Submitted by Sophia Bera on Thu, 09/19/2013 - 12:00pm
The further the goal, the harder for us to see it. Retirement seems distant indeed to many investors and savers, especially young adults just beginning lifetimes of perhaps record length. Procrastinating and even assuming, as the young sometimes do, that you’ll never need retirement money threatens your future.
Submitted by Matthew Illian on Wed, 07/03/2013 - 9:00am
The Roth individual retirement account gives savers tax-free retirement income and even provides a good place for emergency savings. But in ways a lot of people don’t know, it is even more versatile than that.
Mr. Roth can also help with transferring gifts to your heirs, accessing other accounts and paying for a new house or college expenses, as well. It saves money on taxes and even makes it harder to squander an inheritance.
Submitted by Matthew Illian on Wed, 06/26/2013 - 12:00pm
The Roth individual retirement account is like a superhero of savings vehicles. Nothing else can offer savers more support and flexibility with their retirement savings.
Mr. Roth, like Superman, is great at all sorts of things, while others such as traditional IRAs only do one thing well, like Aquaman. Roths provide tax-free growth, freedom from future taxes and penalty-free emergency withdrawals.
Submitted by Sterling Raskie on Fri, 05/24/2013 - 12:00pm
Do you live in a state that doesn’t tax retirement income? Then you save on taxes if you fund your 401(k) or other employer-sponsored plan instead of a Roth individual retirement account. If you plan on relocating when you quit working, look at how your new home state treats retiree income.
Submitted by Hilary Martin on Mon, 05/20/2013 - 12:00pm
Congress recently made it easier to convert to a Roth individual retirement account. But unless your tax rate increases in retirement, converting your traditional IRA to a Roth IRA may not actually save you any money.
Roths are popular because, unlike traditional IRAs, distributions in retirement are tax-free. In other retirement plans, the initial contribution is tax-deferred, and the distributions are treated as ordinary income. So when you convert to a Roth, you opt to pay taxes now rather than later. Our cash-strapped government is in favor of that.
Submitted by Roger Hewins on Thu, 04/18/2013 - 9:00am
When deciding whether to convert a 401(k) or individual retirement account to a Roth IRA, think of your tax bill as a special sort of debt. When you view it this way, it makes more sense in many cases to do a Roth conversion as soon as possible.
For many of us, the prospect of converting a large IRA or 401(k) balance to Roth is a little daunting because it means footing the bill for the unpaid tax in the account –immediately. Because the taxes come in one massive chunk, it seems worse than paying Uncle Sam a cut out of your IRA distributions when you eventually retire.
Submitted by David Marotta a... on Wed, 04/17/2013 - 9:00am
Cyprus’ recent banking crisis shows how easily government can erode your bank deposits. In Cyprus, it is through outright confiscation. In the U.S., it is through low interest rates and inflation. But there are ways for Americans to offset this problem.
Submitted by Ara Oghoorian on Mon, 04/08/2013 - 9:00am
If you have a Roth IRA and an employer-based retirement plan, such as a 401(k), which do you fund first if you cannot give the maximum allowable contribution to them all? With some exceptions, the answer is usually the Roth IRA.