The Wise Shopper - Roth Conversions
Guess what’s on sale right now? Taxes. The taxable income brackets for 2024 (ordinary income tax rates) are as follows.
Guess what’s on sale right now? Taxes. The taxable income brackets for 2024 (ordinary income tax rates) are as follows.
When you contribute to a traditional IRA or a pre-tax 401(k), you can get a tax deduction and deferral on any earnings in your account, but eventually, the government is going to want its share and will require funds to come out of these accounts.
Here are ten details about excess IRA contributions and the correction process to aid you.
If you're a high earner, you may be able to get around the income limits by using the backdoor Roth IRA conversion strategy by making a nondeductible traditional IRA contribution and then converting those funds to a Roth IRA.
States are all over the map in their treatment of 529-to-Roth IRA rollovers. However, California stands alone as its residents who do a 529-to-IRA rollover will be subject to state income tax and an additional 2.5% California tax on earnings.
The SECURE 2.0 law adds several new in-service withdrawals that can be made from 401(k), 403(b) and 457 plans. The law also relaxes some of the rules for traditional hardship withdrawals from these plans.