- What Should I Do With My 403(b) Once I Retire?
If you have an employer-sponsored retirement plan, like a 403(b), leaving your job means you’ll need to decide what to do with your account. When retiring, you have three main options: You can retain your old 403(b) if the plan allows it, roll your money over into an IRA or a Roth IRA, o4 withdraw… read more…
- I’m 60 With $1.1 Million in an IRA. Is It Worth Converting $100,000 Per Year to a Roth to Avoid RMDs?
Required minimum distributions, or RMDs, are a problem for some retirees. If that’s your situation, a Roth conversion may be able to help. The advantage to switching your money from a pre-tax portfolio, like a traditional IRA, to a post-tax Roth IRA is an end to RMD concerns. Since you’ve already paid taxes on the… read more…
- I’m Getting Divorced This Year at 55 With $800k in a 401(k). How Do I Protect My Finances?
Like all family and property law, divorce is a highly state-specific process. How you will handle a divorce and protect your assets, and what constitutes individual vs. shared assets, will depend entirely on your jurisdiction. As a result, how retirement accounts are treated during divorce proceeds can vary widely from state to state. If you… read more…
- I’m 75 With $900,000 in an IRA. How Do I Make Sure This Money Lasts the Rest of My Life?
Ensuring that your retirement savings last the rest of your life often requires balancing income with expenses over your projected lifespan. But suppose you have $900,000 in an IRA. You’d also want to consider whether you want to leave behind a financial legacy. And since all long-range forecasts are subject to change, you’d need to… read more…
- What Is a Mega Backdoor Roth Conversion?
Retirement savers typically use a mega backdoor Roth conversion, in addition to a backdoor Roth 401k, when they have already maximized their contributions and want to continue saving for retirement beyond those annual limits. With a backdoor Roth 401(k), you will pay taxes upfront on contributions with the goal of making tax-free withdrawals in retirement. And… read more…
- I Have a 401(k) From a Previous Employer. What Should I Do With It?
If you’ve changed jobs recently, don’t put off deciding what to do with your 401(k) for too long. While you have several options for your account when you leave a job, there’s an estimated 29.2 million 401(k)s that have been left behind with former employers, according to a 2023 analysis from Capitalize. Those accounts hold… read more…
- I’m 66, Taking Social Security, and Have $745,000 in a 401(k). Is It Too Late to Convert to a Roth IRA?
Legally, it’s never too late to make a Roth conversion. The IRS will let you move qualifying funds at any time as long as you can pay the resulting tax bill. For those in or near retirement, the bigger question is whether it’s a wise call to make a Roth conversion. On the one hand,… read more…
- We Have $1.4 Million in IRAs and Fully Own a $750k Home. Can We Retire in 2 Years at 60?
Retiring early can be tricky, even if you have considerable home equity. Say for example that you’re married with $1.4 million in your IRAs and a home worth $750,000. Retiring early could well be within reach, but you may face be a few big challenges. Retiring at age 60 means having to wait several years… read more…
- How 401(k) Loans Impact Your Taxes
While borrowing from your 401(k) account can hurt your long-term retirement planning, that’s not the only consideration. There are also tax implications if you’re not able to repay the funds in a timely manner. Here’s what you need to know before taking out a 401(k) loan, and how it could impact your retirement nest egg.… read more…
- I Have $845k in a Traditional IRA. How Can I Reduce Taxes When Converting to a Roth?
There’s no way to entirely avoid paying income taxes when you convert a traditional IRA into a Roth account. However, with smart financial planning you can reduce the impact of those taxes. A financial advisor can help you roll over your retirement savings into a Roth IRA and manage your investments. Connect with a fiduciary… read more…
- What Are Safe Retirement Withdrawal Rates?
Planning for retirement is a crucial aspect of financial stability, and understanding safe retirement withdrawal rates is a key component of this process. As you transition from accumulating wealth to drawing from your savings, determining how much you can safely withdraw each year without depleting your nest egg is essential. This concept, often referred to… read more…
- 8 Retirement Planning Tips for 2025
Planning for retirement has a new look in 2025, thanks to changes brought about by Congress. Retirement savers this year will find fresh things to consider when it comes to rainy day savings, 401(k) contribution limits for older workers, rules on mandatory withdrawals for Roth 401(k) plans and student loan payment matches. At the same… read more…
- I’m 65 With $850,000 in an IRA. Is It Worth It to Convert That Money to a Roth to Avoid RMDs?
Required minimum distributions (RMDs) from pre-tax retirement accounts can have a number of unintended consequences. These mandatory withdrawals can push you into a higher tax bracket, reduce your investment flexibility, increase your Medicare premiums and result in more of your Social Security benefits being taxed. If you’re planning to convert IRA funds to a Roth… read more…
- Our Combined Income Will Top $400k This Year. Can We Use a Backdoor Roth to Avoid Future Taxes?
A backdoor Roth conversion can save you significantly in future taxes, but at the cost of paying those taxes now. This isn’t always a good deal in the long run. If you’re considering a backdoor Roth IRA or other strategies to save on taxes, consider talking it over with a financial advisor. For example, perhaps… read more…
- This Is My First Year Taking RMDs. What Should I Do With the Money If I Don’t Need It Yet?
Anyone with a 401(k), traditional IRA or similar tax-deferred retirement account eventually is going to face the requirement to start taking required minimum distributions (RMDs) from their accounts. The IRS has allowed you to have what can be decades of tax-free growth in the account, along with years of tax deductions, so they eventually requiring… read more…
- How to Save Money on a Tight Budget in Retirement
Retirement is a time to enjoy what you love most, from family and friends to traveling and gardening. However, affording your desired lifestyle isn’t automatic, even if you have a healthy retirement account and consistent Social Security checks. When you retire, you end up with a fixed income. Here are eight common ways you can… read more…
- What Is a Conduit IRA?
A conduit IRA is a strategic financial instrument that provides a bridge for individuals transitioning between jobs, freelance work, or other employment changes. This specialized investment account allows for the transfer of funds from qualified retirement plans, such as 401(k)s and 403(b)s, safeguarding individuals from potential tax repercussions associated with delayed reinvestment. By offering a… read more…
- I’m 68 With $950k in an IRA. How Do I Make Sure It Lasts My Whole Life?
Longevity risk is at the heart of retirement planning. You wind down work and income, counting on savings to carry you through the rest of your life. But with careful saving and money management, it might be possible to make this money last. For example, say that you recently reached retirement age at 68 and have… read more…
- What Are the Exceptions to the IRA Early Withdrawal Penalty?
Individual retirement accounts (IRAs) are tax-advantaged savings vehicles designed to help Americans save money for retirement. While there are tax benefits associated with IRAs, withdrawing money before age 59 ½ can trigger income taxes and a 10% early withdrawal penalty. However, the IRS makes several exceptions to this rule. If you need to withdraw money… read more…
- We’re in Our Late 50s With $1.6 Million in Our 401(k)s. Should We Switch to Roth Contributions?
A Roth IRA offers significant benefits for retirees. As an after-tax account, distributions from Roth IRAs are typically tax-free. This can save you a lot of money in retirement, but at the cost of up-front tax payments while you’re saving. You will spend more to build your portfolio today, but will save money later. A… read more…
- How an ESOP to IRA Rollover Works
An ESOP (Employee Stock Ownership Plan) is a qualified retirement plan that allows employees to become partial owners of the company they work for by acquiring shares of its stock. If you own an ESOP, you may be thinking about transferring it to an IRA, especially if you’re looking for greater flexibility, diversification, or to… read more…
- How Much Money Most People Have Saved By Age 60
According to The Federal Reserve, the median retirement account savings for households between ages 55 and 64 is roughly $185,000. While this is a considerable amount of money, it’s probably not enough to secure a comfortable retirement for most people. A standard household making the median income will likely want between $415,000 and $825,000 in assets… read more…
- I Have $850,000 in an IRA and Would Receive $2,800 Monthly from Social Security. Can I Retire at 65?
For many retirees, prudent withdrawals from a wisely invested portfolio combined with Social Security benefits can provide a consistent income to support their spending needs. But what if you had $850,000 in an IRA and $2,800 in monthly Social Security benefits: would that be enough to retire at 65? To answer this question, you’d have… read more…
- I’m Going to Get $3,000 Per Month From Social Security. How Can I Reduce My Taxes?
When determining your income taxes in retirement and on your Social Security benefits, the IRS uses your “combined income” and filing status as the two main markers. At $36,000 a year from Social Security, none of your benefits would be taxable, since only half of your benefits are calculated into combined income. However most, if… read more…
- FIRE Blogs and Websites You Need to Know
The Financial Independence Retire Early (FIRE) movement has been gaining steam in recent years as more Americans look for ways to take control of their money and retire well before the traditional retirement age. With FIRE, the goal is to aggressively save and invest enough to be able to quit your regular job and maintain… read more…