IRA

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 …

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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 …

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