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IRAs: Roth vs Traditional
Eligibility, contribution limits, and when each one shines.
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10+ hour, 48+ min ago (1129+ words) Josh is an award-nominated journalist with nearly a decade of experience, including writing for national newspapers. A data whizz, he specialises in covering personal finance and investing. Age gaps between partners in later life aren’t particularly uncommon, but they can…...
He Turned 73 With His Own IRA and the IRA He Inherited From His Wife. One Withdrawal From His Own Was Supposed to Cover Both. The IRS Fined Him on Hers
6+ hour, 30+ min ago (437+ words) A 73-year-old retiree followed a perfectly legal IRS shortcut for combining retirement account withdrawals, then got fined for a distribution he thought he had already taken. The rule he missed is written in plain sight, and it catches surviving spouses…...
Worried About RMDs in Retirement? 3 Key Moves to Lower the Hassle Factors.
4+ hour, 14+ min ago (595+ words) If you have retirement savings in a traditional IRA or 401(k), you'll be subject to required minimum distributions (RMDs) once you turn 73 or 75, depending on your year of birth. And those RMDs could be a hassle, to say the least. Not…...
He Spent Down the Roth First to 'Save' the IRA for His Kids. He Left Them a $120,000 Tax Bill Instead of a Tax-Free Account
8+ hour, 40+ min ago (540+ words) Saving the Roth for the kids sounds generous, but a rule most retirees missed in 2020 turned that good intention into a six-figure tax burden spread across a decade of their children's peak earning years. Life After Work desk. Editor: David…...
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She Inherited Her Mother's $180,000 IRA at 58 and Was Told She Had 10 Years to Empty It. Nobody Told Her the IRS Also Wants a Withdrawal in Each One of Them
11+ hour, 8+ min ago (730+ words) Inheriting an IRA comes with a 10-year deadline most people know about and a year-by-year withdrawal requirement almost nobody sees coming until the IRS penalty notice arrives. Life After Work desk. Editor: David Beren. The stretch IRA that once let…...
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For Twenty Years He Made IRA Contributions the IRS Never Let Him Deduct. One Form Filed Every April Is the Only Thing Standing Between Him and Being Taxed on That $150,000 Twice
15+ hour, 3+ min ago (505+ words) If you have a traditional IRA and your income was too high to deduct the contribution, you’ve been quietly building a stash of after-tax money inside a pre-tax account. That stash is called basis, and the only thing separating you…...
He Moved a $500,000 IRA to a New Broker and Missed the 60-Day Window by Two Days. The IRS Has a Waiver, and Almost Nobody Asks for It
17+ hour, 49+ min ago (959+ words) A single missed deadline turned a half-million-dollar retirement account into a potential six-figure tax bill, but the IRS quietly offers a way out that most taxpayers and even many advisors never think to use. The check for $500,000 sat on the…...
He Converted $120,000 to a Roth at 63 to Get Ahead of the RMDs. Medicare Later Read It as Income and Charged Him $2,400 More in Year One.
1+ day, 3+ hour ago (659+ words) A perfectly legal Roth conversion strategy that his CPA approved left one retiree blindsided when Medicare priced his premiums two years later, and the form designed to fix exactly this kind of situation turned out to be completely off limits....