Core Insights - A significant disconnect exists between Americans and their retirement savings, with 25% unable to name their retirement account provider [1][8] - The number of dormant workplace accounts has increased to over 30%, up from 21% in 2012, indicating a growing issue of "forgotten" accounts [1] Survey Findings - The survey conducted by PensionBee involved 1,000 U.S. retirement savers, revealing that 40% consult their account provider for questions, while only 4% use AI for retirement inquiries [8] - A large portion of respondents (31%) check their retirement accounts only once or twice a year, and 9% never review their allocation or do so every three years [8] - 55% of respondents have never consolidated old accounts, leading to fragmented savings across multiple providers [8] Risks of Inactivity - Inactive accounts face two major risks: asset misallocation, where portfolios may become misaligned with a saver’s risk tolerance, and automatic rollover of dormant accounts under $7,000 into Safe Harbor IRAs, which may not grow effectively [3][8] Company Overview - PensionBee is a leading retirement savings provider managing $10 billion in assets and serving over 300,000 customers globally, focusing on simplicity and transparency [5] - The company offers various IRA options, including Traditional, Roth, SEP, and Safe Harbor IRAs, with ETF-backed portfolios [5]

At what point should you stop contributing to your investment and retirement accounts and just let time and compound interest do its thing? I'm 39 (married with a 1-year-old) with $587,000 in a 401(k)/TSP and $135,000 in a Roth IRA. My employer matches up to 5% of 401(k) contributions. I'm planning to sell a rental property in the spring and expect to net about $250,000 after fees and taxes. I also own a primary residence with a $700,000 balance at 6.25% (VA loan). My mortgage payment (not including insuran ...

When you're in the process of building retirement wealth, it's important to choose a home for your savings carefully. And that may mean choosing between a traditional retirement account versus a Roth. The upside of traditional IRAs and 401(k)s is that your money is contributed on a pre-tax basis, allowing you to shield income from the IRS. Roth IRAs and 401(k)s, on the other hand, are funded on an after-tax basis, so there's no immediate IRS benefit to enjoy. Where to invest $1,000 right now? Our analyst ...

With the arrival of tax season, if you are thinking of rolling your 401(k) into a Roth account, financial guru and money expert Suze Orman says you might want to think twice — especially if you’re considering a massive conversion. When Gina, a 56-year-old retiree, phoned into the Women & Money podcast, Orman didn’t mince words. After Gina laid out her strategy — moving her $1.6 million pretax 401(k) into a Roth 401(k) and eventually rolling it into a Roth IRA — Orman dismissed the idea, calling it “craz ...

Smart tax planning doesn’t end when you retire. If anything, it takes on added importance when you’re on a fixed income and have fewer opportunities to boost your finances. Not making the right tax moves can be a costly mistake that lasts throughout your retirement. Here are four tax moves retirees often regret not making, according to financial planners. Also see nine strategies to minimize the taxes you pay on retirement savings. Roth Conversions One move to consider making in retirement is converti ...

Core Insights - A Roth conversion is a trade-off involving immediate tax payments for potential future tax benefits [1] Group 1: Roth Conversion Overview - A Roth conversion transfers funds from a traditional IRA to a Roth IRA, with the converted amount taxed as ordinary income in the year of conversion [2] - Future qualified withdrawals from a Roth IRA are tax-free, providing a long-term tax advantage [2] Group 2: Tax Implications and Timing - It is not necessary to convert the entire IRA balance at once; multiple smaller conversions can be more tax-efficient [3] - Large conversions may push individuals into higher tax brackets, negating potential long-term benefits [3] Group 3: Advantages of Roth IRAs - Roth IRAs do not have required minimum distributions (RMDs) during the owner's lifetime, unlike traditional IRAs which require RMDs starting at age 73 [4] Group 4: When Roth Conversions are Beneficial - Roth conversions are most advantageous during low-income years, such as early retirement or career transitions, when individuals are in lower tax brackets [5] - Additional scenarios where conversions may be beneficial include expecting higher future tax rates, having cash available to pay taxes outside the IRA, and wanting to reduce future RMDs [6] Group 5: Potential Drawbacks of Roth Conversions - The primary drawback is the immediate tax liability, which can be substantial for large IRAs and may lead to higher tax brackets or increased Medicare premiums [7]

Quick Read Ramsey and Orman rarely agree but both prioritize maximizing Roth IRA contributions and eliminating debt before retirement. Roth IRAs eliminate future tax uncertainty and required minimum distributions for original account holders. Paying off high-interest debt delivers risk-free returns equal to the eliminated interest rate. A recent study identified one single habit that doubled Americans’ retirement savings and moved retirement from dream, to reality. Read more here. Dave Ramsey an ...

The oldest members of Gen Z are nearing 30. Born between 1997 and 2012, the bulk of this young generation is likely in the workforce — at least in some capacity. While they might be working hard for the money, it doesn’t mean they’re getting rich. Gen Z and millennials only account for 10.7% of the total wealth in the U.S., according to a recent Smart Asset report. In comparison, baby boomers hold 51.1% of the total wealth, while Gen X is responsible for 26% of the total wealth. This has changed drasti ...

KaterinaDalemans / Envato Think your Social Security check is yours to keep? Think again. Nearly half of all beneficiaries have some form of tax liability on their benefit payment, according to Pew Research. Simply put, if you earn a middle to high income, you’re likely to owe some of your benefits back to the government (1). Must Read Depending on your family’s combined provisional income, you could owe taxes on either 50% or 85% of your benefits (2). As of 2026, the combined provisional income thres ...

Roth conversions to secure tax-free withdrawals during retirement are gaining popularity as Gen X gets closer to retirement, but financial advisers warn that the decision to convert should be carefully considered. Roth conversions are asset transfers from a pre-tax retirement account such as a traditional IRA or 401(k) into a Roth IRA. People pay income tax on the converted amount in the year of the transfer, but the money grows tax-free and withdrawals during retirement are tax-free. Roth accounts also a ...