Best-selling author James Lange discusses the secret to understanding Roth IRA conversions, the breakeven point for Roth IRA conversions and how Roth IRA conversions can benefit you at any age.
Are you interested in learning more about the Death of the Stretch IRA legislation? You can watch Jim’s entire 1-hour webinar for free here:
Learn more about expected rule changes to the stretch IRA: …(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
![[Global Debut] “The Financial Dark King of the Dragon Emerging from the Abyss” – Delivery Guy Delivering Abortion Pills Turns Out to Be Ordered by Girlfriend? I Sacrificed Everything for You, Only to Face Such Betrayal, Truly Outrageous! #HotShortDrama #ShortDramaRecommendation #Rebirth #Urban #PowerfulWriting #City](https://i.ytimg.com/vi/NYhbyUCTvw0/maxresdefault.jpg)
I thought that if you have a certain amount of money that you can't do a Roth conversion.
.
The one variable I focus on is the current vs future taxable position a person is in and will be in.
Does this guy think he’s speaking to 5th graders.
That is one HUGE assumption…..the flat 25% tax. You said it wasn't real world it certainly is NOT. That is what makes this video essentially useless.
Let's face it -tax payers saved not just for their retirement but to pass on savings to help their kids in retirement. The social security is nearly insolvent. We've been had. We're talking trillions. They've finally destroyed the 401k. Back to hiding your penny's under the mattress.
No 401k was ever available to me, and I'm glad. In 1984 I started contributing the maximum to my IRA each year. In 1998, when the Roth IRA was started, I switched completely to the Roth. Now over 20 years later, and on the cusp of my first RMD, I'm so happy, because my RMD is very manageable.
Those early tax savings can really ding you later on. Most people can't think ahead enough to dinnertime.
The Roth is tax free forever even on the growth. The IRA is taxed, even after death!
I think everyone should consider 401k but only to the match, then fill the Roth if available, then taxable. Buy and hold mostly index funds in taxable and you'll be a happy oldtimer.
I don't know what's wrong, but I can't play this video, not even after restarting the phone, or only caches. I have no issues with any other videos.
I am missing something. If a person in their 50s takes $100,000 IRA and turns it into a Roth, are they paying tax on the initial money put into it and let's say that was initially $ 35000 or would they pay tax on the entire amount which has now grown to a hundred thousand?
Nobody should convert 100% of their IRA to a Roth all at once when they could do it at a lower tax rate. Just a dumb example. Reduce taxes while your working by contributing to 401k/Traditional IRA, then after you retire, convert it to a Roth at a lower tax rate.
Roth Conversions
I am 59 1/2 yo, and have just over 1 million in 401k plan.
I am planning to work at least 10 more years, and plan to convert between 50k and 100k of 401k per year, to Roth 401k.
I will pay tax with after tax money each year.
I will also continue contributing max to my 401k and 457B plans until retirement.
My current gross income including income from rental properties is about $450,000 per year.
My question is would I be better off doing a max one time conversion of my retirement accounts to Roth, and using retirement account money to pay tax, then have more years for Roth to grow fully funded?
Or, does it make more sense to proceed as I am currently doing, converting $50k to $100k per year paying tax yearly with after tax moneys?
2 things: 1-The money a person puts into a IRA is not taxed at the time of deposit (let's say weekly). So, if the person was in 25% tax rate, they may only be in 15% rate without that money being counted. 2-you said the person converted the $100k to a ROTH, at that time they will have to pay taxes on it.
I have my retirement savings in a 457B account. I do not need it currently for living expenses. I have been pre-paying my mortgage off out of income from my pension and Social Security. I am paying 1000 per month and expect to have it paid off about mid 2018. I have been taking some money out of my 457B account to fulfill some of my bucket list. I know I will eventually pay taxes on my money and I am carefully to make sure I stay at my marginal tax rate. Currently I control how much I take out each year but not so much when I reach 70 yrs old and the RMD kicks in. Next year I will be 65 and have 12000 per year money freed I have paid taxes on from current income since I will have no mortgage. I plan on opening a Roth IRA and transfer what ever money I can from my 457B account that does not trigger more than 12000 per year in taxes. I have 5 years before I turn 70 and cannot do that anymore. I should at least be able to move half of my money to a Roth by then. During my working years using my 457B account I manage to keep my taxes at a 15% marginal rate instead of 25% or more rate most years. My goal now is to transfer as much as I can to a Roth and leave most of it to my children and grandchildren.Even if they have to take it out, it will be tax free and they can use it to make up the difference of maxim contribution to their retirement saving vehicles including a Roth IRA. I guess this is my version of a stretch IRA.