Photo credit: Grok The post I’m 55 With $1.2 Million in My 401(k). Should I Pivot to Roth Contributions? appeared first on SmartReads by SmartAsset.

Roth Someone who already has large pretax balances and wants to minimize RMDs in retirement Earns $160,000; 22% tax bracket (married). Approaching retirement with a $3.2 million 401(k) balance.

With this new SECURE 2.0 change, the prior-year 12/31 value of your Roth accounts can be disregarded when your year-of-retirement RMD is calculated. Example: Simone, age 75, is employed by ...

It is qualified if you: take the distribution after age 59 1/2; made your first Roth IRA contribution at least five years ago; are beyond five years of each Roth conversion; take up to $10,000 ...

Making tax-free withdrawals from a Roth IRA depends on when — and what — you’re withdrawing, or else taxes and penalties could apply. Many, or all, of the products featured on this page are ...

The matching contributions provided by an employer were historically placed in a traditional 401(k), while employee contributions were held in the Roth 401(k). The SECURE 2.0 Act changed this in ...

If you click on links we provide, we may receive compensation. Fidelity and Wealthfront top our list of Roth IRAs that cater to self-directed and hands-off investors, respectively David is a ...

2. Lump-sum distribution You can take a lump-sum distribution of the funds without opening an inherited Roth IRA, allowing you to receive them all at once. Earnings are not taxable if the account ...

Roth IRAs offer unique benefits but also have drawbacks like income restrictions. Consider a Roth IRA if your tax bracket will be higher in retirement than it is today. Investing in a mix of Roth ...

You can withdraw contributions from a Roth account anytime, tax- and penalty-free. If you want to withdraw earnings tax-free, though, you must be at least age 59-1/2, and you must have owned the ...

Sammy Roth is the climate columnist for the Los Angeles Times. He writes the twice-weekly Boiling Point newsletter and focuses on clean energy solutions. He previously reported for the Desert Sun ...

The Roth IRA — a popular retirement account — is similar to a traditional IRA in that you can regularly contribute to the account and watch your investments grow so you have a nest egg to tap ...