If you are age 72 or older, you generally must take required minimum distributions (RMDs) from your traditional IRA or employer-sponsored retirement plan, such as a 401(k) or 403(b), each year. These amounts are included in your taxable income, and if you fail to take your RMD by the annual deadline, the amount not withdrawn
There are many reasons why you might want to move your retirement savings to another account. Maybe you want to invest with a company with better performance. Maybe you changed jobs and want to bring past accumulations with you to a new plan. If you’re among the millions who lost a job as the economy
Converting a traditional Individual Retirement Account to a Roth IRA offers tax advantages in certain situations. It is most advantageous when you can pay any resulting income taxes without using funds from the traditional IRA. Contributions to Roth IRAs have already been taxed, so they grow tax-free. That means withdrawing from a Roth IRA after
Saving for retirement in a traditional Individual Retirement Account effectively shelters income from taxes while you’re in your high-earning years. But a Roth IRA, which allows withdrawals tax free in retirement when tax rates may be higher, is also appealing. If you haven’t balanced your investments in both types of accounts—or if you couldn’t start
As two of the most widely used vehicles for retirement savings, traditional IRAs and Roth IRAs are both designed to facilitate long-term investment and provide tax advantages. However, one of the key differences between them lies in when they are taxed. Traditional IRAs are funded with pre-tax dollars: you receive a tax deduction when you
When the Setting Every Community Up for Retirement Enhancement (SECURE) Act was enacted on January 1, 2020, it implemented some of the most significant changes to retirement plans that have been made in over a decade. One of these changes came as a disappointment to many IRA owners: the requirement that non-spousal beneficiaries of “stretch