Benefits of Roth IRA Rollovers

In this podcast, learn what a Roth IRA is and find out the benefits of contributing to a Roth. There are different requirements for Roth contributions and rolling your IRA or 401(k) into a Roth. Find out the difference between a Roth contribution and a Roth conversion and learn just how much control you have over your taxes in retirement.

2:35 I want to make two important points here. One, you have more control over how much you pay in taxes in retirement more than any other time in your life. Two, this isn’t about simply filing your taxes on April 15^th, this is about a forward-looking strategy”

7:00 “If it goes to a Roth IRA or a Roth conversion, all future income and growth is tax-free”

12:04 “I would encourage all of you who are listening right now to make sure that you are not missing this opportunity; call HR, talk to your plan administrator to see if they have a Roth provision”

15:46 “They sound like similar words but they’re completely different; contribution is contributing part of your salary, conversion is taking money that’s already in an IRA or a 401(k) and converting it to a Roth”

21:51 “There’s something called re-characterization; you have until October 15^th of next year to figure out what you want to do with that conversion”

28:30 “Everything has to work together, your taxes, your investments, the cash flow, the Social Security, pensions and everything else”

30:44 “A Roth IRA is simply an investment account; you get to invest how you want”

37:11 “All future income and growth and principal is tax-free [for a Roth]. It’s tax-free for you of course, it’s your account, but if you pass away your spouse inherits it tax-free, when you both pass away your kids, grandkids or whoever will inherit it tax-free”