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How Wealthy People Get More Tax-Free Growth
Manage episode 358554237 series 3437793
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Do you think you make too much money to contribute to a Roth IRA or that you’ve out-earned your eligibility for a tax-free growth? You might be surprised to learn you can still take advantage of a Roth account regardless of your income.
In this episode, Alex outlines who is eligible for Roth conversions and makes suggestions for when and how to do Roth IRA conversions.
In this episode, you’ll also hear:
Roth contribution vs. Roth conversion
Tax implications of Roth conversions
Multi-year strategy and goals for Roth conversion
Must-listen moments:
[00:01:33] The first thing you need to know about Roth conversions is that anyone and everyone who has a traditional IRA or traditional qualified retirement plan, like a 401k, 403B, or 457 plan, is eligible.
[00:06:26] It can be really helpful to look at past tax years and see what tax brackets you were in and see if you can notice any patterns or trends. Do note that even if you don't expect to be in a higher tax bracket in the future, a Roth conversion can still make a ton of sense for you.
[00:08:18] There are a ton of reasons for Roth conversions…but you need to be crystal clear on your reasons for doing one in any calendar year as there can be some goals which a Roth conversion does not help.
For more detail on financial topics curated just for freelancers, visit www.freelancefinancefix.com
You’re also invited to connect with me on LinkedIn at https://www.linkedin.com/in/alexmlynch/
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