Roth IRA

Why Millennials Need Roth IRAs

If 20-somethings ask me what to do to get ahead financially, I have a laundry list: create a budget, start investing now, be smart about your taxes and so on. If I absolutely have to narrow it down to one thing, I’d say, open up a Roth individual retirement account.

Why Switch to a Roth 401(k)?

Beginning in 2013, you could roll over all your standard 401(k) funds to a Roth account in the same retirement plan. But such a move may not be good for you. While the upside of a Roth is tax-free money in the future, converting creates an extra tax burden today.

Rules for a Roth 401(k)

If your employer sponsors a 401(k) plan for you to participate in, you may also have a Roth 401(k) option. Electing that option depends on your other retirement plans, tax outlook and many other factors.

Traditional or Roth IRA?

Saving for retirement means you must sort out countless and confusing options from 401(k)s to individual retirement accounts. How much you make and whether you’re self-employed or have a company-sponsored retirement plan are just a few criteria to determine which to chose. One of your first questions: What’s the difference between a traditional IRA and a Roth IRA?

Many clients at our firm ask this when looking to maximize retirement savings. To understand which option may be better, let’s look at the differences and nuances between the two types of accounts.

Tax Hit Converting to a Roth

Turning your individual retirement account into a Roth IRA can seem great. Pull the trigger too quickly, though, and you may owe cash to the taxman.

Young Adults, Go With Roth

For the young, Roth accounts are very smart ways to save money for retirement. That’s because they pay taxes on the contributed money up front, when their income is low, and can enjoy that money later without the Internal Revenue Service taking another slice. Traditional accounts defer taxes until retirement, when folks usually are in a much higher tax bracket than they were when starting out in life.

Proposed Budget’s IRA Impact

The proposed U.S. 2015 budget contains, predictably from President Barack Obama, tax breaks for working families and curtained breaks for the rich. The nearly $4 trillion budget proposal also seeks potential changes, good and bad, to your individual retirement accounts.

How to Maximize Retirement $

Your quality of life in your last years depends on your retirement savings, such as your 401(k). Such plans give you the best means to bringing you the wealth you will need. But many investors haven’t a clue how to navigate them.

Your 401(k) or other retirement plan from your employer is your most valuable retirement savings resource – if not your only one. To make use of these tax- advantaged plans to save for your golden years:

The New Military Benefits

If you are military, either part time or fulltime, a grateful nation has set up tax, pension and other benefits to help you. You should know about changes and improvements that occurred in some of them.

What’s the Point of myRAs?

President Barack Obama’s State of the Union address included announcement of the new, supposedly easier retirement savings plans, or “my Retirement Accounts” (myRAs). Do we need them? No.

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