A 22-year-old Gen Z named Nick called into Dave Ramsey’s show asking the financial guru’s advice. The caller explained he was living at home with an annual income of $15,000. He also shared that he had managed to save $3,000 and had $43,000 invested — the majority in individual stocks. He asked Ramsey what kind of retirement account he should open. Instead of going over retirement account options, Ramsey advised Nick to put a pause on retirement contributions — at least temporarily. Instead, Ramsey said t ...

The IRS mandates withdrawals from pre-tax retirement accounts once you reach a certain age. These are referred to as required minimum distributions (RMDs). For many retirees, RMDs don't change much since they already take out more than the minimum to cover living costs. But, for those who want to withdraw less than the required amount or leave money invested, RMDs can pose a challenge. To help you calculate how much to withdraw from your own retirement accounts, let’s walk through an example of a 78-year-o ...

A comfortable retirement isn’t built overnight and it doesn’t require a six-figure salary. What makes the difference are the small habits you build over time. Whether you’re in your 20s or 50s the right habits will help you build the kind of retirement you want. Find Out: Here’s Why You Might Want To Invest Your Retirement Savings in a Roth 401(k) For You: 7 Tax Loopholes the Rich Use To Pay Less and Build More Wealth The 50 habits below will set you up for a comfortable retirement. Saving and Investing ...

SmartAsset and Yahoo Finance LLC may earn commission or revenue through links in the content below. Converting a 401(k) into a Roth IRA can be appealing for several reasons. Not only can you make qualified withdrawals from Roth accounts tax-free, but Roth accounts are also exempt from required minimum distributions (RMDs.) That can give you more flexibility when withdrawing from your account in retirement and potentially save you money on taxes. Imagine you’re nearing retirement age and have $1.3 millio ...

We are a dual-income couple in our mid-50s with over $2 million in our 401(k)s. Should we “sacrifice” the pre-tax benefit and switch to Roth contributions at work? -Wendy Like most tax-related questions, the answer is “it depends.” Based on your situation, switching contributions to a Roth 401(k) could make sense for a few key reasons, including tax diversity and tax-free growth. However, there may be additional factors that make sticking with a traditional 401(k) and opening a Roth IRA on the side more de ...