Tax rates are likely to go up under the Biden administration, and one hedge against this is to convert an existing IRA or 401(k) to a Roth IRA. You will have to pay taxes on the amount converted but then the IRA grows tax free. Talk to a tax advisor—and make sure you wait closer to year-end before doing it in case tax rates increase this year. Or let Monterey Bank or one of our other local banks walk you through the rules. There are few—for instance, there are no Required Minimum Distributions from this type of IRA. Talk to Monterey Credit Union, Monterey County Bank or many of the other local financial institutions to open an account, or a financial advisor for advice.
Monterey, CA Tips On ROTH IRA Conversions
Tax rates are likely to go up under the Biden administration, and one hedge against this is to convert an existing IRA or 401(k) to a Roth IRA. You will have to pay taxes on the amount converted but then the IRA grows tax free. Talk to a tax advisor—and make sure you wait closer to year-end before doing it in case tax rates increase this year. Or let Monterey Bank or one of our other local banks walk you through the rules. There are few—for instance, there are no Required Minimum Distributions from this type of IRA. Talk to Monterey Credit Union, Monterey County Bank or many of the other local financial institutions to open an account, or a financial advisor for advice.
Monterey, CA Tips On ROTH IRA Conversions
Tax rates are likely to go up under the Biden administration, and one hedge against this is to convert an existing IRA or 401(k) to a Roth IRA. You will have to pay taxes on the amount converted but then the IRA grows tax free. Talk to a tax advisor—and make sure you wait closer to year-end before doing it in case tax rates increase this year. Or let Monterey Bank or one of our other local banks walk you through the rules. There are few—for instance, there are no Required Minimum Distributions from this type of IRA.
Monterey, CA Seniors Should Make The Most Out Of Their Home Equity
Historically, the big hope was to retire debt free. However, experts who recently talked to Kiplinger’s Retirement Report say this may be a big mistake. Homeowners age 62 and older have a record $6.5 trillion of “tappable” equity, according to Data analytics firm Black Knight. Many financial planners believe that tapping wealth just before retirement makes sense if it is done for the right reasons. Suggested uses include paying off credit card debt, doing a remodel to make your house more senior friendly, buying long-term care insurance and pay the tax bill on a Roth conversion. In addition, you can use the funds to avoid taking early retirement from Social Security.