Focusing on Your Strategy During Turbulent Times. Investors are people, and people are often impatient. No one likes to wait in line or wait longer than they have to for something, especially today when so much is just a click or two away. This impatience also manifests itself in the financial markets. When stocks slip, for example, some investors grow uneasy. Their … [Read more...] about Should You Care What the Financial Markets Do Each Day?
“Mega Backdoor Roth” – The Definitive Guide
What is “Mega Backdoor Roth IRA”? It is a financial planning technique that deals with contributing funds to a Roth IRA retirement savings account. Why does my Roth IRA need a “backdoor”? Your direct contributions to Roth IRA may be limited. There are two different limitations. The first limitation deals with the amount of money you can contribute to the account. In 2018 the … [Read more...] about “Mega Backdoor Roth” – The Definitive Guide
4 Things to Know About Backdoor Roth IRA Conversions
A backdoor Roth IRA conversion is a way of funding a Roth IRA account with a traditional IRA conversion instead of a direct contribution. People with relatively high incomes are unable to directly contribute to a Roth IRA. In 2018, the limitation starts at $120,000 for single taxpayers and $189,000 for married filing jointly. To get around this issue, they can make a … [Read more...] about 4 Things to Know About Backdoor Roth IRA Conversions
Avoid Tax Consequences With a Direct 401(k) Rollover
If you've ever left a job where you had 401(k) or similar retirement plan, you've probably received a letter from the plan administrator outlining the different options you have and their tax consequences. This document is pretty straightforward from the perspective of a tax professional or someone who works in the retirement space, however, for those without this level of … [Read more...] about Avoid Tax Consequences With a Direct 401(k) Rollover
Roth Conversions Must Now Be Used Wisely
A Roth IRA is a type of retirement account that allows the owner to contribute after-tax dollars and enjoy tax-deferred growth and tax-free distributions in retirement. The tax-deferred growth experienced in a Roth IRA allows funds to compound faster because the total amount is not affected by taxes. A Roth IRA is a great way to save for retirement and protect your retirement … [Read more...] about Roth Conversions Must Now Be Used Wisely
Tax Reform Is Here!
The Tax Cuts and Jobs Act was signed into law on December 22, 2017. The Act brings one of the most significant changes to the tax law in recent history. Most provisions of the act are now in effect, and they will have a substantial impact on a lot of areas of your financial and tax planning. Here are just a few highlights: Significant changes in tax bracket ranges … [Read more...] about Tax Reform Is Here!