|
US prosecutors allege two employees and a contractor conspired to illegally ship servers through south-east Asia
|
|
Weaver names pair of tax partners; RubinBrown appoints assistant managing partner; and more news from across the profession.
|
|
Driver who killed family of 4 in West Portal crash sentenced to probation by San Francisco judge ABC7 San FranciscoWoman, 80, receives probation and no jail time over San Francisco crash that killed four The GuardianSan Francisco Driver Gets Probation After Killing a Family of 4 The New York Times
|
|
Why the US wants to protect Iran's oil and gas VoxExclusive: Qatar's energy boss says he had warned of dangers of provoking Iran ReutersTrump's Complaint About Israeli Strike on Gas Field Exposes Divergent Strategies The New York TimesIran hits Gulf energy sites, escalating war, as U.S. mulls sanctions rollback The Washington Post
|
|
Arm increasingly benefits from central processing units that are becoming "indispensable" in AI data centers.
|
|
Editor's note: This is the final part of a seven-part series. It dives more deeply into the third strategy for defusing a retirement tax bomb, which is Roth conversions. If you missed the introductory article, you may find it helpful to start here.
Because they offer tax-free qualified withdrawals, Roth IRAs and Roth conversions can be a critical strategy for defusing the retirement tax bomb that traditional IRAs, 401(k)s and other pre-tax savings accounts can set you up for in retirement.
A Roth conversion is when you transfer money out of a pre-tax retirement account into an after-tax Roth. Typically, every dollar you convert is taxed as ordinary income, unless the pre-tax account was also funded with after-tax dollars.
SEE MORE Don't Move to Another State Just to Reduce Your Taxes
Here's the problem though: Most people who are facing a retirement tax bomb and are still working probably have high incomes and are in a high marginal tax bracket. The last thing they want is a Roth conversion, which adds to their income and would be taxed at high tax rates.
Instead, this is a good strategy to consider in low-income years, especially for people who retire early in their 50s and early 60s who may have several years to do conversions before Medicare means testing surcharges, Social Security income and RMDs kick in. Many of my clients do several years of annual Roth conversions starting early in retirement.
Three Windows for Roth Conversions
The first window for Roth conversions is the years before enrolling in Medicare, but recal
|
|
