Core Insights - The article discusses the considerations for converting a traditional 401(k) into a Roth 401(k), particularly focusing on the implications of current and future tax brackets [2][5]. Current Tax Bracket - The current tax bracket is a known value, with an example provided of a combined income placing a couple in the 35% federal tax bracket [6]. - Variability in income from year to year can complicate the determination of the current tax bracket, suggesting that analysis should be conducted later in the year for accuracy [7]. Future Tax Bracket - Estimating the future tax bracket is more complex due to uncertainties over decades, including changes in career, income, and tax laws [8]. - Despite the uncertainties, reasonable assumptions can still provide useful insights for planning [8]. Roth Conversion Considerations - Roth conversions may be beneficial if the current tax bracket is lower than the expected future tax bracket, although being in a high current bracket generally suggests that conversions may be less advantageous [5].

Retirement Planning & Investment Strategies - Approximately 42 million people in the US will turn 65 this year, highlighting the increasing need for retirement planning [1] - Rolling over a 401k into a checking account is considered dangerous due to potential taxes and penalties if not rolled into a qualified account like an IRA [3][4] - Health Savings Accounts (HSAs) are described as triple tax advantage accounts (tax-free in, tax-free growth, tax-free out for qualified medical expenses) and can serve as supplemental retirement accounts [8][9] - Overfunding an HSA results in a 6% penalty per year on the excess contribution [10] - Only 6% of people with HSAs have activated the investment function, missing out on potential market growth [16] Financial Habits & Long-Term Planning - Unconscious spending habits can lead to financial crisis; focusing on income, expenses, and where money is going is crucial [21][22] - Small business owners should prioritize saving for retirement, even with small amounts, and avoid relying solely on their business as their retirement plan [23][24] - A long-term planning horizon (10 years or more) improves the chances of a better retirement outcome [25][26] - It's important to understand annual spending needs 5-10 years before retirement to effectively plan for the cost of living in retirement [37] Retirement Account Considerations - When inheriting a Roth IRA, children must withdraw all the money within 10 years, but the withdrawals are tax-free [33][34] - For those required to take Required Minimum Distributions (RMDs) from an IRA, Qualified Charitable Distributions (QCDs) can be a tax-efficient strategy [29][30][31]

This is Ask Yahoo Finance Anything, and we mean anything. I'm here with a powerhouse panel ready to answer your personal finance questions. Jeffrey Levine is Focus Partners Chief Planning Officer. Rian Han is founder and CEO of retirement platform Silver, and Lzetta Rainey Braxton is founder and CEO of Lzetta and Associates. You've sent in questions on student loans, retirement, credit cards, even buy now pay later. And we've got answers to help you get your finances in order. And reaching that goal often s ...

Core Points - The article discusses the calculation and planning of Required Minimum Distributions (RMDs) for retirement accounts, specifically for individuals turning 73 in 2027 [6][4][10] - It emphasizes the importance of understanding the life expectancy divisor from the IRS's Uniform Lifetime Table, which is crucial for determining RMD amounts [2][11] - The article highlights the flexibility in withdrawing RMDs from multiple IRAs, allowing for aggregated withdrawals from any single account or combination of accounts [13][12] RMD Calculation - To calculate RMD, divide the account balance as of December 31, 2026, by the life expectancy divisor; for example, a $1 million balance divided by 26.5 results in an RMD of approximately $37,736 [7][1] - RMDs must be taken by the end of the calendar year, with the option to defer the first RMD until April 1 of the following year, which could lead to two distributions in one year [9][10] Account Types and RMDs - Traditional IRAs, 401(k)s, 403(b)s, and other tax-deferred accounts are subject to RMDs, while Roth IRAs are not included in the calculation [3][6] - RMDs for 401(k) accounts must be taken from each account individually, unlike IRAs where the total RMD can be taken from any single account [14][13] Planning Considerations - The article suggests that retirees should consider their overall retirement income, including Social Security and pensions, when planning for RMDs [17] - It also notes that if retirement expenses exceed the RMD, additional withdrawals may be necessary to meet financial needs [12][17]

Whether you're already retired or planning for it, the one thing you don't want to worry about is the money. ...

Core Insights - Retirement planning is complex and often causes anxiety due to uncertainty about savings and timing [2][3] - A proactive approach to retirement involves not just saving money but also planning for spending [2][5] Group 1: Retirement Planning Basics - The average person tends to retire three years earlier than initially planned, indicating the need for early preparation [4] - The focus should be on replacing income rather than accumulating a specific amount of savings, such as $1 million or $2 million [5][6] Group 2: Key Retirement Metrics - The "retirement longevity number" is crucial, which combines expected retirement age, life expectancy, and annual spending needs [5] - Factors like mortgage status and Social Security benefits significantly influence retirement spending and should be considered in planning [6]

Retirement Planning - Starting early and saving more can help avoid common retirement regrets [1] - Building lasting financial security leads to greater freedom in later years [1]

Listen and subscribe to Decoding Retirement on Apple Podcasts, Spotify, or wherever you find your favorite podcasts. After decades of being defined by high-powered roles, influence, and constant decision making, the transition to life after work for corporate executives can feel disorienting. “That can be a tremendous shift for individuals, especially with the audiences they can command and the importance they’ve had from their roles,” said Amy Permenter, head of corporate executive planning at the Planni ...

Age 65 is a major transition for many individuals as they shift to thinking about retirement and begin to contemplate benefits like Social Security and Medicare. Retirement planning means you’ll have to consider taxes, healthcare, your retirement budget and more. With $1.5 million in an IRA and two Social Security payments to rely on, a married couple should have some flexibility for retirement, but their individual circumstances and how they strategize can make a big difference in their quality of life. H ...

Working in your 50s can be scary and stressful: retirement is getting closer, and you may be worried you don’t have enough savings. Plus, what if things suddenly take a turn and you lose your job sooner than expected? Will another company take a chance on somebody your age? Imagine Lauren, who is 55 and harboring exactly those fears. She’s a single mom, and her two teenage children will be applying to college soon. Must Read Even though she makes $90,000 a year, she lives in a city with a high cost of l ...