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why not just roll it all into the Roth IRA at once ? what's the point of separating it into years
Stupid question: what if you don't have a 401K? Can you still participate in this method?
You guys think its a good time to do Roth conversations now with the market downturn?
If say I ladder $25k for 5 years, come year 6 can I withdraw less than $25k to optimize for taxes? Say I withdraw $20k year 6, does the extra $5k carry over and I could withdraw $30k in year 7 and so on?
But won't you run out of all your retirement money when you really need it later in life (60 years old plus) ? Because you retired from your job and started living off your nest egg early?. Assuming you live to 70-80 years old.
I would really appreciate if you would be willing to answer my question. I am trying to understand why a traditional IRA is needed for the conversion process? I have googled online, watched other videos, and many folks keep saying you can convert from 401k to Roth IRA, but no mention of traditional IRA OR if the traditional IRA is mentioned no explanation of why one must convert to it before converting to a Roth IRA.
Would really appreciate if anyone can link me to sources explaining this !
Oh My God! I Love You Guys! Your explanations and the examples you give for every situation is Priceless! I plan on retiring next year when I turn 56 (the earliest they will let me go) I I've never been so scared until now. I'll never be as wealthy as you guys, but with a good plan in place, I can live the Dream Retirement stress free! Can't wait! Keep sharing your bright ideas and hacks! I Love It!
When you move your money from 401k to traditional , how long are you supposed to wait or when do you know when to move it from traditional ira to the Roth IRA ??? Is there a penalty for moving it ??
Please answer
Thanks Amon and Christina! I am a new subscriber and I really like how you make the information easy to understand for a beginner.
You have to be eligible to open a ROTH outside your employer account. You have not addressed eligibility for creating a ROTH outside your employer account.
Hey guys, I don’t have a 401k, can this still apply if I contribute toward a traditional IRA then rollover to a Roth IRA?
I made After tax IRA contribution of 6K in 2021 and because of high income limit, I am not able to take deductions. Can I move this money into Roth IRA. What are the tax implications on this? WHt are the steps? Will you please explain this.
What if I never had a 401k and traditional ira and only started with roth ira, do I still wait 5 years? And stop investing in my roth ira for 5 years?
Brother man I have a question so I have Roth TSP so when I transfer to traditional Ira why should I pay taxes I already paid taxes ? I’m confused please advise.
Great video. Is there an annual limit to how much money you can roll over from a 401k into a traditional IRA and then a Roth IRA?
Are the conversions taxed at long or short term tax rates?
Love your videos!
If you are going to open a ROTH IRA but also know that later you plan on rolling your 401K to a traditional IRA and then rolling that money into a Roth IRA, ie the conversion ladder, should you open the ROTH IRA with the same brokerage company as your 401K and/or Traditional IRA?
What about the 10% ??? A married couple will pay taxes only in the 50k so it will be a lower bracket?
One of the most important videos
Very informative! May I ask if you can still do the Roth conversion in 2022? Thank you!
Nice job. So what about people who have already been contributing to a Roth IRA. Maybe they have had a Roth for 10 or more years already, how do they know how much they can take out at any given time?
even if you roll over the money, and wait the 5 years, dont you have to pay penalty if withdrawn before 59.5 of age???
Great video and examples. It looks like you are explaining how to address the 5-year rule. What about the rule around age of 59 1/2? In our example it is still unqualified distribution and would result in a 10% penalty wouldnt it?
Do you have to quit your job to start the conversion latter process?
Very useful information! Thank you! Quick question, if I’m rolling 50k$ each year from the traditional IRA to a Roth IRA, wouldn’t there be a point where my traditional IRA has no money left? In other words, wouldn’t I have to amass a large amount of money (say 500k) to be good for like x number of years of pulling out. Let’s say I decided I want to pull out 50k from traditional and put into Roth IRA 10 times (I.e. for 10 consecutive years) , I would need 500k in traditional right? Because 500k divided by 50k means I can do this traditional IRA -> Roth IRA conversion 10 times.
If this is true, I would have to keep working a job until my 401k balance reaches 500k.
So in other words, an individual needs to understand how much they want to get their 401k balance to (which will then tell them how long they need to work for) before this strategy you mentioned is applied?
How do I like this video a million times?!!!! THANK YOU SO MUCH for this gold mine! May you both prosper even more!
Hi Our Rich Journey, I would like to do a Roth Conversion from my 401K of my previous company. Can just do it one time. Or, just like Roth Contribution i need to do the same for Roth Conversion. thanks!
Should you always do Roth Conversions even if you don't need to access money from your tax deferred accounts early?
Thoughts on if I've been contributing to a ROTH IRA already, maxxing it out for a few years, because I've never had a job with 401k option. Should I still open a T-IRA? And if so, sohuld i start auto investing into the T-IRA?
Thanks
Thank you for this great information. I will be implementing this.
Should they move only 50K from the 401K to the IRA so they don't have to do the aggregation for pro-rata or is the pro-rata just for high income earners? Because if they move the whole 401K, like if it's 400K to the T-IRA then move 50K to a Roth IRA will they need consider the proportion the 50K is to I guess the 350K balance?
I thought, that there are limit how much money you can transfer from traditional IRA to Roth (34k). Or I am wrong?
Is there a limit to the amount of ROTH converstion you can do, if you already max out your annual contribution of 6k to your ROTH already? Also can you just do one time converstion to move all you have in traditional to ROTH?