Tag: Roth

Starting your first job is an exciting milestone, and it’s also the time to think about your financial future. One of the first decisions? Whether to go for a Roth or a Traditional 401(k). Let’s dive into what each option means for you. When you’re just kicking off your career, ...

If you’ve read through your company’s benefit package lately, you probably noticed a new option when it comes to saving for retirement: the Roth 401(k). Just over the last five years, the number of plans offering a Roth 401(k) has skyrocketed. About 3 out of 4 workplace retirement pla...

What is a Mega Backdoor Roth IRA? A Mega Backdoor Roth IRA is a retirement savings strategy that allows high-income earners to make additional contributions to a Roth IRA, even if they are ineligible to contribute directly to a Roth IRA due to their income. This strategy can be a powerful tool fo...

Free climbing without a safety line, hundreds of feet off the ground is impressive to see, but how well would you perform with nothing to catch you? Fear of death makes focusing on your next move very difficult. You are more likely to succeed in putting yourself out there if you have a safety net...

The American retirement landscape is becoming increasingly complex as the financial industry continues to evolve. One decision employees must make when planning for retirement is whether to invest in a Roth 401(k) or a traditional 401(k). Both options have their merits and drawbacks, making it diffi...

Roth IRAs are powerful accounts that help you save for retirement and become tax-free millionaires, where the money you put in grows tax-free and you’re able to take it out without paying any of that to the government in the future. It is a great way to save for your future but there are some ...

The two-pronged axis of employee-sponsored pension plans and individual retirement accounts is the stage where, for most Americans, the majority of retirement planning happens. Within that framework, Roth IRAs are renowned for their unparalleled ability to secure tax-free growth. But there is a c...

The Traditional 401k is a powerful investment tool that allows you to deduct contributions made from your tax return and pay tax on withdrawals in retirement. That is, contributions made are tax-deferred until retirement. This is usually suited towards investors that will have a lower tax ...

Small business owners can have dramatically different goals for their 401(k) plan. While some want to maximize key employee contributions, others want to incentivize plan participation by all employees. Business owners have nearly endless options for meeting these goals — many with very differ...

When your modified adjusted gross income (MAGI) is above a certain threshold, you’d have to go through the “backdoor” conversion if you want to contribute to a Roth IRA. According to Investopedia, “a backdoor Roth individual retirement account (IRA) is legally permissibl...

Making too much money can cause problems… For example, if you make too much money you are no longer eligible to contribute to a Roth IRA. And most people know that Roth IRA’s are one of the best ways to put yourself in a position for a tax-free retirement. So what do ...

For example, if you make too much money you are no longer eligible to contribute to a Roth IRA. And most people know that Roth IRA’s are one of the best ways to put yourself in a position for a tax-free retirement. So what do you do Well, contributing to a Roth IRA isn&...