Sentences with phrase «pre-tax retirement plan assets»

If an individual has stopped working and has earned less income for the year, they might be in a lower tax bracket and rolling over pre-tax retirement plan assets to a Roth IRA may be a good move in such a year.

Not exact matches

Pre-tax assets that are converted from a Traditional IRA or another eligible retirement plan to a Roth IRA are treated as a taxable distribution and are subject to ordinary income tax rates in the year of the conversion.

Let's assume I pose the following set of facts: 1) I need to plan for a 60 year retirement, 2) I want to have at the end of Year 60 100 % of my original balance (inflation adjusted obviously), 3) Only 10 % of my savings / investments is in tax deferred accounts (e.g., the bulk are in a taxable accounts), 4) I need a 6 % withdrawal rate pre-tax, and 5) I am indifferent to strategy (VII, etc) and asset choices (annuity vs. dividend blend vs. income, etc) but to guarantee the goals above.

The QLAC can be purchased with up to 25 % of total pre-tax assets (IRA or employer tax - qualified retirement plan), but no more than the premium limit $ 125,000.

Similarly I plan to create Roth ladders with my pre-tax retirement assets once I retire early and am in a lower tax bracket (with income primarily being from rental properties).