FREE Guide at: 👉 – Get help with retirement income,wealth management,annuities,investments,401k rollovers,asset protection,tax efficient strategies,IRA, roth IRA, legacy planning, and more.

Need help? Contact me at: barb@sffinancialservices.com or at (719) 597-2179

🕒 In This Video:
Roth IRAs are funded with money that you’ve already paid tax on, and then they grow tax-free. This is different than traditional pre-tax funded retirement accounts.

Roth IRAs offer many advantages that other traditional retirement accounts don’t.

First, you can withdraw your money tax-free during retirement, which allows you to manage your taxable income. And second, with no annual distribution rules, you’re free to take your money out only when you want to.

There are two ways to put your funds into a Roth IRA; through contributions and conversions.

Contribution rules include contribution limits. For several years the annual limits have remained at five thousand five hundred dollars, or six thousand five hundred dollars if you’re over 50. And to contribute money to a Roth IRA, you must earn compensation, or income, but remain below IRS mandated income levels. High earners can’t contribute.

Conversions have very few limitations. Anyone can convert an account such as an IRA, 401(k) or SEP IRA into a Roth IRA. You don’t need to have income, but if you do, there’s no income limit and there are no restrictions on the size of the conversion.
You can convert one million dollars if you like! You will, however, owe income tax on any amount that you convert, so conversions should be scheduled when your tax rate is lowest.

To learn more about Roth conversions and contributions, give us a call today.

💻RESOURCES MENTIONED IN THIS EPISODE:

▸

▸

📌 Want even more retirement planning tips? Subscribe to This Channel:

📖 Get the best-selling book on retirement planning, ‘Retire Financially Fit’, and other helpful white papers:

ABOUT BARB SWIATEK
===================

For more than a decade, financial advisor Barbara Swiatek has been helping hundreds of families in the Colorado Springs region to get out of debt, plan for the out-of-pocket expenses of their children’s college education, and prepare for their retirement using well-defined and personalized strategies.

Barb is known as the author of the book, “Retire Financially Fit” and she’s also the radio host of “Retire Financially Fit”:

As a result of her experience and observations, the “Safety First” motto is the driving force behind each personalized retirement strategy Barbara prepares for her clients as their retirement consultant. She is passionate about retirement planning because she witnessed firsthand when many people were forced to go back to work, change their lifestyle and/or delay retirement as a result of losing their retirement funds in the stock market in 2001 and 2008. Barbara made it her mission to inform as many individuals as she can how to strategically prepare and invest for each stage of their lives.

A fiduciary and Investment Adviser Representative licensed in all states across the U.S., Barbara is also licensed in Colorado for life, health, and long-term care insurance. In her role as a financial advisor and retirement consultant, Barbara also is a community educator. She hosts public workshops on personal finance and retirement planning throughout Colorado Springs and, through her workshop events, brings her knowledge and experience to those seeking sound and predictable strategies in preparing for financial milestones and retirement.

An entrepreneur by nature, Barbara originally founded the firm in 2005 as a mortgage brokerage. She quickly recognized the huge need for college planning services for parents struggling to pay for rising college tuition costs. College Planning of Colorado, a sister endeavor to SF Financial Services, was the result and still provides help to families who need it. Now, SF Financial has found its niche focusing on retirement planning under Barbara’s leadership.

Barbara and her husband have been married for 40 years, and have five children and six grandchildren. They love the outdoors, family gatherings, Colorado mountain views, camping and skiing.

✉️ Business inquiries: info@sffinancialservices.com
🖥️ Website:
📞 Phone: (719) 597-2179
__________

👉🏻 Did you enjoy this video? Please share your thoughts and opinions in the comments below – we love hearing from you! Also, I appreciate it when you share these videos with your friends and colleagues interested in effective retirement planning.

#retirementplanning #certifiedfinancialplanner #financialindependence #wealthplanning…(read more)

LEARN MORE ABOUT: IRA Accounts

CONVERT IRA TO GOLD: Gold IRA Account

CONVERT IRA TO SILVER: Silver IRA Account

REVEALED: Best Gold Backed IRA

Backdoor Roth IRA is a unique and popular investment strategy used by several financial experts. This strategy is particularly useful for high earners looking to grow their retirement savings while taking advantage of the tax benefits offered by a Roth IRA.

For those who are not familiar with the Backdoor Roth IRA, it is a process through which the taxpayer contributes to a Traditional IRA and then converts it into a Roth IRA. This strategy is particularly useful for individuals whose income exceeds the IRS limits for direct contributions to a Roth IRA.

As a high earner, you will need to choose between contributing to a Backdoor Roth IRA or converting an existing Traditional IRA into a Roth IRA. Both strategies have their advantages and disadvantages.

Contributing to a Backdoor Roth IRA:

Contributing to a Backdoor Roth IRA involves contributing to a Traditional IRA and then converting it into a Roth IRA. This strategy is particularly useful if you do not have an existing Traditional IRA as there is no tax liability on the conversion. Furthermore, you can contribute to a Traditional IRA regardless of your income, unlike the Roth IRA which is subject to IRS income limits. However, you may still be taxed on any gains earned on the Traditional IRA contributions as they grow tax-deferred until the conversion.

Converting an existing Traditional IRA into a Roth IRA:

Converting an existing Traditional IRA into a Roth IRA is a popular strategy because it allows you to take advantage of Roth IRA’s tax-free withdrawals in retirement. However, the conversion process incurs taxes on the converted amount. Therefore, if you convert a significant amount of your Traditional IRA in one go, it might push you to a higher tax bracket resulting in higher tax liability. Additionally, this strategy does not work if you have an outstanding balance on a Traditional IRA due to the pro-rata rule. This rule requires you to include both pre-tax and after-tax contributions while converting the Traditional IRA into a Roth IRA.

Conclusion:

As with any investment strategy, there is no one-size-fits-all solution when it comes to Backdoor Roth IRA. It is in your best interest to consult a financial expert to analyze your tax situation and your retirement goals to see which strategy best suits your needs. That being said, regardless of which strategy you choose, the Backdoor Roth IRA is a useful tool for high earners looking to maximize their retirement savings while reducing their tax liability.