Articles by Herb White, CFP®, Paladin
Roth 401(k): A new option for tax-free retirement income
It’s nice to see another tax-savings option available—one that provides tax-free withdrawals after you retire. This one became available on January 1 and combines parts of two popular plans, a 401(k) and a Roth IRA. Called the Roth 401(k), it allows employees to designate their contributions as Roth contributions and offers a significantly higher annual contribution than the Roth IRA.
A new look at stretch IRAs
The twenty-first century brought an influx of new wealth to holders of IRAs, 401(k)s and similar plans. That meant new tax liabilities as well. But, there is a way to extend the tax-deferred status of an IRA long after your death. Called multigenerational or “stretch” IRAs, they also are a way to, in effect, speak from the grave regarding how and when your heirs receive distributions.
Roth 401(k): A new option for tax-free retirement income
It’s nice to see another tax-savings option available—one that provides tax-free withdrawals after you retire. This one became available on January 1 and combines parts of two popular plans, a 401(k) and a Roth IRA. Called the Roth 401(k), it allows employees to designate their contributions as Roth contributions and offers a significantly higher annual contribution than the Roth IRA.
With IRAs read the fine print
The devil is in the details, as they say, and, with IRAs, it pays to read the fine print. It’s usually the custodial agreement of your IRA that is overlooked.
Trust as IRA beneficiary
Trusts have been around since the 1500’s when English landowners used them to get free of creditors and feudal obligations. Today, of course, trusts are more comprehensive and complex, but used correctly, they provide the flexibility and control you want over your assets when you die.
What to do? Keep my 401k or roll it over?
At the top of your list of decisions to make when you are switching jobs or retiring is whether to stay in your employer’s 401(k) or roll it over into an IRA. In most cases, you wouldn’t want to simply cash in your retirement account, since you face paying income taxes and penalties. You also lose the ability to grow your investments tax-deferred.
