Should I Convert My 401k To A Roth IRA?

Рет қаралды 18,651

5 ай бұрын

Should I Convert My 401k To A Roth IRA?
In this video, we're diving into a crucial financial decision many individuals face: the prospect of converting a traditional 401k to a Roth IRA. Before making such a significant move, it's essential to understand the potential benefits and drawbacks.
🤔 Is converting to a Roth IRA the right choice for you? Join us as we explore the factors that can influence your decision, including tax implications, retirement goals, and individual financial situations.
📊 Pros of Converting to a Roth IRA:
Tax-Free Withdrawals: Roth IRAs offer tax-free withdrawals in retirement, providing potential tax advantages compared to traditional 401k's.
Diversification of Tax Liabilities: Balancing tax diversification can be a strategic move for long-term financial planning.
No Required Minimum Distributions (RMDs): Roth IRAs do not have RMDs during the account holder's lifetime, offering flexibility in managing retirement income.
📉 Cons to Consider:
Upfront Tax Costs: Converting a 401k to a Roth IRA triggers immediate tax liabilities, which can be a significant financial consideration.
Current vs. Future Tax Rates: Evaluating your current tax bracket against your expected future tax bracket is crucial in determining the potential benefits of conversion.
Individual Financial Situation: Your overall financial health and goals play a pivotal role in deciding if conversion aligns with your retirement plans.
*Free Retirement Download: The Checklist to Retirement:* 📊
pearlwealthgroup.com/
Ready to schedule your virtual consultation, click here: pearlwealthgroup.com/contact/ or email us at info@pearlwealthgroup.com
**Enroll In Our Course: Can I Retire: A Foundation To Your Retirement Journey: drew-s-site-958e.thinkific.co... ** 🖥️
Retirement income strategies and retirement income planning are two big pieces to anyones retirement planning calculator. Whether you are wanting to know strategies for "retirement planning at 30", "retirement planning at 40", "retirement planning at 50", or even "retirement planning at 60" understanding how much retirement income that you want versus how much you need gives you a roadmap to follow to and through retirement.
Here at Pearl Wealth Group, we run a trademarked retirement investment and retirement income plan for individuals and families who are wanting to retire called "Your Financial EKG™." What we are trying to visualize is how long a persons retirement savings are going to last throughout retirement. If you are looking for early retirement planning tips or trying to saving for retirement in your 50's, You Financial EKG™ is a great tool to help you understand where you are retirement planning. Retirement planning and retirement income strategies shouldn't be complicated. They should just be done right.
Click Here For More Retirement Planning Videos: bit.ly/3wH3mgb 🙌
**Ready to get your personalized Financial & Retirement EKG: pearlwealthgroup.com/ **🚀
**Visit our Website: pearlwealthgroup.com/ ** 🖥
**Connect with us on Facebook: / pearlwealthgroup ** 👍
**Follow and Connect with Drew on Linkedin: / drewblackston 🙌
**More Retirement Information Here: pearlwealthgroup.com/blog/ ** 🧐
**Meet Your Retirement Planning Team: pearlwealthgroup.com/about/ ** 😎
**Worried That Your Retirement Strategy Is Missing Something: pearlwealthgroup.com/services/ ** 🤔
❌ *Please make sure you talk with your CPA, Financial Advisor, Retirement Planner, or Investment Advisor Representative, before implementing any content from this channel. All videos are for informational and educational purposes only. None of the content, comments, responses, information, or any other item on this channel constitutes financial advice or recommendations. Please call Pearl Wealth Group at 813-807-5060 to go through your Retirement Income, Retirement Investments, or Retirement Plan in more detail.* ❌
Pearl Wealth Group
Drew Blackston, CRC® & RFC®
Office: 813-807-5060
Info@pearlwealthgroup.com
pearlwealthgroup.com/
Getting you to Retirement, through Retirement, & protecting YOUR ability to stay in Retirement!
#retirementplanning #retirement #financialfreedom

Пікірлер: 21

@yourfinancialekg 6 ай бұрын

*Free Retirement Download: The Checklist to Retirement:* 📊 pearlwealthgroup.com

@StephenWampler 5 ай бұрын

You can withdraw your converted amount, not the gains, after 5 years even if under 59-1/2. That's another way around the 59-1/2 rule for 401s and IRAs.

@yourfinancialekg 5 ай бұрын

Yes!

@masoncnc 5 ай бұрын

Great audio quality on this one. I heard about some mathematician computer programmer that figured out that Roth IRS are loved by the government as a way to get more taxes out of the people. Really? How many people are going to be in a equal or higher tax bracket in retirement realistically?

@yourfinancialekg 5 ай бұрын

Good comment!

@JustWill99 4 ай бұрын

Thanks, Drew. Would those 6 Roth IRA accounts typically be at the same financial institution or would they need to be at different places?

@yourfinancialekg 4 ай бұрын

I would say the same place just to keep it organized

@brandon8531 5 ай бұрын

Drew, I think I understand this. But to confirm, the amount you convert is taxed at your marginal tax rate, correct?

@yourfinancialekg 5 ай бұрын

Yes

@KLFD29743 5 ай бұрын

Drew why is it that seldom do FP ( such as you) suggest that 401k should be transferred to Roth 401k. Isn’t this the same thing or does the transfer/conversion has to be specifically Roth IRA? Please explain.

@yourfinancialekg 5 ай бұрын

I am assuming that the client is retired. Other factors could keep the 401k in 401k form just as a Roth (ex. under 59.5)

@alrocky 5 ай бұрын

Not all 401(k) plans allow t-401(k) conversions to Roth 401(k).; tax is due on that amount converted and if tax is taken from the 401(k) then early withdrawal penalty applies. If employees has t-401(k) and wants Roth 401(k), better alternative is to simply contribute to Roth 401(k) instead of converting.

@darineedtippimanchai3865 3 ай бұрын

Hi Drew, I accidentally made a mistake and rolled 401k into roth IRA, and my tax rate is 24%. Is that super stupid or there is a good thing there? I am 38. I understand i will need to pay tax but is there penalty or something.. supper scared

@yourfinancialekg 3 ай бұрын

It's not a mistake if it went into an IRA from a Traditional 401k. No taxes on that kind of rollover.

@darineedtippimanchai3865 3 ай бұрын

But it went Roth IRA, not traditional IRA😢

@kyebo1776 5 ай бұрын

Well it has to go from a 401k to an ira if you leave your company

@Bill-vk7fh 5 ай бұрын

Only true if less than a certain amount, like 5k or so. Some companies allow you to keep a 401k above this amount.

@Cfrancis1968 5 ай бұрын

You can keep your 401k in retirement. You just cannot contribute more to it. You can still reallocate, withdraw or convert funds. Most people convert from a 401k to an IRA after retirement due to limited investment choices in company 401k's.

@kyebo1776 5 ай бұрын

Okay yes. True. I always rolled to ira,s bc of more choices and to keep things streamlined and a lot less fees

@yourfinancialekg 5 ай бұрын

Thanks for commenting!

@kyebo1776 5 ай бұрын

thank you for your content! call me out if i am wrong! thx! @@yourfinancialekg