What are the important things to consider when deciding whether to contribute to an IRA and 401(k) versus a Roth IRA and Roth 401(k)? What do you need to know about the different tiers of IRA beneficiaries? Robert "Bob" Powell sits down with Ed Slott, IRA Expert, Professional Speaker, and Author, who makes his case for Roth conversions. Ed goes into detail about the complexities of IRA beneficiaries and how to maximize your tax bracket. Find out how legislation such as Secure Act 2.0 impacts your retirement savings in this week’s episode of Decoding Retirement. The complexities of IRA inheritance (:50) Who owns your IRA after you die? "IRAs were always tough to work with because it was always this minefield of rules…" The 3 tiers of IRA beneficiaries (3:00) What are the differences between designated, non-designated, and non-eligible designated beneficiaries? "It’s like having 3 tiers on the titanic, they’re all going down." Evaluating whether to do a Roth IRA conversion or not? (13:00) To evaluate whether to contribute to a Roth IRA or traditional IRA, you must consider where you think your tax bracket will be when you retire. "The whole Roth conversion thing is a big bet you’re placing on where you think your future tax rates will be."
Video highlights:
:50 – The complexities of IRA inheritance
3:15 – The 3 tiers of IRA beneficiaries
6:30 – Required minimum distributions
9:15 – Maximizing your tax bracket
11:50 – The case for Roth conversions
15:15 – How to decide whether or not to do a Roth IRA conversion
21:05 – The power of life insurance Retirement planning doesn’t mean locking up your money for a rainy day and forgetting about it.
Planning your future means reacting to events today. Decoding Retirement gives you the tools to navigate the years ahead, and take action now! Yahoo Finance’s Decoding Retirement is hosted by Robert Powell, and produced by Austin Rivera. Find more episodes of Decoding Retirement at https://finance.yahoo.com/videos/series/decoding-retirement. Thoughts? Questions? Fan mail? Email us at yfpodcasts@yahooinc.com.
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