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Untangle Retirement Taxes

Submitted by Eric Meermann on Thursday, November 13, 2014 - 12:00pm

When the Internal Revenue Service leaves a situation vague, sometimes you must guess at the answer to a tax question. The IRS recently issued a clear ruling, though, on a powerful contribution strategy that may change how you use your employer’s retirement plan.

Converting to a Roth IRA

Submitted by Jeff Rose on Monday, November 10, 2014 - 3:00pm

Turning your individual retirement account into a Roth IRA is not a totally black-and-white decision. Understand the rules first, especially relevant tax laws.

Traditional IRAs are largely based on income tax deferral, which means you get a tax break on your contributions in the current year. In retirement, your withdrawals incur income tax.

Make Your Money Last (Pt. 1)

Submitted by Jeff Rose on Tuesday, October 14, 2014 - 12:00pm

You retire and don’t even own an alarm clock anymore. Then it hits you: Can you really afford this lifestyle? Did you save enough and invest right? How long will your money last?

This first of two articles presents strategies to ease your worry about outliving your savings.

Plan a bigger portfolio than you think you’ll need. When planning for retirement, never imagine you’re going to get off easy. Think the opposite.

Why Millennials Need Roth IRAs

Submitted by Grant Webster on Monday, August 18, 2014 - 12:00pm

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)?

Submitted by Jim Blankenship on Friday, August 15, 2014 - 12:00pm

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)

Submitted by Jim Blankenship on Monday, August 11, 2014 - 12:00pm

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?

Submitted by Travis Russell on Thursday, August 7, 2014 - 3:00pm

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.

Young Adults, Go With Roth

Submitted by Joseph A. Clark on Thursday, June 5, 2014 - 3:00pm

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.

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