Roth accounts are an excellent vehicle for tax diversification and planning your financial future. However, there are some changes to these laws being discussed in Congress. Today, Amy Walls of Thimbleberry Financial breaks down current Roth options and what might change.
First, we look at the tax triangle – and the three “corners” of assets, based on tax status. Next, Amy explains the 5 ways to contribute to a Roth account:
- Direct contributions
- Employer sponsored Roth plans (401k, 403b, and 457 plans)
- Converting Pre-Tax money to a Roth IRA
- Converting After-Tax money to a Roth IRA (back door Roth)
- Converting After-tax 401k money to Roth 401k (Mega back-door Roth)
Amy explains which of these strategies could be protected, which could change, and which could be eliminated altogether. If these changes happen, what options will we have available? Finally, Amy explains why she’s advising to hold off on Roth conversions at present.
To get in touch with Amy and her team at Thimbleberry Financial, call 503-610-6510 or visit thimbleberryfinancial.com. The ThimbleberryU Podcast is produced by JAG Podcast Productions – https://jagpodcastproductions.com/
