Choosing between Roth and pre-tax contributions for retirement savings depends on how each impacts your taxes now and in retirement. Roth contributions are made with after-tax dollars, so both ...

There's no one right age to convert a traditional IRA to a Roth IRA, but there are some advantages to consider when it comes ...

Compare that with a Roth account, where contributions are taxed when they are made. While you don’t get an immediate tax break, when the money is ready to be used in retirement, it will be ...

The Roth IRA, with its tax-free growth and withdrawals, has empowered countless individuals to build wealth for retirement, offering flexibility and no required minimum distributions. However, it’s ...

There is a particular psychological comfort to knowing that your Roth IRA is entirely yours. Money in a pre-tax 401(k) or other tax-deferred retirement plan grows tax-deferred but will be subject ...

Considering the example above, the client can rollover the $10,000 in after-tax amounts to a Roth IRA and the $40,000 in pre-tax amounts to a traditional IRA.

Similarly, you are also already making your full pre-tax or Roth contributions. Again, the mega backdoor Roth allows you to contribute $70,000 into tax-advantaged retirement accounts well beyond ...

The Confusion Around After-Tax Contributions. Carol explained that she had rolled a 401(k) from a former job into a traditional IRA. Later, she began contributing to that IRA with after-tax money ...

Because you first deposited money into a Roth in 2012, you needn't wait five years to take money from your second Roth for the earnings to be tax-free, provided you are at least age 59½. 2.

In states like Massachusetts or California, where an additional tax is imposed on income exceeding $1 million, larger Roth conversions may trigger this additional tax,” he said.

Before SECURE Act 2.0, only pre-tax contributions were permitted. Required Minimum Distributions Starting in 2024, Roth 401(k)s will no longer have RMDs, giving retirees more flexibility in their ...

Roth tax benefits. Roth IRAs are popular ... Prior to 2022's SECURE 2.0 Act, those matching contributions had to be made with pre-tax dollars, as if they were part of a regular 401(k) plan.