- Self-Directed IRA vs. Traditional IRA
Understanding the difference between a self-directed IRA and a traditional IRA can help you decide how and where to invest your retirement savings. A traditional IRA is a popular choice for many investors, offering tax-deferred growth on contributions made with pre-tax dollars. This means you don’t pay taxes on your investments until you withdraw them… read more…
- 3 Benefits of an IRA Over a 401(k)
Saving for retirement is an important part of financial planning, and choosing the right investment vehicle can make a significant difference in your long-term financial well-being. While employer-sponsored 401(k) plans have become a popular choice for many workers, individual retirement accounts (IRAs) offer several compelling advantages that should not be overlooked. Here are three benefits… read more…
- How to Choose an IRA Provider
A key decision associated with retirement planning involves choosing where to open and maintain an individual retirement account (IRA). As you contemplate how to choose an IRA account, you’ll want to consider how you want to manage your account or whom you want to handle it for you. Whether you’re considering a hands-on approach, utilizing… read more…
- 7 Benefits of Maxing Out Your Roth IRA
Whether you’re just starting to save, looking to optimize your existing retirement plan, or considering how to pass on your wealth, knowing which retirement strategies and financial tools are available can help you secure your financial future. Here are the benefits of maxing out your Roth IRA every year, but if you need to a… read more…
- Is a Roth IRA a Qualified Retirement Plan?
The Roth IRA stands out among other types of retirement accounts due to its unique tax advantages and withdrawal rules. But is a Roth IRA a qualified retirement plan? While Roth IRAs offer significant benefits and are regulated by the IRS, they do not meet the technical definition of a qualified retirement plan, such as… read more…
- How Getting Married Impacts Your Roth IRA
Getting married does not automatically impact your Roth IRA. Your portfolio and its tax status are unaffected by your marital status. However, in some situations, getting married can make you income-ineligible for Roth contributions. Additionally, getting married can mean making different plans around your Roth IRA. Here’s what you need to know. If you and… read more…
- How to Invest in a Socially Responsible Roth IRA
Environmental, Social and Governance, or “ESG,” investing is getting bigger. According to a 2022 analysis from PricewaterhouseCoopers (PWC), “with a projected compound annual growth rate (CARG) of 12.9%, ESG assets are on pace to constitute 21.5% of total global [assets under management] in less than five years.” And, while one-fifth of all global investments seems improbably… read more…
- What Should I Do with My Roth IRA Once I Retire?
Retirement typically means shifting your focus from diligently saving your money over the course of years and decades to managing those funds and spending them responsibly. To learn about all the options for handling your Roth IRA in retirement, talk to a financial advisor. If you have a Roth IRA, you have several options for… read more…
- I’m 60 With $1.2 Million in a Roth IRA. How Do I Make Sure This Money Lasts the Rest of My Life?
Planning for a Roth IRA is a little different than with most other retirement assets. This tax-advantaged account generates entirely untaxed income, as long as effectively boosting the value of your withdrawals and your Social Security benefits. That changes your options compared to having a pre-tax 401(k) or other non-Roth account. For example, say that… read more…
- How to Make Investments in Your Roth IRA
A Roth IRA is an account, not an investment, so once you’ve put money into the account it still must be invested. Common investment options for Roth IRA accounts include stocks, bonds, mutual funds, exchange-traded funds, money market accounts and certificates of deposit. Some sponsors offer many options, while others only have a few. Self-directed… read more…
- I’m 65, Taking Social Security and Have $830,000 in a 401(k). Is It Too Late to Convert to a Roth IRA?
There is no age limit on Roth conversions, so you can transfer pre-tax savings into a Roth IRA regardless of your age or retirement status. As long as you have qualifying funds in a pre-tax portfolio, you can move them to an after-tax Roth account. A financial advisor can help you make important decision surrounding… read more…
- What Is a Trusteed IRA?
A trusteed IRA is a type of individual retirement account that is set up as a trust. This account can benefit those who want to have the tax advantages of a traditional IRA and the asset management of a trust. Here’s a breakdown of what you need to know. If you need help deciding which… read more…
- What Happens If You Exceed the Roth IRA Income Limit?
The IRS puts annual income limits on a Roth IRA. When you exceed that limit, the IRS generally charges a 6% tax penalty for each year the excess contributions remain in your account. This is triggered at the time you file each year’s taxes, giving you until that deadline to remove or recharacterize the misplaced… read more…
- I’m 75 With $900,000 in an IRA. How Do I Make Sure This Money Lasts the Rest of My Life?
Ensuring that your retirement savings last the rest of your life often requires balancing income with expenses over your projected lifespan. But suppose you have $900,000 in an IRA. You’d also want to consider whether you want to leave behind a financial legacy. And since all long-range forecasts are subject to change, you’d need to… read more…
- We Have $1.4 Million in IRAs and Fully Own a $750k Home. Can We Retire in 2 Years at 60?
Retiring early can be tricky, even if you have considerable home equity. Say for example that you’re married with $1.4 million in your IRAs and a home worth $750,000. Retiring early could well be within reach, but you may face be a few big challenges. Retiring at age 60 means having to wait several years… read more…
- I Have $845k in a Traditional IRA. How Can I Reduce Taxes When Converting to a Roth?
There’s no way to entirely avoid paying income taxes when you convert a traditional IRA into a Roth account. However, with smart financial planning you can reduce the impact of those taxes. A financial advisor can help you roll over your retirement savings into a Roth IRA and manage your investments. Connect with a fiduciary… read more…
- What Is a Conduit IRA?
A conduit IRA is a strategic financial instrument that provides a bridge for individuals transitioning between jobs, freelance work, or other employment changes. This specialized investment account allows for the transfer of funds from qualified retirement plans, such as 401(k)s and 403(b)s, safeguarding individuals from potential tax repercussions associated with delayed reinvestment. By offering a… read more…
- I’m 68 With $950k in an IRA. How Do I Make Sure It Lasts My Whole Life?
Longevity risk is at the heart of retirement planning. You wind down work and income, counting on savings to carry you through the rest of your life. But with careful saving and money management, it might be possible to make this money last. For example, say that you recently reached retirement age at 68 and have… read more…
- What Are the Exceptions to the IRA Early Withdrawal Penalty?
Individual retirement accounts (IRAs) are tax-advantaged savings vehicles designed to help Americans save money for retirement. While there are tax benefits associated with IRAs, withdrawing money before age 59 ½ can trigger income taxes and a 10% early withdrawal penalty. However, the IRS makes several exceptions to this rule. If you need to withdraw money… read more…
- How an ESOP to IRA Rollover Works
An ESOP (Employee Stock Ownership Plan) is a qualified retirement plan that allows employees to become partial owners of the company they work for by acquiring shares of its stock. If you own an ESOP, you may be thinking about transferring it to an IRA, especially if you’re looking for greater flexibility, diversification, or to… read more…
- I Have $850,000 in an IRA and Would Receive $2,800 Monthly from Social Security. Can I Retire at 65?
For many retirees, prudent withdrawals from a wisely invested portfolio combined with Social Security benefits can provide a consistent income to support their spending needs. But what if you had $850,000 in an IRA and $2,800 in monthly Social Security benefits: would that be enough to retire at 65? To answer this question, you’d have… read more…
- I’m 67 With $2 Million in an IRA. How Do I Make Sure This Money Lasts the Rest of My Life?
If you had $2 million saved in an individual retirement account (IRA) by age 67, could you make it last the rest of your life? With some wise planning and investing, stretching a $2 million nest egg over several decades is entirely possible. A sensible approach could be to focus on budgeting prudently, balancing investment… read more…
- Tax Benefits of a Simplified Employee Pension (SEP) IRA
Retirement plans, like simplified employee pension (SEP) IRAs, go hand-in-hand with attractive tax benefits. Designed for self-employed individuals and small business owners, SEP IRAs allow employers to directly contribute to their employees’ retirement accounts and their own. In return, they will receive a tax deduction. However, there are other tax benefits associated with this type… read more…
- We’re 62 Years Old With $950k in IRAs. Is It Too Late to Convert to a Roth IRA?
Fortunately, there’s no age restriction on converting a pre-tax retirement account to a Roth IRA. You can roll funds from a qualifying pre-tax account to a Roth IRA at any time. A financial advisor can help you manage your retirement savings and build an income plan for your golden years. Connect with a fiduciary advisor… read more…
- I’m 65 With $1.4 Million in an IRA. How Do I Make Sure This Money Lasts the Rest of My Life?
With $1.4 million in your IRA at age 65, you have a robust nest egg that could potentially fund a secure retirement of 25 years or more. However, making sure that money lasts will require prudent planning. You’ll need to assess your income needs, balance investment risk and return, secure supplemental insured income streams, account… read more…