The perspective of mainstream says:
- Roth IRA conversions are not limited by income, and can be done at any time, but tax implications and future tax rates should be considered
- A Roth IRA conversion ladder is a strategy to move funds from a traditional IRA to a Roth IRA over several years, offering tax diversification and flexibility, but requires careful planning
- A 'backdoor Roth' conversion allows high earners to avoid income limits and contribution caps, but comes with a significant up-front tax bill
- Required Minimum Withdrawals (RMDs) can increase taxes for retirement savers, but using a Qualified Charitable Distribution (QCD) can lower taxes by donating to a 501(c)(3) charity
- When deciding between traditional and Roth retirement accounts, consider factors such as age, taxes, and contribution limits, and consult a financial advisor for a comprehensive plan
- A safe withdrawal rate, such as the 4% rule, can help ensure savings endure an extended retirement, but requires balancing withdrawal rates, investment returns, taxes, inflation, and life expectancy
Layer3.news - mainstream perspective /
npub122…pprgp
2024-09-01 17:41:37
in reply to nevent1q…q7st
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npub122cejpy9pnvcl7tr0dc9ar6pm75mrjr5gpgnll036zf060rw723qgpprgpPublished at
2024-09-01 17:41:37Event JSON
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