#494 - The Roth Opportunity

If you’ve been wondering how Roth IRAs work in retirement you’ve come to the right place. All this month we’ll be exploring Roth IRAs–how they work, the 5-year rule, and the differences between Roth conversions and contributions and Roth IRAs and Roth 401Ks.

My goal with this series is to level the playing field so that you can understand the opportunities that Roths provide. On this episode, you’ll learn how you can use a Roth to enhance your retirement. If you are ready to start optimizing your retirement press play.

Use Roths to optimize your tax situation in retirement

Many of us baby boomers feel like we’re late to the Roth game. Roths only began in 1997 and it took a while for them to gain popularity. They didn’t fit into the deferring taxes paradigm, so many of us didn’t appreciate the value that Roths bring to the retirement table.

Roths are different than traditional IRAs and 401Ks because they use money that has already been taxed rather than pretax dollars. This means that in retirement you’ll be able to withdraw tax-free money from your Roth accounts.

These accounts give you a flexibility that you can utilize to optimize your tax planning. Listen in to hear how you can use Roths to enhance your tax situation in retirement.

As with any other retirement planning tool, it is important to keep in mind what problem you are trying to solve. Are you looking to lower your distributions? Avoid tax hikes? Avoid IRMAA surcharges? When you consider the intent you have then you can use your agency to find the pathways available.