- If I Convert $235k to a Roth IRA, Will It Affect My Medicare Premiums?
Because Medicare premiums are tied to income, converting a $235,000 retirement account to a Roth IRA has the potential to cause Medicare Part B premiums to increase. For many taxpayers, in fact, a single-year conversion of that magnitude could more than triple the amount of the monthly premium most Medicare enrollees pay for Part B… read more…
- What’s a Realistic Retirement Budget? I’m 55 With $490k Saved, Making $80,000 Annually.
Your mid-fifties is a good time to do a retirement check. To be clear, you should always have at least one eye on retirement. This isn’t something to ever forget entirely. But most of the time, that means nothing more than making sure your annual contributions go through in-full, on-time and to the right places,… read more…
- I Want to Retire in 4 Years. Should I Convert 25% of My 401(k) to a Roth IRA Until Then to Avoid RMDs and Taxes?
Transferring some of your retirement savings from a tax-deferred account like a 401(k) to a Roth IRA can help you reduce or possibly avoid required minimum distributions (RMDs) and income taxes later on. It can also be beneficial if you want to leave tax-free savings to your heirs. A Roth conversion can therefore provide you… read more…
- I Want to Convert My $640,000 401(k) to a Roth IRA. Will It Affect My Medicare Premiums?
A Roth conversion can cause your Medicare premiums to surge. That’s the bad news. The good news is that this surge will be temporary, depending on your future income. The better news is that you can manage it, if you want to. Although for large conversions, you may want to accept the one-time increase. For… read more…
- Is a Thrift Savings Plan (TSP) a Qualified Retirement Plan?
A thrift savings plan (TSP) is a retirement savings program specifically designed for federal employees and members of the military. TSPs are considered qualified retirement plans, and this status affects aspects like tax benefits, employer contributions and protections under federal law. Qualified retirement plans must meet certain standards set by the IRS and are typically… read more…
- I’m in a Lower Tax Bracket Than I Was Last Year — Is This the Ideal Time for a Roth Conversion?
It is often advisable to convert funds from an IRA or similar tax-deferred retirement account to Roth in a year when you are in a lower tax bracket in order to save money in the short-term. Having said that, there are other considerations. Many people like the idea of transferring IRA funds to Roth accounts… read more…
- Will a Roth Conversion Impact My Taxes on My $2,800 Monthly Social Security Benefit?
Taxes are generally a concern when transferring funds from a tax-deferred retirement account to a Roth account. Converted funds are treated as taxable current income in the given year, which can push a taxpayer into a higher tax bracket and result in a sizable one-time tax bill. If you are receiving Social Security benefits, this… read more…
- I’m a 46 Year Old Divorced Dad. I Have $460k in My 401(k) and Contribute the Maximum. Can I Retire in 10 Years?
Early retirement is an ambitious goal. Reaching it isn’t just about making sure that you have the money saved up. It’s also about making sure you address the potential risks, changes and needs that can come along in your 40s and 50s, because most people will have more obligations in their mid-life than they will… read more…
- I Have $850k in My 401(k). What Should I Do With It When I Retire?
For households with very little saved, there is a rulebook. A tight retirement requires you to restructure your spending, maximize Social Security and delay withdrawals as late as possible. For households with significant savings, there’s another set of rules. You want to manage your wealth, plan for your estate and minimize taxes. With $850,000 in… read more…
- RMDs Are Due December 31. What Happens If I Don’t Take a Distribution?
In almost all cases the IRS enforces its rules through fines and penalties. This is the case of Required Minimum Distributions (RMDs). As always, your RMDs are due by the end of the year. In this year, if you don’t take out the minimum distributions by December 31, 2024, the IRS will penalize you with… read more…
- I’m 60 With $750k in my 401(k). Should I Convert $75,000 per Year to Avoid RMDs in Retirement?
Many retirement savers with sizable tax-deferred accounts like a 401(k) are interested in converting those funds to Roth accounts so they can escape having to pay Required Minimum Distributions (RMDs) and the associated taxes after they retire. It’s not always the right move, in part because of the hefty upfront tax bill on conversions. However,… read more…
- Social Security to Increase by 2.5% for 2025: What Retirees Should Know
Inflation has more or less finally been tamed. That’s the main takeaway from Social Security’s 2025 cost-of-living adjustment, announced by the Social Security Administration earlier this month. A financial advisor can help you build an income plan for retirement and decide when to claim Social Security. Find an advisor today. Every year the SSA adjusts… read more…
- Should I Take a $78,000 Lump Sum or $650 Monthly Annuity Payments?
When faced with the decision of taking a lump sum pension payout or receiving monthly annuity payments, your course of action will depend on your individual circumstances. Key factors include your life expectancy, others sources of income and how soon you will be paid the lump sum. Speak with a financial advisor before making significant… read more…
- Typical Options for Pension Payout and How to Choose One
If you participate in a pension plan through your workplace, you’ll have to decide how you want to receive the payout when you retire. Pension plans typically offer two disbursement options: an annuity, which provides steady payments over time, or a lump-sum payment. Each option has its pros and cons, and the best choice will… read more…
- Can You Roll Over Your 401(k) When You Get a New Job?
You can move your 401(k) to another company when you get a new job. In the event of a job change or termination, you typically have several options for managing your old 401(k): leave it with your previous employer, transfer it to your new employer’s plan, or roll it into an IRA. A 401(k) to… read more…
- I’m 61 With $1.4 Million in My 401(k). Should I Convert $120k Per Year to Avoid RMDs?
Converting retirement savings held in a 401(k) to a Roth account can help you reduce or even avoid mandatory withdrawals while giving your more tax planning flexibility. Roth conversions can be particularly helpful if you expect to be in a higher tax bracket in retirement. Talk over your retirement plans with a financial advisor any… read more…
- 4 Investment Options to Help You Build Your Retirement Income
Part of planning for a secure retirement is crafting a reliable income stream that can support your lifestyle once you stop working. There are a variety of investment options that can help you grow your savings and generate income throughout retirement. Each choice offers specific benefits, risks, costs and limitations. The key is to find… read more…
- Will Converting $100k to a Roth IRA Affect My Medicare Premiums?
Converting money from a tax-deferred retirement account to a Roth IRA can cause Medicare premiums for Part B and Part D to increase – in some cases dramatically – because Medicare premiums are tied to income brackets. When retirement funds are transferred to a Roth account, the converted amount is treated as income. If the… read more…
- Should I Take a $500,000 Lump Sum or $3,500 Monthly Payments for My Pension?
Deciding between a $500,000 lump sum or $3,500 monthly annuity payments for your pension isn’t straightforward and involves weighing several personal factors. You need to consider how long you might live, which impacts how much total money you’ll get from monthly payments, alongside your retirement age to see how long your funds need to last.… read more…
- How to Avoid Lifestyle Creep When Working and in Retirement
Lifestyle creep happens when your spending increases gradually as your income grows. It’s important to recognize the difference between necessary expenses and discretionary spending when you’re working or saving for retirement. Tracking your budget closely and setting financial goals are common strategies used to curb lifestyle creep. Regularly consulting a financial advisor and accounting for… read more…
- I’m 62 With $1.6 Million in an IRA and a $2,800 per Month Social Security. What’s My Retirement Budget?
A budget by definition includes both income and expenses. The two halves of a budget are interdependent, so that if expenses go up, income must also rise. Otherwise, the budget won’t balance. Someone ready to retire at 62 with $1.6 million in an IRA and $2,800 in monthly Social Security benefits could start with an… read more…
- Is It Wise to Convert 15% of My 401(k) Into a Roth IRA Each Year to Avoid Taxes and RMDs?
Converting retirement funds from a 401(k) into a Roth IRA offers the opportunity for tax-free growth and tax-free withdrawals in retirement, while also avoiding Required Minimum Distribution (RMD) rules. However, Roth conversion requires paying a significant tax bill up front. Often, this initial tax bill can be partially mitigated by gradually converting the 401(k) over… read more…
- How Deferred Compensation Works in South Carolina
South Carolina offers a deferred compensation program that allows public-sector employees to set aside a portion of their income to be paid out at a later date, typically during retirement. Contributions are often made pre-tax, which can lower current taxable income and provide potential tax benefits. Teachers, government workers, and other public employees can use… read more…
- Roth IRA Rules for Living Abroad
Americans living abroad can still benefit from a Roth IRA for retirement savings, just like those in the U.S., but there are some extra considerations. Both expatriates and U.S.-based savers need earned income to contribute, but foreign income exclusions may affect eligibility for those living overseas. Expatriates should also be aware of how foreign tax… read more…
- What Is the Retirement Age in Ohio?
In Ohio, the retirement age follows federal guidelines, typically ranging from 65 to 67 based on the year of birth for non-government employees. Teachers and state workers may have different retirement age requirements due to their specific pension plans. A financial advisor can help you with your retirement plan options and create a personalized strategy… read more…