000,000 or more) and are paying advisory fees in excess of 1% then you better be getting additional services included in addition to investment management. Additional services might include comprehensive financial planning, tax ...
You don’t want to have money sitting in a checking account that you can afford to keep investing in atax-advantagedretirement account. And unless your account is aRoth IRA, with no taxes due on withdrawals, you don’t want to pay more in taxes on distributions each year than you have...