Just as a quick note, make sure if rolling over a company retirement account to an IRA at a financial institution you do a "Transfer" not a "rollover" or there can be tax implications. Great video! Thanks Dustin! ;-)
We retired at the end of 2017 and just received a 7k tax refund for 2018. I wish our financial advisor would have informed us about a IRA to Roth conversion last year. We both worked for at least 35 years and have quite a bit in our IRAs. We only have a modest amount of money in Roths (44K total).
I did all my conversion planning with our tax CPA, but usually after I had done quite a bit of research. 2024 and 2025 are possibly the last years to do large conversions with the current low tax brackets. Our CPA set us up with all the necessary estimated tax amounts and payment coupons for each. Not sure if your taxes are a priority with a financial advisor.
Would an in-plan conversion to the Roth IRA count against the Roth contribution limit? Or, is that additional? (I'm thinking additional, because I've heard of a mega-backdoor Roth conversion before.)
My company started offering the Roth 401(k) the beginning of 2019. I’d like to convert my savings to the Roth as I’ve already started putting my contributions there. Why can’t I convert vested dollars that my company contributed?
I am still employed and just learned that I am allowed an in-service rollover of only all company contributions thus far to a Traditional IRA. Can this be as simple as rolling these funds to a Traditional IRA and then turning around and doing a conversion of the Traditional IRA to a ROTH IRA?
Any traditional to Roth conversion will likely generate taxable income federally and state, if applicable. Depending on the size of the conversions, payment for the income taxes needed to be planned for. This can be done by increasing your work withholding and/or paying estimated taxes. If you have a tax CPA they should be able to guide you on how to do estimated taxes and they are done quarterly throughout the year. No it's not exactly simple because there is planning and making necessary tax payments. If the taxes paid/withheld are not sufficient, there could be an under withholding penalty involved, so don't figure you have until April 15th to pay the conversion taxes. It can be a little tricky to determine just how much can be converted without the conversion bumping you up into a high tax bracket. Excessively large conversions can mess with Medicare fees if you're within 2 years of drawing Medicare. Please do yourself a huge favor and research how it all works. FYI, one can do multiple conversions annually and one can have multiple Roth accounts($7k max IRS contribution, and much more with a Roth 401k). The tax brackets for 2024 and 2025 are wonderful for having lower taxation on your conversions.
I want that black board in the back ground. Where do I get one???
You can also do an in-plan conversion of the employer match if the plan allows
Great advice. Not enough people know about this option. Thanks.
Great explanation I needed this one thanks
Just as a quick note, make sure if rolling over a company retirement account to an IRA at a financial institution you do a "Transfer" not a "rollover" or there can be tax implications. Great video! Thanks Dustin! ;-)
time to catch up on my regularly scheduled Jazz video!
Thanks Dustin great Info
We retired at the end of 2017 and just received a 7k tax refund for 2018. I wish our financial advisor would have informed us about a IRA to Roth conversion last year. We both worked for at least 35 years and have quite a bit in our IRAs. We only have a modest amount of money in Roths (44K total).
I did all my conversion planning with our tax CPA, but usually after I had done quite a bit of research. 2024 and 2025 are possibly the last years to do large conversions with the current low tax brackets. Our CPA set us up with all the necessary estimated tax amounts and payment coupons for each. Not sure if your taxes are a priority with a financial advisor.
I work for the pist office do you know if the tsp allows conversions good information thx
Would an in-plan conversion to the Roth IRA count against the Roth contribution limit? Or, is that additional? (I'm thinking additional, because I've heard of a mega-backdoor Roth conversion before.)
My company started offering the Roth 401(k) the beginning of 2019. I’d like to convert my savings to the Roth as I’ve already started putting my contributions there. Why can’t I convert vested dollars that my company contributed?
I am still employed and just learned that I am allowed an in-service rollover of only all company contributions thus far to a Traditional IRA. Can this be as simple as rolling these funds to a Traditional IRA and then turning around and doing a conversion of the Traditional IRA to a ROTH IRA?
Any traditional to Roth conversion will likely generate taxable income federally and state, if applicable. Depending on the size of the conversions, payment for the income taxes needed to be planned for. This can be done by increasing your work withholding and/or paying estimated taxes. If you have a tax CPA they should be able to guide you on how to do estimated taxes and they are done quarterly throughout the year. No it's not exactly simple because there is planning and making necessary tax payments. If the taxes paid/withheld are not sufficient, there could be an under withholding penalty involved, so don't figure you have until April 15th to pay the conversion taxes. It can be a little tricky to determine just how much can be converted without the conversion bumping you up into a high tax bracket. Excessively large conversions can mess with Medicare fees if you're within 2 years of drawing Medicare. Please do yourself a huge favor and research how it all works. FYI, one can do multiple conversions annually and one can have multiple Roth accounts($7k max IRS contribution, and much more with a Roth 401k). The tax brackets for 2024 and 2025 are wonderful for having lower taxation on your conversions.
Do you pay a penalty also?
trading currency ? how do you make money ? shares that trade currency ? hope to a you tube on it ! and happy easter!
When would I do the conversion, does it matter if request a conversion a couple times in the same year?
Are the rules the same for a 457b?
I have watched your videos for more than a year and i just saw you missing a finger 👀
nice explanation.. was distracted by the missing digit on the right hand though (no offense)