Something to also consider for the potential reversion of tax brackets in 2026, besides the 4% difference (24 % vs 28%) is how much space we will have between the 25-28% brackets. Currently we have about $215K space taxable at 24% between 22-24% limits, but the space was a lot smaller before 2017 for the 25-28% limits.
I'm 54 and my wife and I are VERY worried about our future, gas and food prices rising daily. We have had our savings dwindle with the cost of living into the stratosphere, and we are finding it impossible to replace them. We can get by, but can't seem to get ahead. My condolences to anyone retiring in this crisis, 30 years nonstop just for a crooked system to take all you worked for.
Considering the importance of effective retirement planning, it's crucial to navigate through various investment options. A well-structured conversation with a financial advisor becomes essential, aligning strategies with individual financial goals and circumstances
Thanks for another good vid and discussion. Not much applies to me as I"m well into my retirement journey, on SS and taking RMD. I'll stil continue doing Roth conversions for the next couple of years and then reevaluate where we are. I have to keep an eye on the IRMAA brackets and potential penalties. Larry, Central Valley, Ca.
Excellent video. Thank you. On the inflation topic, it should be helpful to provide the viewers how much their purchasing power will be affected over a period of 10 years and beyond. Stocks for the long run, T-bills, and portfolio location could help to lessen the inflation sting.
Get those roth conversions done quickly. Thanks to the President and congress of 2017, whoever that was, for that temporary tax and standard deduction break.
Great video Eric! Please do one on HIGH etf...Simplify covered call etf for income based on short term treasuries..yields a super 9.5% dividend yield expense ratio .58%...looks extremely safe with an awesome payout, gaining popularity..looks like a nice addition to cash or alternative!
Great video! Question on inherited IRAs: You addressed whether or not you need to take annual RMDs over the 10 years IF the deceased had already started taking RMDs before passing. If the deceased had not yet started taking RMDs, are you required to take anything out for the first 9 years? Thanks.
Thanks Eric, always helpful. So could I save into a 529 for myself, at say age 40, for 15 years, and then retire at age 55, but then convert the money to roth ira even with no income?
He stated correctly. The rules say the 529 account must be open for at least 15 before it is eligible to be rolled over to to the beneficiary's Roth IRA.
As part of my retirement plans and also owing to the very shaky housing market now, I just sold a property in Philly and I'm thinking to put the cash in stocks, I know everyone is saying its ripe enough, but Is this a good time to buy stocks? How long until a full recovery? How are other people in the same market raking in over $200k gains in months, I'm really just confused at this point.
Re. #5 TCJA: I understood that the RATES per bracket were set to return (unless extended), but this video is the first and only place I have heard the claim that the Standard Deduction would also revert. I would like to see some sort of citation on that.
When I convert from an IRA to a Roth, do I pay for taxes from the transferred funds or from a cash account? I was told that if you have to take it from the transferred funds, the conversion is not worth it.
Cash account is best, if you have the cash available. You will probably need to file quarterlies for this. Second best is to have it withheld from the Roth, but may still be worth doing if you don't have the cash or if it would require selling assets to raise the cash (which could trigger cap gains tx). Worst is to have it withheld from the source IRA, as this will trigger additional tax liability.
Common misconception. Paying from cash or a taxable account is best but withholding from conversion is quite effective. Think about it this way, how do you pay taxes on withdrawal from an IRA? You withhold from the distribution. So why would a withholding from an income distribution be fine but withholding from a Roth wouldn't? Its all about the tax rates you pay.
Something to also consider for the potential reversion of tax brackets in 2026, besides the 4% difference (24 % vs 28%) is how much space we will have between the 25-28% brackets. Currently we have about $215K space taxable at 24% between 22-24% limits, but the space was a lot smaller before 2017 for the 25-28% limits.
I'm 54 and my wife and I are VERY worried about our future, gas and food prices rising daily. We have had our savings dwindle with the cost of living into the stratosphere, and we are finding it impossible to replace them. We can get by, but can't seem to get ahead. My condolences to anyone retiring in this crisis, 30 years nonstop just for a crooked system to take all you worked for.
Good video. I think you have a typo. @ 8:05 you said for those of you 63 this year you can take your RMD. I think you meant 73.
The chart value is correct, Mo. He just misspoke.
Really excellent summary in only 10 minutes! Appreciate your good videos and excellent graphics!
Considering the importance of effective retirement planning, it's crucial to navigate through various investment options. A well-structured conversation with a financial advisor becomes essential, aligning strategies with individual financial goals and circumstances
Thanks for another good vid and discussion. Not much applies to me as I"m well into my retirement journey, on SS and taking RMD. I'll stil continue doing Roth conversions for the next couple of years and then reevaluate where we are. I have to keep an eye on the IRMAA brackets and potential penalties. Larry, Central Valley, Ca.
I've learned so much from watching this guy. This is a great video, as always.
That guy appreciates you! Thanks for the comment
Excellent video. Thank you.
On the inflation topic, it should be helpful to provide the viewers how much their purchasing power will be affected over a period of 10 years and beyond. Stocks for the long run, T-bills, and portfolio location could help to lessen the inflation sting.
Besides rates going up in '26.. the standard deduction going down... double whammy.
Get those roth conversions done quickly. Thanks to the President and congress of 2017, whoever that was, for that temporary tax and standard deduction break.
But the personal exemption comes back.
@@alphamale2363and the 10k SALT cap goes away
Good…taxes are too low anyway! You can’t run a country with no money!
And the 10k SALT cap is lifted
Great video Eric! Please do one on HIGH etf...Simplify covered call etf for income based on short term treasuries..yields a super 9.5% dividend yield expense ratio .58%...looks extremely safe with an awesome payout, gaining popularity..looks like a nice addition to cash or alternative!
Great video! Question on inherited IRAs: You addressed whether or not you need to take annual RMDs over the 10 years IF the deceased had already started taking RMDs before passing. If the deceased had not yet started taking RMDs, are you required to take anything out for the first 9 years? Thanks.
Thanks Eric, always helpful. So could I save into a 529 for myself, at say age 40, for 15 years, and then retire at age 55, but then convert the money to roth ira even with no income?
My 529 custodian has no idea how to handle the Roth rollover. Can I just get a distribution and then immediately move it to the Roth account?
At the 9:27 mark, you say the 529 plan must be established for 15 years.. I think you meant to say 5 years. Great podcast!
No, he meant 15 years. That’s what the rule says.
He stated correctly. The rules say the 529 account must be open for at least 15 before it is eligible to be rolled over to to the beneficiary's Roth IRA.
As part of my retirement plans and also owing to the very shaky housing market now, I just sold a property in Philly and I'm thinking to put the cash in stocks, I know everyone is saying its ripe enough, but Is this a good time to buy stocks? How long until a full recovery? How are other people in the same market raking in over $200k gains in months, I'm really just confused at this point.
Re. #5 TCJA: I understood that the RATES per bracket were set to return (unless extended), but this video is the first and only place I have heard the claim that the Standard Deduction would also revert. I would like to see some sort of citation on that.
Hmmmm.... if Eric said it, I'd take it as fact.
When I convert from an IRA to a Roth, do I pay for taxes from the transferred funds or from a cash account? I was told that if you have to take it from the transferred funds, the conversion is not worth it.
Better to pay the taxes from a cash account - so you get MORE money into your ROTH.
Cash account is best, if you have the cash available. You will probably need to file quarterlies for this. Second best is to have it withheld from the Roth, but may still be worth doing if you don't have the cash or if it would require selling assets to raise the cash (which could trigger cap gains tx). Worst is to have it withheld from the source IRA, as this will trigger additional tax liability.
You can send the money to the IRS and convert the whole amount. Ask me how I know.😢
Common misconception. Paying from cash or a taxable account is best but withholding from conversion is quite effective.
Think about it this way, how do you pay taxes on withdrawal from an IRA? You withhold from the distribution. So why would a withholding from an income distribution be fine but withholding from a Roth wouldn't? Its all about the tax rates you pay.
I will be turning 65 in August this year (born in 1959). Do I need to take RMD’s at 73 or 75?
73. You need to be born in 1960 or later for RMD age to be 75. (Unless the law changes again in the near future)
I guess the NIIT thresholds are still $200k/$250k. I wonder if they'll ever adjust those.