- I’m 65 With $950k in an IRA. Is It Worth It to Convert $150k per Year to a Roth IRA to Avoid RMDs and Retirement Taxes?
A Roth IRA conversion is available any time you have money in a qualifying pre-tax account. People choose to make a conversion to reduce future required minimum distributions (RMDs), spread taxes over several years and create a source of tax-free retirement income. But the success of this strategy will depend on your timing. Earlier conversions… read more…
- How to Build a Roth IRA Portfolio for Long-Term Growth
A Roth IRA is a tax-advantaged retirement account many people use to build long-term savings, but its rules and benefits can be confusing. Because qualified withdrawals are tax-free, the investments you select inside the account may influence your future retirement income. Whether you are opening your first Roth IRA or updating an existing one, knowing… read more…
- I’m 58 With $680k in My 401(k). Does It Make Sense to Pivot to Roth Contributions?
Roth IRAs can be appealing because they allow tax-free withdrawals and have no required minimum distributions (RMDs). For younger savers, paying taxes now for tax-free growth later can be a smart move. But, if you are near retirement, this strategy can be more complicated. Balances are typically larger, the time to grow tax-free is shorter… read more…
- Are Roth IRA Contributions Tax Deductible? Rules and Exceptions
With a Roth IRA, you contribute after-tax dollars, so there is no tax deduction when you put money in. The benefit comes later because your investments grow tax-free and qualified withdrawals in retirement are also tax-free. This differs from traditional IRAs, which give you a tax break upfront but require you to pay taxes when… read more…
- How to Move Money From a Roth IRA into Stocks
If you have money in a Roth IRA, you may be wondering how to move some of it into stocks to maximize your investment potential. This is an important consideration. Choosing to save in a Roth IRA provides significant tax advantages. However, the way you allocate the funds within the account may have a larger… read more…
- HSA vs. Roth IRA: Pros and Cons for Retirement
The comparison between HSA vs. Roth IRA for retirement planning isn’t about choosing one over the other. Rather, it’s about understanding how each might fit into your comprehensive financial plan. Your health needs, current tax situation and retirement timeline are all relevant in determining the optimal strategy. As healthcare costs continue to rise and represent… read more…
- How to Convert a 529 Plan to a Roth IRA
A new opportunity has emerged for families with leftover college savings: converting 529 plan funds to a Roth IRA. Previously, withdrawing 529 funds for non-educational expenses meant facing income tax and a 10% penalty on earnings, creating a dilemma for families whose children received scholarships or chose not to attend college. But thanks to the… read more…
- We Will Make $360k Combined This Year. Can We Use a Backdoor Roth Strategy to Reduce Our Taxes?
A backdoor Roth can sometimes be a good idea. The government puts income limits on who can contribute to a Roth IRA portfolio. In 2025, these limits are set at $165,000 for single filers, and $246,000 for joint filers. If you’re above this cap, you cannot contribute money to a Roth IRA. However, there is… read more…
- We’re in Our 70s With Our Home Paid Off and $350k in IRAs. Can a Nursing Home Take Any of It?
No, but also yes. A nursing home cannot unilaterally take your assets or property, even if you are staying there. Nursing homes have the same rights and limitations as any other business. If you sign a contract and don’t pay, then a nursing home can theoretically sue and collect assets for breach of contract. Even… read more…
- What Tax Bracket Does It Make Sense to Start Converting Traditional IRA to a Roth?
Your current tax bracket is an important consideration when evaluating whether to convert a tax-deferred retirement account to a Roth account. However, it’s just one of several elements to keep in mind. For example, your tax bracket in retirement is just as important as the one you’re in now. If you’re in a lower tax… read more…
- Roth IRA vs. Index Fund: What’s the Difference?
The comparison between a Roth IRA and an index fund often mixes structure with strategy—one is a retirement account, the other an investment product. A Roth IRA provides tax-free growth and withdrawals, while an index fund offers low-cost, diversified market exposure and can be held within or outside that account. Viewing a Roth IRA and… read more…
- I’m 50 With $650k in My 401(k). Should I Pivot to Roth Contributions?
At age 50, Roth contributions might be valuable, for the right household. With a Roth portfolio, the question is balancing the opportunity costs against the long-term savings. Here’s the general rule of thumb: For most households, if you get started in your 20s and 30s, a Roth’s untaxed growth will typically generate benefits that outweigh… read more…
- I’m 61 With $890k in My IRA. Should I Convert 10% per Year to Avoid Taxes and RMDs in Retirement?
When should you use a Roth IRA to manage your taxes? As you hit your 60s, it’s common to shift retirement planning from general wealth accumulation to practical details like taxes and required minimum distributions (RMDs). Getting this right matters, because how you manage these tax requirements will help determine how much spending power you… read more…
- Can an Employer Contribute to an Employee’s Personal Roth IRA?
Employers can’t contribute directly to an employee’s personal Roth IRA, but they can still help with retirement savings in other ways. The SECURE 2.0 Act allows employers to contribute to SIMPLE IRAs and SEP IRAs that are set up as Roth accounts. This can provide employees with the benefits of Roth savings, including tax-free withdrawals… read more…
- Inherited IRA vs. Spousal IRA
Inherited IRAs and spousal IRAs are two different types of accounts that you can use for retirement planning. An inherited IRA is created when someone inherits that account, often from a non-spouse. A spousal IRA allows working spouses to contribute to the account for non-working or low-earning spouses. A financial advisor can help you understand… read more…
- Peter Thiel Made $5 Billion in a Roth IRA: How the Tech Entrepreneur Made a Tax-Free Fortune
A Roth IRA, under the right conditions, is the best retirement vehicle you can have. Just ask Peter Thiel. According to ProPublica reporting sourced from IRS records, between 1999 and 2021 Thiel grew his Roth IRA from $2,000 to more than $5 billion. This is significantly more than the average household’s IRA balance, reported by Fidelity… read more…
- I’m Making $155,000 Salary This Year. Can I Still Contribute to a Roth IRA?
The IRS limits Roth IRA contributions based on household income. Each year, the IRS publishes its inflation-adjusted income caps on Roth contributions. This is a range called the “phaseout.” Households with income below this range can make a full contribution to their Roth IRA. Above this range, a household cannot make any contributions. Within it,… read more…
- Roth IRA Rules for Living Abroad
Americans living abroad can still benefit from a Roth IRA for retirement savings, just like those in the U.S., but there are some extra considerations. Both expatriates and U.S.-based savers need earned income to contribute, but foreign income exclusions may affect eligibility for those living overseas. Expatriates should also be aware of how foreign tax… read more…
- Why Invest in a Roth IRA?
Roth IRAs are unique retirement savings accounts that offer several compelling benefits that make it an attractive option for individuals looking to maximize their financial future. Unlike traditional IRAs, contributions to a Roth IRA are made with after-tax dollars, allowing your investments to grow tax-free. This means that when you retire, you can withdraw your… read more…
- Can Retirees Contribute to a Traditional or Roth IRA?
Tax-advantaged retirement accounts such as traditional and Roth IRAs are important tools for retirement planners accumulating wealth to provide for a secure retirement. And, under the right circumstances, individuals can continue to take advantage of these tax benefits by contributing to traditional or Roth IRAs after they have retired. The key requirement for contributing to… read more…
- 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…
- 8 Benefits of Maxing Out Your Roth IRA
Maxing out your Roth IRA each year is one of the smartest moves you can make for long-term financial security. This powerful retirement account offers a rare combination of tax-free growth, flexible withdrawal options and freedom from required distributions later in life. Whether you’re just starting your career or planning your retirement strategy, consistently contributing… 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…