But when they took $10k from their IRA they had a 50% tax increase.
Why?When Bob took out $10,000 from his IRA his taxes tripled.
Why?In this book we’re not only going to answer these questions but we’re also going to show you what you should be doing NOW to avoid the stealth tax increases retirees face but are ignorant of.
Why?When John died Judy’s income went down by 33% but her taxes went UP! Why?Isn’t interest on municipal bonds tax free? Then why did it cause John and Judy’s taxes to increase?When Judy took out $20k to take her daughter on a cruise it cost her $9,908 in taxes.
Why?Why did Bob’s Medicare premiums nearly double when he took out an extra $10k from his IRA?When Jenny, a divorced gas station attendant making $35k a year inherited an IRA from her mom she lost 25% in Federal Taxes.
With clear examples and uncomplicated language, the book shows you how to implement proven strategies that will prevent married couples from losing hundreds of thousands of dollars.
The math for doubling your Social Security can be found on page 20.
The timing of Roth IRA conversions and Social Security distributions can easily make a difference of $1,000,000 or more.
Getting Social Security wrong not only hurts the primary wage earner of the couple, but could be devastating for the dependent spouse, usually the wife.
• How to receive larger monthly checks with Cost of Living Adjustments (COLAs) and guaranteed annual 8% “raises.
• Optimal marital strategies including filing a restricted application.
All proceeds from this book go to charity: water, a non-profit organization working in partnership with local organizations to bring clean and safe drinking water to people around the world.
Doing so will pay for itself hundreds if not thousands of times over.
But how? To find out, make it a priority to read Jim Lange’s brief but fabulously insightful new book.
”—Paul Merriman, author of Financial Fitness Forever“Jim Lange has done it again.
Seniors will find that reading the The $214,000 Mistake is the best hour they could possibly spend.
Ninety-seven percent (97%) of Social Security recipients don’t receive the benefits they are entitled to? Do you know why? Because, they don’t know how to optimize their benefits.
The $214,000 difference referred to in the book title is shown in Figure 3, on page 19.
The book also covers how to combine optimal Roth IRA conversion strategies with the best Social Security strategies.
Under the newly passed Trump tax bill, the difference could be $1,500,000 or more.
Furthermore, getting Social Security right is a woman’s issue.
For example, if the primary-wage-earning-husband collects too early, not only will his benefit be less than half of what it could be, his wife will get less than half if he dies first.
Critical strategies covered in this book include:• Why you should delay claiming your benefits—don’t forfeit $214,000 for all the wrong reasons.
”• How maximizing your benefit can provide your surviving spouse with a long-term security life-line.
• The financial synergy between Social Security and Roth IRA conversions—especially under the new laws.
What Others are Saying:“Read James Lange’s excellent book and learn how and when to take your Social Security and retirement accounts.
In his clear succinct style, Jim shows those about to enter retirement, how to optimize their Social Security benefits and take advantage of strategies that are being phased out in the future.
”—Burton Malkiel, author of A Random Walk Down Wall Street.
The $214,000 Mistake — How to Double Your Social Security and Maximize Your IRAs: Proven Strategies for Couples Age 62-70 helps married taxpayers get the most out of their Social Security benefits: more money for you and less for Uncle Sam.
And, since statistically women live on average seven years longer than men, a man making the wrong decision about his Social Security could unnecessarily doom his wife to a life of poverty after he dies.
”— Laurence Kotlikoff, Boston University Economist, co-author of Get What’s Yours: Revised & Updated: The Secrets To Maxing Out Your Social Security“Social Security is the best income stream available to retirees — and you want to get as much of this income as possible.
”—Jonathan Clements, author of How to Think About Money and former personal-finance columnist for The Wall Street Journal“If you spend 60 minutes with this book, you may be able to increase your lifetime income from Social Security by tens of thousands or even hundreds of thousands of dollars.
This book is to be used as a starting point for children and parents.
00 to the amount of the single standard deduction allowed by the IRS.
This book can also provide limited guidance for children with higher income, introducing them to basic topics.
The focus is on the unmarried dependent child (with no dependents of their own) who has a yearly income that ranges from $1.
Major Topics include: 1) Money Management: Appreciate the benefits of a Roth IRA 2) Career Skills: Identify different types of child employment 3) New Ideas: Discover different ways parents can employ their children 4) Special Details: Learn how parents can issue Forms W-2 for their child 5) Introduction to Taxes: Basic tax concepts for children with low earned income 6) Powerful Knowledge: Understand rules for children to contribute to a Roth IRA.
Up-to-Date Roth and Investing InsightsInvestment vehicles like a Roth IRA and any employer-sponsored Roth option you may be offered should definitely be part of your investment plan for retirement.
You’re lucky if you have a Roth option in your 401(k), 403(b), 457, 401(a), or other defined contribution plan at work.
Take advantage of all the tax breaks that Uncle Sam gives you.
As you invest over the years, returns are amplified by those advantages.
You’ve got to max them out the best you can and integrate them into a single investment plan for retirement.
As the years go by, you’ll add other pre-tax (traditional) investments to the mix, which will also add value to your investment plan.
Over the Income Limits for Contributing to a Roth IRA?Think you can’t contribute to a Roth IRA because you’re over the income limits? Think again.
It’s a little trick I like to call the ‘Ole Roth IRA Switcheroo.
You may be able to execute a switcheroo from your employer’s retirement account, a traditional IRA, or both.
Best Roth! Answers All of Your Roth QuestionsAs a financial educator at corporations, universities, and municipalities, I get asked all kinds of Roth-oriented questions.
Here’s a sampling:Can I tap my Roth IRA before age 59 1/2 without tax or penalty?My employer offers both a traditional and Roth option.
How much tax will I owe, and when is the best time to do it?Max Out Tax-Advantaged AccountsStart maximizing your earnings by adding Roth accounts to your investing lineup for retirement.
The best time to start is right now by scrolling to the top of the page and clicking on the “Buy” button.
If you don’t have an investment plan for retirement, Best Roth! will help you come up with one that minimizes your risk and maximizes your profits.
) By all means, take advantage, but you’ll still want to open up and fund a Roth IRA for a variety of reasons.
Why? Everything else being equal, you’ll earn a higher rate of return in tax-advantaged accounts than you would in regular taxable ones.
These investment vehicles are the low hanging fruit as far as your retirement savings goes.
The longer your time horizon for investment, the more you’ll benefit from tax free earnings.
The trick is to integrate all of those tax advantaged accounts into a single investment plan.
In fact, you may be able to fund your Roth IRA on a yearly basis well above the contribution limits.
It may sound a little sneaky and underhanded, but it’s totally legit.
I update this book every year so you’re assured of receiving the most up-to-date tax and employer retirement plan information that will help keep you one step ahead of the pack.
I take pride in explaining even the most complex issues in easy to understand language.
Combine that tax advantaged plan with low investing fees and you’ve got one of the most effective investing tools on the planet!Jumpstart Your ProsperityAre you a novice investor who’s just getting started? Maybe you want to help your kids save for retirement and become more financially literate? Best Roth! provides the information and insight to jumpstart your prosperity and get you on the road to financial freedom.
Should I be making Roth or traditional contributions?Should I roll my old company plan into my present employer’s plan or an IRA?My employer offers a Roth option: Why should I still invest in a Roth IRA?Are there any downsides to converting after-tax non-Roth contributions to my Roth IRA from my company’s plan or from a traditional IRA?I’m interested in converting money to a Roth IRA.
Today, the Roth family of retirement options is a great way for anyone to start putting away money for their future without worrying about paying taxes on their money more than once.
This book is written for the everyday investor who already has a Roth IRA and desires more knowledge or for the individual seriously considering a Roth account.
You will learn how to maintain a positive working relationship with your administrator and what you will need to do to make your tax payments to the IRS.
You will learn how to put limits on your investments and to manage your risk effectively from now until you retire as well as how to stretch your accounts as needed.
If you are 21 or 65, this book can help you maximize the results of your Roth accounts and teach you tricks and tips to getting the most out of your investment.
Founded over twenty years ago in the company president’s garage, Atlantic Publishing has grown to become a renowned resource for non-fiction books.
Atlantic Publishing prides itself on producing award winning, high-quality manuals that give readers up-to-date, pertinent information, real-world examples, and case studies with expert advice.
This Atlantic Publishing eBook was professionally written, edited, fact checked, proofed and designed.
Over the years our books have won dozens of book awards for content, cover design and interior design including the prestigious Benjamin Franklin award for excellence in publishing.
In 2006, the Roth IRA was made permanent by the Pension Protection Plan along with the increased contribution limits.
You will learn the fundamental basics of investing in an IRA and how to start making investment choices, from researching companies and funds to settling into a long term investm ent.
You will learn the ins and outs of researching and choosing mutual funds and why your decisions now do not mean everything for the rest of your life but should still be made carefully.
Atlantic Publishing is a small, independent publishing company based in Ocala, Florida.
Today, over 450 titles are in print covering subjects such as small business, healthy living, management, finance, careers, and real estate.
Every book has resources, contact information, and web sites of the products or companies discussed.
The print version of this book is 336 pages and you receive exactly the same content.
We are proud of the high quality of our books and hope you will enjoy this eBook version.
When the Roth IRA was introduced in the 1990s it was widely hailed as a great way for individuals to increase their retirement holdings by paying the taxes before the money was invested into their IRA accounts.
However, for your Roth IRA or Roth 401(k) to effectively grow and provide for you when you reach retirement, you need to understand how to manage your investments and fully take advantage of this popular method of saving.
Those who want to put away money so they can retire with enough to be well protected and prepared for anything will benefit from the extensive research on these investments and the helpful case studies distributed throughout the book.
You will learn why the federal government enacted the new Roth rules in the mid-1990s, what your different Roth options are and all the ways you can invest the money—from stocks and real estate to bonds and mutual funds.
Top financial experts who specialize in Roth IRAs have been consulted and their expertise compiled here to provide you with the necessary information you need to learn how to effectively invest in your retirement accounts.
The Clear and Simple Guide to the Roth IRA will clearly show you the powerful tax-savings strategies behind the Roth IRA, including recent changes in tax laws that make it even more advantageous to start now.
This easy and complete resource to Roth IRA’s will help you quickly and easily cut through all of the Roth IRA rules, while avoiding the potential land mines along the way, including:•The main differences between a traditional IRA and a Roth IRA;•Roth IRA contribution limits;•Roth IRA conversion rules;•The right way to pay your taxes and set up your Roth IRA;•How to use a Roth 401k with a Roth IRA for even more powerful tax savings;•How to keep the tax – free funds flowing with inherited Roth IRA’s;•Updates for 2015!•And much more in a concise and easy to follow guide!.
Why? Because one wrong decision can lead to expensive consequences.
However, not taking the time to understand these rules is crucial mistake that can have disastrous consequences.
Making the wrong choice or not making a choice by a deadline, could trigger an unnecessary tax bill and result in forfeiting the opportunity for future tax-advantaged growth.
Mistakes are painfully common when IRAs are passed to heirs.
Since IRAs are a fairly new retirement vehicle, we are in the first generation of dealing with inherited IRAs.
Don’t count on your account’s custodian to provide customized advice either.
They are not tax experts or comprehensive financial planners.
The appendix provides key dates you should keep in mind to make sure you meet the IRS deadlines that apply to the options you choose.
If so, NOW – not later — is the time to understand the IRA beneficiary rules and options.
Unfortunately, many owners of IRAs and their financial advisors are not aware of all of the various rules – and time limits – regarding inheriting an IRA.
If you inherit an IRA, you’ll have some important decisions to make and strict deadlines for making them.
One wrong move and the entire IRA could be taxed – rather than tax-deferred.
Even financial professionals don’t always know the rules.
Many advisors are just not up to speed on the rules.
While some custodians are more versed in the maze of rules surrounding inherited IRAs than others, IRA custodians are not in the business of advising beneficiaries or their best moves.
The problem is that a mistake made on the part of the custodian, or bad advice, leaves beneficiaries holding the bag and footing the tax bill.
In addition, for Traditional IRAs, options which be broken down based on whether the account owner was under or over age 70½.
Do you have an individual retirement account (IRA) that you’re planning to leave to your heirs? Or do you expect to inherit an IRA from a parent, relative or friend at some point in the future? Since retirement accounts make up the majority of many people’s estates, you probably answered “yes” to one, or both, of these questions.
Author and Financial Planning expert, Lisa Hay, CPA, has written this user-friendly guide to help you navigate the labyrinth of rules regarding inherited IRAs, and ensure that your inheritance is not diminished by paying unnecessary taxes.
This book is organized into seven chapters: The first chapter provides general information on inherited IRAs, the second and third chapters provide additional details regarding applicable rules for Inherited Roth IRAs and Traditional IRAs, respectively.
The last four chapters are broken down into the following categories with specific options for each of the four categories:•Traditional IRAs – Spouse•Traditional IRAs – Non-spouse•Roth IRAs – Spouse•Roth IRAs – Non-spouseWithin each of the above four chapters, various options are discussed, with detailed discussions regarding the specifics of account type, when money will be available and other important considerations.
Take a more active role in your future retirement with the practical and straightforward advice of In God We Trust—In Roth We Prosper.
The Roth retirement account is a golden ticket to tax-free retirement wealth and the best legal tax shelter out there.
Saving for retirement doesn’t have to be scary—and it’s certainly never boring! Start building your million dollars or more, tax free, with Bergman’s In God We Trust—In Roth We Prosper.
But with some good investment decisions you can have a million dollars plus tax-free in a Roth retirement account when you retire.
Starting a Roth account can become the most important and valuable decision a Generation Xer or millennial will ever make.
, an experienced tax attorney who specializes in IRAs and 401(k)s, this must-read guide lays out everything you need to know about how retirement accounts work and how they can help you live large without much work.
Whether it’s figuring out which one is the best one for you based on your personal income circumstances, what to do to get started, or how much money to put away in your account each year (hint: it’s not as much as you think!), Bergman has the tools you need to get started.
From twenty-two-year-olds just starting out in the job market to those in their late fifties who are already eyeing the end of their careers, this book gives you the tools you need to take charge of building your retirement wealth and shows you how easy and fun that can be.
IMAGINE HAVING AN INCOME TAX-FREE RETIREMENT INCOME!It’s possible with a Roth IRA or Roth 401(k) account!In this compact explanation, Michael Gray, CPA gives the highlights of what you need to know to build a big, tax-deferred or tax-free retirement account and get the maximum benefits from it.
•How do the advantages and disadvantages of a Roth account compare to those of an IRA account?•How can you use a rollover from a 401(k) or other employee retirement account to create a big Roth or IRA account?•Many people have become disenchanted with the stock market.
How can you use a self-directed Roth or IRA account to make alternative investments, such as in real estate or private mortgages?•What are the prohibited transactions that can result in disqualification (treated as instant distribution) of your Roth or IRA account?•When can a Roth or IRA be required to pay income taxes? Should you go ahead with an investment that generates income taxes for the Roth or IRA anyway?And much more!.