Hi Jan,
We hope you had a relaxing Thanksgiving and enjoyed some time with family and friends. As we ease back into our regular rhythm, it is a good time to revisit some of the bigger questions about how to manage taxes in retirement.
This week’s featured article explores whether it makes sense to pay taxes now to save on taxes later. That question sits at the heart of Roth conversions and tax planning more broadly, and the article unpacks the key considerations that make or break this decision.
We are also revisiting one of our foundational articles on the difference between Roth and traditional retirement accounts, especially when it comes to deciding where to contribute and how to allocate your investments.
Together, these pieces help clarify how your account structure and timing decisions can shape your long-term flexibility.
| | | | Turning Today’s Tax Bill Into Tomorrow’s Flexibility with Roth Conversions For most people, taxes feel like a problem for “future-you.” So, the idea of voluntarily paying taxes today can feel counterintuitive. Yet this is exactly the decision behind a Roth conversion, and it stops people in their tracks for good reason. You are choosing to pay taxes early on purpose, which feels odd until you realize how much control it can buy you later. You pay taxes now, at your current rate, so you can enjoy more flexibility and potentially lower taxes later in life.
By Retirement Researcher | | | | Should You Use a Roth or Traditional Retirement Account? Retirement accounts are powerful savings tools. Whether it’s an IRA, 401(k), or 403(b), they can help you minimize the impact of taxes and get the most out of your savings.
But you have a choice to make.
There are (basically) two types of retirement accounts: traditional and Roth. The difference between these two accounts comes down to how they allow you to minimize your tax burden.
By McLean Asset Management
| | | | Your Tax Questions Answered: 401(k)s, Roth Conversions, and RMDs
This week’s episode of Retire With Style continues our listener Q&A series, with a focus on Roth conversions and distributions from qualified accounts. Wade and Alex break down common questions about the Rule of 55, how and when to convert assets, and why tax planning is not just about the numbers. If you have ever wondered whether a Roth conversion is worth it, this episode is a great place to start.
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