However, not everyone is eligible for this retirement strategy so it’s important to do your research before attempting a mega backdoor Roth. A mega backdoor Roth is a strategy that allows ...

Savings on taxes is the biggest reason to add Roth IRAs to your retirement portfolio, and it’s never too late (or too early) to do so. That’s the thinking of CPA Larry Pon, founder of Pon ...

In other words, you can redefine a Roth IRA contribution as a traditional ... Check with your IRA custodian/trustee about its procedure and any documentation requirements for processing a ...

But the five-year rule for Roth IRA conversions is different. Each conversion is subject to its own five-year holding period. If you withdraw funds before those five years are up, you could face a ...

If your after-tax contributions accumulate investment earnings, the IRS has said it’s OK to split up that money, by rolling your after-tax contributions into a Roth IRA and the investment ...

There are three compelling reasons why your tax rates may very well be higher for you in the future, and if that is the case, you’ll want to consider a Roth IRA conversion to lower your tax hit.

and it’s a “great way to sock away a lot of money into a Roth that will grow tax-free, and your heirs will receive these funds tax-free.” “You pay taxes as you contribute in exchange for ...

The Roth IRA is an individual retirement account available to workers under a certain income threshold. Its unique selling point lies in the tax benefits it offers. Unlike traditional IRAs ...

A backdoor Roth IRA isn’t a specific type of individual retirement account. Rather, it’s a description of a strategy to help ...

Troy Segal is an editor and writer. She has 20+ years of experience covering personal finance, wealth management, and business news. Chip Stapleton is a Series 7 and Series 66 license holder, CFA ...

Since you must pay income taxes on the amount you convert to a Roth, it’s ideal to do it in a low-tax year. Some retirees who live off of a steady annual income throughout retirement may never ...