401(k)

Slott Report Mailbag: All About Roth IRA Conversions

This special edition of The Slott Report Mailbag answers several of the common Roth conversion questions we receive - from the beginning "conversion conversation" to the actual conversion process. Click to read this week's Q&A with our IRA Technical Expert.

Where Should You Convert? Roth IRA or Roth 401(k)?

You’ve had "the conversion talk" and have decided that a Roth conversion is in your best interest. Now you have a choice ... should you convert your existing 401(k) money to a Roth 401(k) – your plan must have adopted this voluntary feature in order for you to do so – or should you make a conversion to a Roth IRA? While on the surface these two types of accounts are very similar – they both, for example, offer the prospects of tax-free growth and future distributions – there are a number of subtle, and not so subtle, differences that may make one type of conversion far more beneficial for you than the other. With that in mind, here is a summary of some of the most important factors to consider when making this decision:

3 Reasons to Wait Until You Retire to Make a Roth Conversion

One of the most common Roth IRA questions I'm asked is, "Should I make a Roth conversion?" While Roth conversions can make sense at any age, depending on your particular circumstances, generally speaking, the younger you are, the more it makes sense. In this article we go over 3 reasons to wait until you retire to make a Roth conversion.

IRA Survey Shows People Spend More Time Choosing a Restaurant Than Planning IRAs

The latest TIAA-CREF survey finds that fewer than 1 in 5 Americas are contributing to an IRA, potentially missing tax and savings benefits. The survey, conducted by an independent research firm between February 13-16, 2014, showed that just 17% of respondents contributed or were contributing to an IRA in 2014 - down from 19% last year and 22% in 2012.

How to Avoid Taxes With an Outstanding Loan in Ex-Employer 401(k) Plan

Let's say that your employer's 401(k) plan allows you to take a loan against part of your 401(k) balance (generally the smaller of half of your vested balance or $50,000). You decided to take a loan and you’ve been repaying it by having it taken out of your paycheck. But now, you no longer work for that employer. Perhaps you retired, or voluntarily switched jobs, or maybe you were laid off. We explain how to navigate this scenario.

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