The Right Retirement Plan: Do I Choose a Traditional or Roth 401(k)?

If your workplace offers a Roth 401(k) retirement savings plan in addition to a traditional 401(k), picking between them comes down to taxes. My friend Abby recently finished her graduate degree and just started a new job as a business analyst. After reviewing her company’s employee benefits package, she called to ask two specific questions:…

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Inheriting an individual retirement account? Here’s how to avoid a tax bomb

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KEY POINTS The Secure Act of 2019 added new rules for inherited IRAs, requiring many heirs to withdraw the balance within 10 years. Without tax planning for IRA distributions, higher earners may reduce their net inheritance. Financial experts say account holders and beneficiaries may lessen the sting with proactive tax moves. While inheriting money is…

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Should I roll my Roth 401(k) into a Roth IRA?

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Q.: I’m thinking of retiring and rolling my Roth 401(k) to a Roth IRA. A co-worker says if I roll it to a Roth IRA, I can’t touch it for five years without penalty. I thought penalties ended at 59½. I’m 68. Can you clear this up for me? Sam in Dallas A.:  Sam, I’ll try. …

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A Little-Known ‘Back Door’ Trick for Boosting Your Roth Contributions

WSJ ILLUSTRATION LARS LEETARU

An additional after-tax contribution to your 401(k)—now allowed in the plans of many large employers— can grow tax free if it’s moved to a Roth account If business titan Peter Thiel’s $5 billion tax-free individual retirement account has you jealous, here’s a way to build a pot of tax-free retirement savings without paying much in taxes: A…

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Special-Needs Trusts: How They Work and What Has Changed

special needs trusts

Trusts give parents of special-needs children additional options for extending care and financial assistance. But you might need some expert help. Can you explain how a special-needs trust works? We have an adult child on disability and have been told we can set up a special-needs trust for her. We have an individual retirement account…

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What’s The Best Retirement Account? Why It Might Be The Roth IRA

roth money

Saving for retirement is one of those things you know you should do, but why worry about something that’s 30 or 40 years away? That’s a problem for Future You. If you’re in your 20s and 30s and that’s your stance on stashing cash for retirement, you’re not alone. Lots of young people back-burner saving. After all,…

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