So you can add the period certain to your annuity, but take care not to have it be longer than the distribution period for RMDs. -Hersh Paul 2015-03-16 10:01:04 I'm thinking about transferring money from my IRA into an immediate annuity. My account has both traditional IRA contributions...
If you have a Roth 401(k), the money taken out of your paycheck and put into the account is included in your taxable income. But withdrawals are completely tax-free if you’re at least 59½ years old and have held the account for at least five years (otherwise, t...
If you have taken more than one distribution in the past 60 days, those additional distributions could be put into a Roth IRA, using a strategy called an indirect Roth conversion. Although you won’t avoid the tax on those distributions, you’ll have the benefit of letting tha...
Converting a portion of my Traditional IRA to my Roth IRA (this is treated as ordinary income by the IRS) Because both are considered taxable events by the IRS, both contribute to AGI. And because I have full control over the amount of income each generates, I can dial in my AGI to ...
Where most tax-advantaged retirement accounts like 401(k)s and 403(b)s require you to begin taking required minimum distributions (RMDs) at age 73, the Roth IRA has no such requirement. If you want to keep your money in your account for a lifetime, the Roth IRA will let you do so...
We expect our post-nomad expenses—in our so called “no-go” years to be around 60K, covered by our Social Security, using dividends and RMDs for shorter stints of travel. Won’t You Get Bored? “Boredom is the inability to pick up on subtle vibrations.” ...
If you choose to fund a traditional IRA, you can effectively lower your tax liability and put yourself into a lowertax brackettoday. That's because these accounts are funded using pre-tax dollars. If you fund a Roth IRA after retirement, you can allow your savings to grow tax-free because...
560) of your contribution. If the money were put into a traditional IRA instead, it would reduce your tax bill because taxes are deferred until you make withdrawals. This allows you to use that additional 24%—significantly increasing the size of ...
You have five options as a self-employed individual to save for retirement: Traditional IRA:Allows you to make pre-tax contributions, which can grow tax-deferred until you withdraw them in retirement. Roth IRA:You'll make post-tax contributions with the benefit of tax-free growth and withdrawa...
Another workaround to access a short-term Roth IRA loan is the 60-day rule. The IRS allows tax-free rollovers from a Roth IRA to another Roth IRA retirement plan or back into the same IRA within 60 days from the date of distribution without triggering taxes or penalties.2 Can You Borro...