Financial advisors and CPAs often bat around terms such as "workaround Roth IRA" or "Backdoor Roth IRA" referring to a controversial technique wondering "is this even legal?"
The new tax bill has 5 key changes that taxpayers can expect as a result of this new bill, including:
Changes to the personal tax code
Impacts on business owners and the introduction of the pass-through deduction
The ability to utilize a 529 Plan to pay for private elementary and secondary education
The doubling of the estate tax exemption
Read on to learn more.
Every financial advisor worth his or her salt knows the sublime benefits of the well-known and easily-confusing social security strategy called “File-and-suspend.” The strategy was for the higher wage earner to file for benefits but elect to suspend receiving them and so earn deferred retirement credits.
If you’ve been reading my blog you’d know that I think Roth savings are a great opportunity for many, many investors. If you plan to max out your contributions this year you can effective save more by saving in a Roth, whether an IRA or 401(k). Recently I’ve run across a common calculator available on the internet. When a user puts in their details it is supposed to help you compare saving in a Roth 401(k) or traditional 401(k). However, the default assumption is that when you decide how much to contribute you will reduce the amount you will be saving in a Roth by the amount of taxes you would have to pay. That seems like something a rational investor would do, right?
In an earlier post I described the basics of a Roth IRA and one of the main loopholes in retirement savings – that you can make non-deductible contributions to an IRA account and convert to a Roth IRA. However, there are some times in life that may make more sense to save and to convert.
One of Independent Financial Planning’s favorite universal investment concepts is to take advantage of tax-deferred and tax-free vehicles for retirement. ... the bottom line is that saving in a Roth IRA is extremely beneficial toward retirement.