At 40, Is There Still Value In Converting a Traditional IRA to a ROTH IRA?
Take Your Finances to the Next Level ➡️ Subscribe now:
Download FREE Financial Resources from the show ➡️
Sign up for the Financial Order of Operations course ➡️
Our professional focus is on financial planning and investment management, and we leverage our knowledge for your benefit. We help you focus on the things you can control and manage the things you can’t. Visit our site for more info ➡️
Facebook:
Instagram:
Twitter:
Let’s make sure you’re on the path to financial success – then help you stay there!
The Money Guy Show takes the edge off of personal finance. We’re financial advisors that believe anyone can be wealthy! First, LEARN smart financial principles. Next, APPLY those principles! Then watch your finances GROW!
We can’t wait to see you accomplish your goals and reach financial freedom! New shows every week on YouTube and your favorite podcast app. Thanks for coming along on the journey with us….(read more)
LEARN MORE ABOUT: IRA Accounts
INVESTING IN A GOLD IRA: Gold IRA Account
INVESTING IN A SILVER IRA: Silver IRA Account
REVEALED: Best Gold Backed IRA
Thanks guys for taking my question! Really appreciate the solid answer too! Time is money!
Hi I was just terminated from my job that I have a 401k with. I have a loan against my 401k but won’t be able to pay it off in the next few months. Should I take all my money out since there is no penalty now due to Covid and payoff the loan? Should I rollover to an ira? Please help
Yes always Roth tax free money
Covert it all to Roth early in retirement. Then you have 100% in Roth and no taxes the rest of your life.
I wish you talked just a little bit more about those of us who rolled over 401K money to Rollover IRA and have pro rata liability.
Brian/Bo, great content, thanks for the advice.
Question, my employer does not offer Roth 401K. They offer a Traditional 401k with up-to 4% match and/or a taxable 401k that can grow tax deferred with no match. If I took advantage of the taxable 401k I could do a in service rollover to backdoor Roth these funds but i would receive a 6 month penalty on the match and would lose the match for 6months on the Traditional 401k account and this would be allowed once a year.
My thoughts/question is would it make sense to contribute 4% to the traditional 401k account and contribute the rest up to the max allowed to the taxable account and do a backdoor Roth conversation sometime shortly before I retire? My fear is if I did this do you think laws on backdoor Roth conversions could change in the future and prevent me from doing the backdoor Roth? Or I can do the backdoor Roth conversions a few times before I retire and convert the funds in chunks but then it would cost me more on the match penalty.
Your thoughts?
Also, I already have a separate Roth IRA that I max out.
Looking forward to hearing your opinions. Thanks!
In the excitement to do Roth Conversions, don’t overlook his statement about having assets in each of the 3 buckets for tax treatment. There are advantages to a traditional 401k so you don’t have to rollover all of it.
I've learned the Federal and State tax rules as they apply to my situation. I'm in retirement now and I have spreadsheets to estimate my income. Using an online tax estimator site, I can judge how much Roth conversions and capital gains will give me the optimum tax benefit. Not the lowest taxes but the best overall rates.
I am opening Roth and will max out every year for 10 or more years. I rolled over 401k to IRA. I am 54 yrs old.
Your 88x advice convinced me to open a custodial Roth for my 16 year old in his first job. I'm matching his contributions. I'm telling him this money might be with 100x when he retires. I'm also doing a back door Roth for myself at work
Thanks for these video ❤️ it really helps well I will also say this here as much as I have been successful in stock so far, I also advice we get involved with bitcoin trading mostly now that the market is very bullish and profitable if you trade with a working strategy/daily signals.