As part of SECURE Act 2.0 legislation, an Individual Roth 401(k) plan is a new account registration type available to Schwab clients.
I think the intent of this list is to make advisors feel under-prepared and thus more likely to sign up for one of the paid newsletters Ed Slott provides. Regardless, here are my answers.
Individual retirement accounts (IRAs) are one of the most important account types, and understanding the difference between Roth and traditional contributions and withdrawals is foundational to tax planning.
Hopefully, you didn’t bother looking, and I can be the first to tell you.
After over a decade of broken promises and rising costs, our need for a more sustainable tax system is acutely felt.
A savings waterfall helps investors navigate the financial complexity available to them.
While an excess or failed backdoor Roth can feel very stressful to solve, it is a normal and quick fix for your qualified financial custodian.
After over a decade of broken promises and rising costs, our need for a more sustainable healthcare system is acutely felt.
Twelve-month inflation for all items ending in September 2023 has been 4.1%, so the 2024 contribution limits increased significantly but less than last year.
We are very pleased to announce that Jacob Massanopoli is our newest CERTIFIED FINANCIAL PLANNER™ (CFP®) professional at Marotta Wealth Management!
Within employer-sponsored retirement plans, there are special provisions for employees (not owners) who continue to work beyond their typical required beginning date.
This new rule says that the account owner can distribute funds from a 529 plan directly to the designated beneficiary’s Roth IRA and have the rollover “be treated in the same manner as the earnings and contributions of a Roth IRA” (meaning no taxation).
We are very pleased to announce that Greg Vairo is our newest CERTIFIED FINANCIAL PLANNER™ (CFP®) professional at Marotta Wealth Management!
I am pleased to announce that our newest CERTIFIED FINANCIAL PLANNER™ (CFP®) professional at Marotta Wealth Management is me!
Here are three common Roth transactions and how they interact with MAGI for Roth IRA purposes.
Here are some of the pros and cons of specific SEP IRA and individual 401(k) retirement account options available.
I have difficultly imagining a likely outcome where I would regret a Roth conversion.
For those who run a retirement plan, the next step for implementing this change is to email your plan provider.
For those over age 59 1/2, you would need to withdraw all funds attributable to basis before your withdrawal would be sourced from Roth IRA earnings and the age of your Roth IRA would matter for taxation.
A savings waterfall is a tool to help investors prioritize savings goals and allocate funds appropriately.
Sophisticated tax planning can be effective at any age. However, with great complexity comes great opportunity.
To avoid getting issued an IRMAA, you can proactively tell the SSA of any changes your income has seen in the past two years using a “Medicare Income-Related Monthly Adjustment Amount – Life-Changing Event” form.
Twelve-month inflation for all items ending in September 2022 has been 8.2%, so it is not surprising that the 2022 contribution limits have seen more increases than normal.
Marotta Wealth Management is an independent, fee-only, comprehensive wealth management firm offering a complete range of investment management and financial planning services for clients both locally in the Virginia area as well as across the country. Located two hours North … Read More
If you receive Social Security benefits, the portion of those benefits which will be taxable depends on your income. The taxable portion can be anywhere from 0% to a maximum of 85% of your benefits.
On Tuesday, February 8, 2022, David John Marotta appeared on Radio 1070 WINA’s Schilling Show with Rob Schilling to talk about “The Failure of Government.”
A SEP-IRA can be opened any time before you file your tax return and you can make prior-year contributions at that time. In contrast, a solo-401(k) must be opened and contributed to before the year end to count for that tax year.
In this podcast, I discuss my recent article “Account Funding Priorities for 2022” and describe a savings waterfall for 2022. The idea is when new money flows your way, which one of these buckets is it going to land in?
To avoid getting issued an IRMAA, you can proactively tell the SSA of any changes your income has seen in the past two years using a “Medicare Income-Related Monthly Adjustment Amount – Life-Changing Event” form.
Which account you should fund depends on your circumstances. However, there are some general guidelines you can follow to make your decision.
The annual drag of taxable account taxation may seem like a small amount, but the effect over long periods of time such as 30 years is significant.
These complex formulas help decide when highly appreciated investments should be sold and the proceeds put in a different investment philosophy.
There are several distribution rules that make Roth IRAs great savings tools for early retirees.
Like many new features on Schwab’s website, they must be used responsibly to not create problems.
Doing some conversion is usually much better than doing no conversion at all. We offer these four simple but effective strategies to calculate a good-enough conversion target for this year.
In Publication 590B, the IRS gives an example to demonstrate how Roth distribution ordering works.
Jacob Massanopoli is a financial analyst for Marotta Wealth Management. He is part of our tax specialty team and helps create our customized Roth conversion recommendations for Comprehensive clients. He graduated from Virginia Tech and holds an Honors Scholar B.S. … Read More
Greg Vairo is a financial analyst for Marotta Wealth Management. He is part of our tax specialty team and helps create our customized Roth conversion recommendations for Comprehensive clients. He graduated from Virginia Tech Cum Laude and holds an Honors … Read More
The 2021 tax credit is worth $3,600 for children under age 6 and $3,000 for those under age 18. These rules apply to tax year 2021 only.
In Publication 590B, the IRS gives an example to demonstrate how Roth contribution basis works in a Roth IRA.
Which account you should fund depends on your circumstances. However, there are some general guidelines you can follow to make your decision.
Which account you should fund depends on your circumstances. However, there are some general guidelines you can follow to make your decision.
To take advantage of tax-free penalty-free Roth withdrawals of contribution basis, you need to keep careful records of your Roth contributions.
William Rice is a financial analyst for Marotta Wealth Management. He is part of our tax specialty team and helps create our customized Roth conversion recommendations for Comprehensive clients. William is a quintuple major from Liberty University, holding degrees in … Read More
Depending on your particular case and Social Security agent, you may get your surcharge waived, lowered, or upheld.
Roth conversions can only be performed during the IRA owner’s lifetime.
Taxpayers of any income level, age, and employment or retirement status can convert their pre-tax individual retirement assets to Roth IRA.
An important part of the family’s emergency plan is to make sure you have a plan for when the financial spouse can no longer serve the family in that way, either because they are no longer interested or because of their incapacity.
We have an almost secret code behind the images we select.
