A Roth IRA Conversion Sounds Smart, but Is It Right for Your 401(k)?

Earn too much for a Roth IRA? Consider the backdoor approach

Who doesn’t appreciate tax-free investment growth, tax-free withdrawals and not having to take required minimum distributions from their retirement account?

A Roth IRA Conversion Sounds Smart, but Is It Right for Your 401(k)?

Key Points Rolling a traditional 401(k) into a Roth IRA triggers immediate taxes on the full conversion amount. Roth IRAs offer tax-free growth and withdrawals with no required minimum distributions during the owner’s lifetime. Spreading conversions across multiple years can prevent jumping into higher tax brackets. If you’re focused on picking the right stocks and ETFs you may be missing the bigger picture: retirement income. That is exactl…

Roth Conversions After 60: What the New Tax Law Means for You

For the last few years, it felt like someone was always talking about Roth conversions. Whether it was finance shows on TV, newsletters, or seminars, this message was a constant: “Convert now while tax rates are low. Time is running out!” This was likely motivated by the Tax Cuts and Jobs Act of 2017 (TCJA), which made many changes to our tax system, including lowering federal income tax brackets. But since these tax cuts were scheduled to end o…

Roth Conversions After 60: What the New Tax Law Means for You

For the last few years, it felt like someone was always talking about Roth conversions. Whether it was finance shows on TV, newsletters, or seminars, this message was a constant: “Convert now while tax rates are low. Time is running out!” This was likely motivated by the Tax Cuts and Jobs Act of 2017 (TCJA), which made many changes to our tax system, including lowering federal income tax brackets. But since these tax cuts were scheduled to end o…