- 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
Investing in a Roth IRA account is similar to other retirement accounts in that you can choose certain securities once your account is created. Where the Roth IRA differs is its tax-free growth potential, which can significantly enhance your retirement savings over time. The key to maximizing this benefit is making informed investment choices that… 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?
Roth IRAs are a popular retirement savings option due to their tax-free growth and tax-free withdrawals in retirement. However, these benefits come with certain eligibility requirements, including income limits. If you find yourself exceeding the Roth IRA income limit, you might wonder what your options are. Fortunately, there are strategies to consider that can help… 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 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 from… 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…
- We’re 64 Years Old With $750k in an IRA and Social Security. Is It Too Late to Convert to a Roth IRA?
If you’re nearing retirement and you have a sizeable IRA balance, you face some significant decisions surrounding required withdrawals and taxes. Converting a traditional IRA into a Roth account is one move that can increase your planning flexibility. And even at 64 years old, shifting an account from a tax-deferred to tax-free status can result… read more…
- I’m 60 With $1.5 Million in an IRA. How Do I Make Sure This Money Lasts the Rest of My Life?
Making your savings last through retirement can be complex in practice, but all it really comes down to is your income vs. spending. In other words, you need to compare how much your portfolio can generate in a more risk-averse time in your life against how much it costs each year to maintain your lifestyle.… read more…
- I Want to Roll Over $720k to a Roth IRA. How Do I Avoid Paying Taxes?
Taxes are a valid concern if you want to roll over $720,000 from your retirement fund into a Roth IRA. While you won’t pay any taxes if the assets you’re rolling over are held in another Roth account, there’s typically no way to completely avoid paying taxes when rolling pre-tax money into a Roth IRA.… read more…
- I’m 65 Years Old With $1.2 Million in an IRA. I’m Taking Social Security – Is It Too Late to Convert to a Roth IRA?
Imagine you’re 65 with $1.2 million in an IRA and a lingering question: should you convert your account into a Roth IRA? The answer may depend on how you go about it. A Roth conversion can provide some sizable advantages, including tax-free withdrawals and freedom from mandated distributions – but that doesn’t mean it’s always… read more…
- We’re 63, Have $1.5 Million in IRAs and Will Receive $4,500 Monthly From Social Security. What’s Our Retirement Budget?
As you make your retirement budget, it’s important to keep two issues in mind. First, understand your needs — what budget will you need to pay your bills, and what budget will you want to afford your lifestyle? And second, understand your capacity — what income can your portfolio comfortably and reliably generate for you? … read more…