Tag: Roth IRA

Wondering if you should convert your tax-deferred retirement savings to a Roth? Here’s what to consider | CNN Business

~ knjohn ~ Leave a comment

Having financial flexibility in retirement — especially in being able to maximize your spending while minimizing your taxes — is an optimal situation.

And it’s one you can arrange by keeping at least some of your retirement savings in a tax-free account.

“You’re giving yourself more options in the future,” said Brian Kearns, an Illinois-based certified public accountant and certified financial planner.

One way to do that is to convert at least some of your tax-deferred savings in your 401(k) or traditional IRA into a Roth account. Money rolled into Roth 401(k)s and Roth IRAs grow tax free and may be withdrawn tax-free so long as you leave it in the account for at least five years after the rollover.

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Roth IRAs and the Fear of Future Legislation | The Simple Dollar

~ knjohn ~ Leave a comment

When people realize how incredible the deal is for a Roth IRA, they’re often in disbelief. After all, it lets you earn tax-free income in retirement. No federal income taxes, period, on money taken out of a Roth IRA when you’re at retirement age (and at a few other life opportunities, too).

Before we head too far down this road, let’s touch on what a Roth IRA is. I spelled it out in my earlier Roth IRA basics article, but here are the key things you need to know:

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