Are you looking to save for retirement while minimizing your tax burden? If so, a Roth IRA may be the perfect investment vehicle for you. However, it's important to be aware of the contribution limits and income thresholds that can impact your ability to take full advantage of this tax-advantaged account.
The Roth IRA income limit to make a full contribution in 2024 is less than $146,000 for single filers, and less than $230,000 for those filing jointly. If you're above these thresholds, you may still be able to contribute to a Roth IRA through a backdoor conversion, which involves making nondeductible contributions to a traditional IRA and then converting them to a Roth IRA.
Circumventing the Roth IRA MAGI limit is a multistep process that should be started now. By planning ahead and executing the necessary steps, you can ensure that you're able to take full advantage of the benefits of a Roth IRA, regardless of your income level.
The SEP IRA is one of the best ways for small businesses and individual business owners to save for retirement, and they can contribute even more than the limits of a traditional or Roth IRA. This can be a valuable tool for high-income earners who are looking to maximize their retirement savings.
Changes coming to IRAs — Roth and traditional — and 401(k)s may mean more money for you in retirement. By staying informed about the latest developments in retirement account rules and regulations, you can make informed decisions about how to best save for your future.
A Roth IRA is a smart idea if you expect to be in a higher tax bracket in your later years. By paying taxes on your contributions now, you can enjoy tax-free withdrawals in retirement, when you may be in a higher tax bracket.
I took a new approach to savings this year, and I'm going to do it again in 2025. By setting specific financial goals and committing to a savings plan, you can ensure that you're on track to meet your retirement objectives.
The contribution limits for 401(k)s, 403(b)s, IRAs, and HSAs will change for 2025. Here's what you need to know to make sure you're maximizing your retirement savings and taking advantage of any potential tax benefits.
Editor's Note: This story comes from Wealthramp. Despite its questionable name, a backdoor Roth IRA is a completely legal way to minimize personal taxes. By understanding the rules and regulations surrounding backdoor Roth IRAs, you can ensure that you're taking full advantage of this tax-saving strategy.
Use NerdWallet's free Roth IRA calculator to estimate your balance at retirement and calculate how much you are eligible to contribute to a Roth IRA. By utilizing online tools and resources, you can make informed decisions about your retirement savings strategy and ensure that you're on track to meet your financial goals.
