.A Roth IRA conversion can offer tax-free growth and withdrawals, but it requires careful planning to avoid tax pitfalls and align with long-term retirement goals.

It's easy to understand why Roth IRAs (individual retirement accounts) are a popular retirement savings vehicle. IRAs are funded with after-tax dollars and offer tax-free growth and withdrawals. And ...

There are two 5-year rules: One for contributions and the other for conversions. A subset of rules exists, based on your age. It’s important to know which qualified expenses allow you to withdraw ...

In a previous article about Roth conversions, an advisor wrote: “For many folks, a prime time for Roth conversions takes place during the years after retirement but before Social Security and RMDs ...

When you reach retirement age, financial decisions become even more important as you are no longer generating income from working. Every choice you make about your money has a direct impact on your ...

I found your column "Do Roth IRA conversions still make sense with the passage of the GOP tax law?" very helpful and I better understand the strategic choice a conversion to a Roth IRA represents. My ...

You will owe taxes on your Roth IRA conversion in the year of the conversion. Your converted funds must stay in your Roth IRA for five years before you can withdraw them penalty-free. Roth savings ...

Albert, a 57-year-old listener, wrote to Orman after moving $10,000 from his traditional IRA into a Roth IRA in 2024. Like many investors, he knew he would owe ordinary income taxes on the conversion.

Roth conversions are one of the most powerful financial planning tools available. While they’re not right for everyone, for many investors, a Roth conversion can unlock huge tax savings. There are ...

Here's how to decide what to do with your 401(k) after leaving your job, including leaving it where it is, rolling it into an IRA, or moving it to a new employer’s 401(k).

When Sean Kelly sits down with clients to discuss how to transition to new Roth catch-up rules from the IRS, he often finds himself talking less about investments and more about payroll files. “It’s ...