The Complete Guide to IRA Contributions and Withdrawals
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Individual retirement accounts (IRAs) are one of the most important account types, and understanding the difference between Roth and traditional contributions and withdrawals is foundational to tax planning.

Account Funding Priorities for 2024
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A savings waterfall helps investors navigate the financial complexity available to them.

What Counts As Income For Roth IRA Funding Purposes?
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Roth IRAs can only be funded with earned income. Here is a guide to what the IRS considers to be earned income.

What Interferes With a Backdoor Roth?
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Here are three common Roth transactions and how they interact with MAGI for Roth IRA purposes.

Q&A: Which Self-Employed Retirement Plan Should I Open?
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Here are some of the pros and cons of specific SEP IRA and individual 401(k) retirement account options available.

I’m Young. Should I Withdraw from My Roth IRA?
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Contributing to a Roth IRA, even though you know you will withdraw it before retirement, is a sound financial strategy.

New Catch-Up Limits for Ages 60-63 in 2025 (Secure 2.0)
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Seniors born between 1962 and 1965 will be the first to be able to take advantage of these plus-sized limits.

Retirement Plans Allow Roth Employer Contributions Now (Secure 2.0)
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For those who run a retirement plan, the next step for implementing this change is to email your plan provider.

Contribution Basis is Prorated for Roth 401(k) Withdrawals But Not Roth IRA
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In a designated Roth account like a Roth 401(k), each early distribution is treated as coming part from contribution basis and part from earnings.

No More Roth 401(k) RMDs in 2024 (Secure 2.0)
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This update amends the Roth-side of employer retirement plans to behave more like Roth IRAs prior to death.

At 65, Does the 5-Year Roth Rule Matter?
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For those over age 59 1/2, you would need to withdraw all funds attributable to basis before your withdrawal would be sourced from Roth IRA earnings and the age of your Roth IRA would matter for taxation.

Account Funding Priorities for 2023
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A savings waterfall is a tool to help investors prioritize savings goals and allocate funds appropriately.

The Difference Between Roth Conversions, Contributions, and Deferrals
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It is important to know the difference between these techniques to make sure you are maximizing your retirement savings. ย 

How to Fund a Schwab Individual 401(k)
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Schwab recommends using one of the three methods discussed in this article to fund an individual 401(k).

Funding a 5-Year-Oldโ€™s Roth IRA
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We continued to hire her for several of the same tasks as last year, but also added a few new ones.

Do Large Roth Conversions Require Backdoor Roth Contributions? (2021)
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Luckily for Roth lovers like us, you donโ€™t have to choose between Roth conversions or Roth contributions.

Is a SEP-IRA or Solo-401(k) Better?
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A SEP-IRA can be opened any time before you file your tax return and you can make prior-year contributions at that time. In contrast, a solo-401(k) must be opened and contributed to before the year end to count for that tax year.

Design Your 2022 Savings Waterfall (Podcast)
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In this podcast, I discuss my recent article “Account Funding Priorities for 2022” and describe a savings waterfall for 2022. The idea is when new money flows your way, which one of these buckets is it going to land in?

Account Funding Priorities for 2022
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Which account you should fund depends on your circumstances. However, there are some general guidelines you can follow to make your decision.

Can Taxable Life Insurance Benefits Contribute to an IRA?
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If you have this fringe employer or former employer benefit, I hope you are able to take advantage of making small Roth IRA contributions throughout your retirement.

The Costly Effect Of Saving In A Taxable Account
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The annual drag of taxable account taxation may seem like a small amount, but the effect over long periods of time such as 30 years is significant.

The Role of a Roth IRA in Early Retirement
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There are several distribution rules that make Roth IRAs great savings tools for early retirees.

Individual 401(k) Elective Deferral Limits and Deadlines
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You as the business owner have until the tax-filing deadline to complete both your profit-sharing and elective deferral contributions.

How Roth Conversions Affect Your Contribution Basis
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In the eyes of the IRS, Roth conversions are a type of rollover and their part in your Roth IRA’s contribution basis is called a rollover contribution.

Unpacking Publication 590B’s Justin Example
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In Publication 590B, the IRS gives an example to demonstrate how Roth distribution ordering works.

Unpacking Publication 590B’s Ishmael Example
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In Publication 590B, the IRS gives an example to demonstrate how Roth contribution basis works in a Roth IRA.

Save the 1099-R from Your Roth Rollovers
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It is easiest to simply save your 1099-R and its numbers with your record of all your Roth IRA contributions.

Keep Track of Your Roth Contributions
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Going forward, keep track of all your contributions in a file alongside where you store your tax returns.

Funding a 4-Year-Old’s Roth IRA
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My favorite part of my daughter’s Roth IRA is that she has earned it all. I have seen her work hard, learn valuable lessons, and truly earn her wage.

Radio: Savings Waterfall for 2021
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Which account you should fund depends on your circumstances. However, there are some general guidelines you can follow to make your decision.

Account Funding Priorities for 2021
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Which account you should fund depends on your circumstances. However, there are some general guidelines you can follow to make your decision.

How Do You Report Withdrawals from Roth Contribution Basis?
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To take advantage of tax-free penalty-free Roth withdrawals of contribution basis, you need to keep careful records of your Roth contributions.

Q&A: If I Close My Oldest Roth IRA, Do I Change My 5-Year Clock?
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Fortunately, closing a specific account doesnโ€™t reset your Roth clock.

Do Children Need To File A Tax Return To Fund Their Roth IRA? (2020)
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Donโ€™t let stress about tax filing requirements keep you or your child from a powerful opportunity to provide for their future.

Q&A: Can You Fund a Roth IRA After Filing Your Taxes?
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You always have until the tax filing deadline to make your IRA contributions regardless of when you file.

This 2020, The IRA Contribution Deadline Isn’t Until July
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Because the due date for filing Federal income tax returns has been postponed to July 15, the deadline for making contributions to your IRA for 2019 is also extended to July 15, 2020.

How to Calculate Your Roth Contribution Phase-Out and What To Do With It
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What can you do when you are in the middle of the Roth IRA contribution phaseout range?

Q&A: Should I Contribute to My Roth 401(k) During a Bear Market?
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Nothing changes during a Bear Market when it comes to where you should save and invest.

How to Use Your 401(k) to Convert Only Your IRA’s Nondeductible Basis to Roth
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If you have an accepting employer plan, you could consider rolling the pre-tax funds into your 401(k) this year while converting your nondeductible basis cleanly to a Roth IRA.

Funding a 3-Year-Old’s Roth IRA
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My daughter was employed at her first job, earned her first income, and was able to fund her Roth IRA for the first time.

Q&A: Do I Need to Pay Tax on This 1099-R?
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The given numbers on a 1099-R are insufficient to be able to fill out your tax return correctly. Knowledge of what was actually done is required in order to file your taxes accurately.

How to Fund Your Roth with Babysitting Money
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For domestic tasks like babysitting there are often two options: independent contractor or household employee. Taking the time to educate yourself on the difference may be worth your while.

Help! I Inherited a Nondeductible Basis!
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If you inherit a traditional IRA from a person who had a basis in the IRA because of nondeductible contributions, that basis remains with the IRA assets as they come into your ownership.

Keeping Your Roth 401(k) Balance Separate During an IRA Rollover
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Having a 401(k) plan with both pre- and post-tax balances is quite common, but mistakes are common as well.

The Complete Guide to Retirement Account Types
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Here is a simple list of the retirement account types and their differences.

Older Than 59? Get Your Roth Out of Your 401(k) Now!
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Anyone who has to take RMDs from their employer sponsored retirement plan, sadly, has to take RMDs from all components of the plan, even Roth deferrals!

Contribute As Much As You Can to a 457 Plan
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If your employer offers a 457 plan, consider taking advantage of the ability to shelter more money each year from taxes in a Roth account.

Three Hidden Roth Conversion Opportunities
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Even the most Roth-loving individuals may have hidden Traditional assets that they do not know they can convert to Roth. Here are just a few places to look.

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