Are you Content With Your Retirement Income?
There are ways to secure retirement income that allows you to maintain your living standard, live a lifetime, adapt to life events, and leave a legacy for your children even in difficult times.
IRA
No 401(k) No Problem, Here is how to Retire Comfortably Without One
There is no reason for alarm if you do not have access to a 401(k). However, you will need funds to supplement your Social Security benefit to retire comfortably unless you are one of the lucky few who are incredibly wealthy.
How to Strategically Avoid RMDs: Converting a $1.5 Million IRA into a Roth Account at 62
Atlanta, Georgia – A 62-year-old individual who has amassed $1.5 million in a traditional IRA may be considering the option of converting $150,000 per year into a Roth IRA in order to avoid required minimum distributions (RMDs), which are mandated annual withdrawals that can increase taxes in retirement. RMDs are required by the IRS from IRAs, 401(k)s, and other tax-deferred retirement accounts, typically starting at the age of 73. However, strategic Roth conversions can help …
IRS Announces New Contribution Limits for Retirement Plans in 2024
Inflation is excellent news for those saving for retirement. At least for individuals seeking to maximize their contributions to retirement accounts such as a 401(k), conventional IRA, or 403(b), the following strategies are recommended (b).
How Much Should Retirees Have in an Emergency Fund?
An emergency fund is vital regardless of age, but it can be very costly in retirement. By having an emergency fund, you won’t have to use your IRA, 401(k), or other taxable assets for unforeseen expenses. It can also assure that you will not need to seek employment elsewhere. The key to remaining within your retirement budget is estimating a sufficient amount for your emergency fund. It would be best to determine the appropriate account …
New IRS Rule Affects Required Minimum Distributions
The government knows Americans live longer than they did a decade ago, which will be reflected in the required withdrawal amounts from retirement funds at various ages beginning in 2022.
Retirement: Comparing the Pros and Cons of 401(k) vs. Roth IRA
New York, NY – When it comes to saving for retirement, there are several options to consider, including a 401(k) and a Roth IRA. Both have their pros and cons, and it’s essential to weigh them carefully before making a decision. One advantage of a 401(k) is that contributions are typically made pretax, reducing your taxable income for the year. This can result in significant tax savings, especially for those in higher tax brackets. Additionally, …
Roth IRA Strategy for Teens: Compound Growth Potential Vastly Benefits Early Savers
Chicago, Illinois – As teenagers start thinking about their future, many are considering opening Roth IRAs to kickstart their retirement savings early. Unlike traditional IRAs, Roth IRAs are funded with after-tax dollars, making them an appealing option for teens who have limited taxable income. With the standard deduction at $14,600 for single filers in 2024, teens may be able to contribute to a Roth IRA without owing taxes on their earnings. One key advantage of …
Naming a Trust as a Beneficiary
It is advantageous to name a trust as a beneficiary if your beneficiaries are minors, have disabilities, or cannot be trusted with large sums of money. To avoid future estate tax issues, some attorneys also recommend establishing a special trust as an IRA beneficiary to prevent its assets from becoming part of a surviving spouse’s estate.
Roth Conversion Concepts: How to Convert $1.2 Million IRA into Roth IRA at Age 65
Phoenix, Arizona – A 65-year-old individual in Phoenix, Arizona finds themselves with a $1.2 million IRA and is considering whether to convert it to a Roth IRA. This decision involves weighing the advantages of tax-free withdrawals and freedom from mandated distributions against the potential burden of a significant tax bill. While there are no age restrictions on Roth conversions, converting the entire $1.2 million at once could result in a hefty tax burden. However, opting …