Tag: Roth IRA

Tax-free rollover from 529 plans to Roth IRAs will be allowed starting in 2024

In December 2022, Congress passed the Consolidated Appropriations Act of 2023, an omnibus spending bill that includes the much-anticipated and long-awaited retirement bill known as SECURE Act 2.0. One of the provisions of SECURE Act 2.0 that has grabbed a disproportionate...

401(k) Contribution Limit increased to $20,500 in 2022

Starting in 2022, the maximum contribution that individual U.S. taxpayers can contribute to their 401(k) plans will increase to $20,500, up from $19,500 for 2021 and 2020. The limit on annual contributions to an IRA remains unchanged at $6,000. The...

Down market could be right time to convert IRA to Roth IRA

Markets are down, and accordingly so is the value of many IRA accounts.  This decline may be a window of opportunity to convert IRAs into Roth IRAs.  Tax will be due on the value of the IRA converted, but the...

How to enhance retirement planning under new tax laws

A recent article from CNBC outlined several ways taxpayers can improve retirement planning under new the tax laws. Here’s an overview: Move to a low-tax state. New caps on state and local tax deductions make retirement in high-tax, blue states...

Prepare your child for 2055(!) by making an IRA Contribution

A child or teen working a summer job may be eligible to make an annual contribution to an IRA. To be eligible, the child must have earned income that could be from a full-time or part-time job, or other activity...

High wage earners can consider a “backdoor” Roth IRA contribution

High wage earning clients often have a modified adjusted gross income that is too high to enable him or her to deduct a traditional IRA contribution or contribute directly to a Roth IRA. This is a very interesting article on...

New for 2013 – “In-Plan Roth Rollover”

For the past few years, plans with designated Roth accounts could allow an individual to roll over an amount from a non-Roth account into the individual’s designated Roth account in the same plan, but only amounts the individual could have...