Quote:
Originally Posted by CoachKandSportsguy
just checked the ROTH allowances for funding from salaries, and we aren't allowed to fund new, actually got into IRS violation and had to re-characterize the account. . as far as a conversion, that is best when not working and have a lower tax rate than when you are working with a high tax rate. . . So for us, the ROTH in any form would be too expensive. .
However, recently, the IRS and other investment houses have created 401K roth accounts, which you can fund after the 401K is full, with after tax dollars with the same tax free benefits. This seems like a no brainer, but the same total applies to > 50 at @25K. With a 401K Roth, the income grows tax free, assets always grow tax free until sold. But a Roth 401K has an RMD, even though its tax free. .
so, the key is in a high tax bracket, put as much away in qualified plans, 401K, especially with matching. When transitioned to a lower tax bracket, then conversions make sense, or even using IRA money to defer Social security and putting what you can into the ROTH, while your $30,000 SS income is growing at 3-4 % per year. . the often quoted 8% includes continuing to work. . . screw that!
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About CoachKandSportsguy
Biography
Golfing and sports couple with a new begonia available for rent until we relocate down
Location
Marsh Bend
Interests
Golfing and sports for both, and chasing soccer and any other ball around for sportsguy
Occupation
medical data for coachK and finance, modeling, trading and investments for sportsguy
You seem quite knowledgeably in finance. Are you presently selling financial instruments in the state of Florida ? Are you a resident yet ? If you are selling what are your credentials ? Education, licenses, fiduciary, specialties. etc.?