Відео

U cant use your money the way you want too, I end paying last year 7,0000...next year probably 50000 IRS. I USED IT AND STILL USING IT,, I WILL DIE ONE DAY. I TRAVEL NOW

I'm in the position of having a significant amount in traditional IRA'S. My only realistic option is to pay the taxes from the conversion, but how would I know if it's beneficial

Good morning, does your standard deduction reduce the amount of your Roth conversion? I have no income, so I’m wondering if I convert up to the standard deduction if that means I pay zero tax

Sir, your explanation is the cleanest, clearest, comprehensive,and most concise explanation I have experienced over viewing many videos from other financial experts on UA-cam. Thank you! You are appreciated!

Great show. thanks

We are almost certain of a 22 percent cut in SS benefits in about 10 years when the SS Trust Fund runs out of money. This changes the break even age by a few years. Why is this not considered?

My employer automatically withdraws a percentage every paycheck, in order to reach the yearly limit ($23k 2023).. but I'd like to change that to add the $7.5k catch-up. How difficult is it to change.. or is it HR specific? But say you will turn 50 on December 31, 2023, then how/when should you add the extra catch up amount for 2023.. or do you have to be 50 for the full calendar year in order to be eligible (i.e. 2024)?

The title states "Retiring at 62" then your math at 18:00 talks about a bigger pull from savings if he claims Social Security at 62 vice waiting to claim. This appears to also assume he will continue working. If he in is not working, and does not claim Social Security, that will be the bigger draw on his savings. Of course continuing to work longer makes your money last longer. Am I missing something?

Wait... 401k is still taxable after retirement??

If you're subject to WEF, age 70 is the ONLY logical solution

the answer isn't "what gives the most money" the time value of money needs to be accounted for, in other words, money gained in ones 60s is likely much more valuable than money in their 80s. when you consider this, and the memories which can be made by having the money in the youth of your golden years it's clear that drawing early is more "valuable"

I'm claiming SS @ 62, I don't trust the gov to watch out money.

My income is ok but my spouse income is none for many years . Can she still claim for half of mine and I still get 100 percent

Social security?

Ten minutes of excellent points diluted to 30 minutes of vamping, filler feel good empty phrases, “let’s keep this simple..” delaying the topics. Too tedious to watch. Use the chapters feature to reduce the filler.

Question: I have huge gains above basis in my 401k. If I roll it to an IRA, I have to realize those gains, be out of the market while check is sent and then I’ll have to reinvest at a much higher basis in a limo sum. Is this a concern? Is there a way to avoid this like an-kind 401k to IRA rollover?

Get to the point dude.

Pay for Roth conversions with RMD

Solutions, please for this scenario

On the appeal for retirement you said they might adjust. Is it not automatic if you are below the limit due to retirement?

Good video. On item 4 if you just withdraw from your IRA to spend you get the same IRMAA benefit with or without conversion to Roth.

Very worthwhile watch. Your explanations are super clear. Appreciated!

Pretty sure when I’m 70, I’m not going to have a desire to do the things I want to do when I’m 60.

This was an excellent presentation. So on target these 2 scenarios. Thank you!

Congratulations!

Incredibly informative. I was particularly surprised to learn about the potential tax surprise that many people are unaware of. It's a great reminder of the importance of understanding the nuances of these retirement plans.

I have an annuity that structured the same as SS.. even though I’m still working at 62, I started taking it this year.. it pays me $3k per mth for life.. if I waited until 65, it would have paid me $3.4/mth.. but I wanted to start enjoying that extra money now, as I’m using it to get my house ready for retirement yrs… so u do t get hit with big home repairs once I retire, plus nice vacations

The government is desperate for you to delay SS and to keep paying in and work til the day you die. 63 for me.

Checking and savings have already been taxed. So I don’t understand why they are in a taxable bucket. They can be used without additional income tax. Taxable may generate tax by dividends or selling. Dividends and selling will be taxed a lot less than tax deferred. They would not be considered ordinary income so those taxes aren’t even measured on the same scale. Essentially, if you aren’t working, either draw from tax deferred or roll it over to a Roth up to your projected tax bracket… or to your future needs if you are pre59.5 and will need the money in 5 years. Also consider your tax bracket and aca subsidies for health insurance.

You used “Recognized gains” repeatedly. Did you mean “realized”?

It all depends to every person about their financial standing whether retiring @ 62 or 67. Always have something for rainy season.God bless

If taxes stay the same it doesn’t make sense to do a Roth conversion? It’s the growth of the money over time that gives most folks large tax bills not their contributions. 4 doubles = 35-40 years of growth…. 1. Double 200k you get 400k 2. Double 400k you get 800k 3. Double 800k you get 1.6m 4. Double 1.6m you get 3.2m I’d much rather convert 200k in Roth even if tax brackets decreased in the future rather than leave it in traditional. All that being said if I can afford to convert and pay the tax bill today. It’s almost always better to convert. I don’t understand how “experts” can’t understand the entire problem

This is for poor people

If RMD from 401(k) and SS take you into IRMAA land, what then?

Great video

Take it at 62 especially if you are a man. Life expectancy is 75 for white men (68 for black men). If you live to 70, you will most likely live another 10 years while only 25% will make it to 90. Those aren't great odds. Get the money as early as you can and enjoy your 60s and 70s. Expenses are greater early on as people generally travel a lot less as they get older. Also, having more money is always nice, but you can't take it with you.

While I'm working doing Roth conversions would be taxed at the highest rate; after I retire, same issue; I'd have to convert too much for it to make a difference, and then there's AMT. No matter how I look at Roth IRA, I take too big of initial tax hit up front vs on the backend once RMDs hit. My goal in retirement is to stay at or below the 24% tax bracket; and calculating my estimated RMDs each year to see if I have to make adjustments along the way. Any extra cash I have, I have to see where to put it, i.e., can I put some portion of excess cash into a Roth IRA without violating the contribution rules...

This was a very informative video. Thank you!

what about the household maximum? ss increases the longer you wait but the married couple limit kicks in years before age 70

Cons of IRA rollover: it kills the ability to do tax free back door Roth conversions ($8k/yr depending on age ). Search for “reverse rollovers for backdoor roth” in case you already rolled over. The reason is that aftertax IRA to roth IRA is only taxed on the gains unless you also have a pretax IRA (for example from a 401k rollover!). With the extra rollover ira, the roth conversion is taxed on the amount converted (not just gains) proportional to the pretax IRA.

🎉congratulations!!

My spouse is nine-years younger and she can retire with a pension at 50-years old. Our strategy is to not take a survivor benefit from pension to maximize the payout. Also, I will not collect social security until 70-years old to maximize the social security payout and eventual survivor benefit. I plan to take out a modest life insurance policy to cover the unlikely event my spouse passes away early.

I also think it is important that traditional IRAs are considered income upon withdrawal. Thus, it is not JUST the tax bracket or the Widow's tax but also the fact that if one does not convert and has money withdrawn from a traditional IRA/traditional 401(k) or 403(b0 it could likely increase Medicare Premiums, Medicare Part D and increase the risk of Social Security being taxed. And you HAVE to take out some money whether you need it or not from the traditional and you don't have that issue with the ROTH. If you want to let it grow for your kids or other reasons, you have that option with a ROTH

I wish you also talked about what sort of taxes one would pay on contributions vs earnings. Do both get treated the same as ordinary income?

Poor Jim.... He only has 1. 5 million$$$ Poor Jim. this example is ridiculous....

What about the effect on your medicare payments if you are within 2 years of age 65 (or 63)? Would a Roth conversion potentially hurt this calculation so that you have to pay more for Medicare longterm?

Moral of the story: more Roth contributions and draw down pre tax as quickly and efficiently as possible.

It's not worth waiting after 62. Your health will start going down hill so, take it at 62 you won't regret it.

It only grows by 8% until you are 70, after that it doesn’t grow.

My husband tried to convert his 401K to a roth conversion but was told he could not do the conversion since he is actively working. He could do that once he retires. Confused about this after watching this video.