Can You Put Money Into a Roth After You Retire?
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- เผยแพร่เมื่อ 13 ก.ย. 2024
- After you retire, can you still put money into a Roth IRA? Here are 3 ways you can!
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Mike Bernard, CFP® offers advisory services through KFG Wealth Management, LLC dba Korhorn Financial Group. This information is for general financial education and is not intended to provide specific investment advice or recommendations. All investing and investment strategies involve risk, including the potential loss of principal. Asset allocation & diversification do not ensure a profit or prevent a loss in a declining market. Past performance is not a guarantee of future results.
Investing in Roth IRA can be a good choice since they are funded with after tax dollars, your contributions can grow tax-free over time. When you withdraw money from your Roth IRA in retirement, you won’t have to pay tax on it, which will help you keep more of your hard-earned money. I retired with 5 million dollars
I bet you didn't do that without a financial advisor. I’m also closing in on retirement, and I have benefitted much from using a financial advisor. I didn’t really start early, so I knew the compound interest of index fund investing would not work for me. Funny how I pulled in more profit than some of my peers who have been investing for many years.
Haha. I definitely didn't pull that in myself. I knew next to nothing in finance. A good financial advisor really does make a lot of difference.
Please who is the consultant that assist you with your investment and if you don't mind, how do I get in touch with them?
I've shuffled through investment coaches and yes, they can be positively impactful to an individual's portfolio, but do your due diligence to find a coach with grit, one that withstood the 08' crash. For me, Carol Vivian Constable turned out to be better and smarter than all the advisors I ever worked with till date, I’ve never met anyone with as much conviction.
Thank you for this amazing tip. I just looked the name up, wrote her and scheduled a call.
If you do a Roth conversion and pay the taxes out of a non-retirement account (savings, etc.) instead of having them withheld from the conversion amount, the amount of tax paid effectively functions as a new contribution to the Roth account. For example, suppose you're in the 22% tax bracket and have $1000 in an IRA that you want to convert. Only $780 of that amount is really yours; the IRS claims $220 in taxes. If the taxes are withheld from the conversion, you will wind up with an additional $780 in the Roth account, but that entire $780 is yours; you've moved your $780 share in the IRA to the Roth, and your share in the IRA+Roth is unchanged. However if you pay the $220 tax out of savings, then you wind up with an additional $1000 in your Roth -- all yours -- and your share of the IRA+Roth is increased by $220, which is effectively a contribution made from savings.
i retired in april this year just for the weather lol. i wanted to stand outside in the warm sun on a monday morning drinking a cup of coffee to really appreciate it.
I knew that was a Michigander accent before you even said Midwest! Great info. Thank you for this. (Go Buckeyes!)
Great video. We are all seeking for financial independence and a better way of life. This is not difficult to achieve with savvy investing, a frugal lifestyle, and cautious budgeting. I'm glad I learned early on to work hard for financial independence. As Warren Buffet said, he has seen this happen many times in his life. Not an investor, My husband and i never earned more than a middle class salary. We plan to get retired at 58 with a stock portfolio worth $1.7M. We have never sold so much as one share of stock.
People don't really know this, You need to create your own process, manage risk and stick to the plan, through thick or thin while also continuously learning from mistakes and improving.
Absolutely, I'm in full agreement. At 66 years old, I've recently retired and hold around $1.2 million in external retirement funds. Being debt-free, my retirement funds represent only a fraction of my portfolio's total value over the last three years. Truthfully, I didn't achieve this alone; a financial advisor guided me through this journey. Having a financial advisor is currently the optimal approach for navigating the stock market, particularly for individuals approaching retirement.
Finding financial advisors like Margaret Johnson Arndt who can assist you shape your portfolio would be a very creative option. There will be difficult times ahead, and prudent personal money management will be essential to navigating them.
Thanks for sharing, I just looked her up on the web and I would say she really has an impressive background in investing. I will write her an e-mail shortly.
I retired in June, which means I am still eligable for a prorated performance bonus payable next year. Is that considered earned income, which would allow for a roth contribution?
5:06 What about payout from a 457b or 403b? These are deferred compensation and are not taxed until they are drawn upon (ROTH versions excepted).
Really enjoyed this video. Thank you.
8:22 This is exactly what we are planning to do as my wife retires early 2025 and then we will use that money to offset what is goin into ROTH accounts(s).
RMDs and Spousal IRAs:
- if you reach the age when you have to take RMDs, but your Spouse is still working . . .
[ ] Can you put your RMD into a Spousal ROTH IRA ?
Thank you! I had that question myself
Why did you limit it to W2 income? Wouldn't 1099 income work as well?
I also have this question for 1099 NEC and Misc from consulting work?
If you do a 20k conversion of a income fund and you have the income fund opened in your traditional roth already does the converted amount go into to roth income fund that is already opened?
What about income from interest? Is that earned income?
Questions: 1. Spouse A earns $1000, is a Spousal Roth Contribution limited for Spouse B to $1000 or A+B can't exceed $1000 ?
unlikely, it is based on the joint return and the IRS can buy the argument that it was the working spouse contributing, but the limit is the joined income. They do not check who actually is contributor but they do check the limit covered with earned income
I'm not kidding when I say that the market crash and high inflation have me really stressed out and
worried about retirement. I've been in the red for a while now and although people say these crisis has it
perks, I'm losing my mind but I get it Investing is a long-term game, so focus on the long run.
I can’t focus on the long run when I should be retiring in 3years, you see I’ve got good companies in
my portfolio and a good amount invested, but my profit has been stalling, does it mean this recession/unstable market doesn’t provide any calculated risk opportunities to make profit?
i feel the only way to make profit in the stock market is by working with an expert because it worked for me
I’ve been down a ton, I’m only holding on so I can recoup, I really need help, who is this investment-adviser
that guides you?
Definitely! All of this happened in less than a year after *STEPHANIE KOPP MEEKS* told me what to do. I
started with less than $100,000, and now I'm about 18,000 short of having a quarter million dollars!
She appears to be well-educated and well-read. I just ran a Google search for her name and came across her website, thank you for sharing.
Is the limit on Spousal Roth IRA reduced if money is saved in a 401K as pre-tax? So if husband earns 15K a year and contributes 7K to a pre-tax 401K to show 8K taxable, is the Roth IRA amount limited to 4k each or can then each do the full 7.5K assuming both are at least 50?
Roth-IRA contrib incl spousal IRA isn't reduced in any way even with a 401k or 401k-Roth. Entirely independent things.
I just added this comment to your 1 year old video about "How to avoid paying taxes on your Social Security" I copied it here because I didn't know if you would see it on the old video.
Guys,
The Supreme Court has determined the Social Security System has NO contractual obligation to pay retirees anything. The Social Security Act of 1935 makes NO reference to a SS Fund. The act creates a SS account to keep track of the money paid in. Section 8 explains the money collected is to be deposited into the US Treasury General Fund as tax receipts.
The last two phrases of the preamble (the very first sentence) of the act tell you EXACTLY the purpose of the SS Act. And I quote "; to raise revenue: and for other purposes. All the flowery platitudes about providing for some of the populace is just so much smoke screen. 'And for other purposes' leaves the door WIDE OPEN for congress to spend the money however the see fit.
Don't believe me? The act is online for you to read.
All the blathering about Congress spending the fund is just a heaping, stinking pile of BS, (a distraction!).
If you have Roth within your 401k which has met the 5 year rule & transfer to a new Roth 401 IRA account outside the 401k does the 5 year rule start all over again? Thank you.
If you started a ROTH 5 tax years ago you are good for life on all future accounts.
It’s like obtaining a bachelor’s degree. It is good for life.
People should open a Roth even if they only contribute $1 to start the clock ticking. The 1st Roth starts the clock ticking even if you open more later.
@@backcountyrpilotI should clarify… I have a 401k with. ROTH inside the 401k. 2024 will be the 6th year having ROTH inside my employers 401k. If i open a separate ROTH IRA at my bank in 2023 & roll the 401k Roth side into the Bank ROTH IRA, doesn’t the 5 year clock start all over again on the Bank ROTH IRA???
This isn't any news. Sure we already know we can contribute in the last year.
Spousal IRA if wife is still working? I guessed right. 😉