If your employer offers a 401(k) or other retirement plan, contributing to that plan is a foundation of your retirement savings. However, as you approach retirement age, you might consider moving some of your retirement funds out of your employer’s plan and into an IRA at a custodian like TD Ameritrade or Fidelity.
Tag Archives | Roth IRA
Last week I covered strategies for when to use Roth IRAs. An additional aspect of Roths is the benefit of being able to do a conversion from a traditional IRA to a Roth. It is best to consider doing a Roth conversion when your current tax bracket declines temporarily below the bracket you expect to […]
When saving money for retirement, taxes are not your friend. Their impact, even for those in lower tax brackets, can significantly reduce one’s retirement income. One of the better vehicles Congress created to help people save money that can grow tax-free is the Roth IRA. Unlike a traditional IRA, there is no current tax deduction […]
The President has fired the first warning shot indicating that politicians are eying the tax advantages of the Roth IRA. For years I’ve strongly encouraged maximum funding of Roth IRAs and 401(k)s. Clients have sometimes expressed concern that politicians would someday retroactively change the rules and strip the plans of their tax advantages. I’ve seen […]
Your teenager is in the last month of his or her summer job, and chances are the wages have been collecting in a bank account. What should happen with that money when your child goes back to school? One possibility is to start a custodial Roth Individual Retirement Account, owned by your teenager. All you […]