✅ "Backdoor" IRA Savings | ROTH IRA Conversion and Everything You Need To Know About Roth IRAs

[@mishelmk]

Subscription! I was ready to convert to Roth and pay less taxes now than later pay 40% or more seeing where our gov is speeding.. Thank you for clarifying everything in details!

[@77Ronnie77]

Thank you. I love your videos.

[@lenapetrova]

Thank you! Glad I can help!

[@toddb930]

Thank You Lena for putting together these excellent explanations. 😁 I wish I knew about Roth IRA before retiring four years ago. As it turned out, after I retired, I learned that I had to first convert my 401(K) to a Rollover IRA and, while I was doing that, someone suggested opening a Roth IRA to begin converting monies so that I didn't have a big surprise when the Required Minimum Distribution kicked in. Can someone point me to a table that shows maximum age which is used to calculate RMD?

[@alrocky]

Uniform Lifetime Table viewable at IRS or via google

[@abrindeyev]

I'm not eligible for T-IRA or Roth IRA contributions due to the high income limits. What I do over the years - contribute to T-IRA and immediately convert the sum to Roth IRA and file the form 8606 along with my tax return. Hope that nothing changed in 2023 regarding this practice (backdoor)

[@terawattyear]

I convert from my 401(k) to my Roth to the extent that it 1) does not kick me into the next tax bracket and 2) does not create an IRMAA event for Medicare two years from now. Tax rates are only going to rise. Convert now while the converting is “cheap”er.

[@mainulhaque3780]

@lenapetrova, in roth ira, is any capital gain after the retirement date taxable?

[@dbest4755]

Lena - I started Roth Connversions in 2022 using Vanguard, are there tax penalties to convert ?

[@lenapetrova]

No tax penalties but you'll have to pay taxes on the amount you convert. The tax rate would be based on your filing status and your tax bracket. I hope this answers your question!

[@oberweiss7190]

Hi Lena. Can you look into the backdoor option for traditional to ROTH conversions? I do not think it is allowed to circumvent income limits using the backdoor conversion any longer as of 12/2021.

[@alrocky]

No such change occurred

[@its4electric]

Can you go over the tax bomb I don't plan on using all my money and I plan on leaving it to my child then she will have a tax bomb of probably 40% of what's left in my Ira Why not Convert using some of your Ira funds for the taxes now which seems to be less than 40% later

[@alrocky]

"using some of your Ira funds for the taxes" you don't want to do that

[@SWClvU]

Last year there was quite a concern that the Secure Act (1.0) that would phase out Roth conversions in 10 years. Has this been enacted?

[@thefallenone7988]

The tax free withdrawal is now (2024) being reconsidered. Ahh oh well so much for gov. promises.

[@davidhur7542]

I have already retired so can I still convert my profit sharing account to a Roth IRA ?

[@lenapetrova]

Hi David, yes you still can convert a portion or the entire balance.

[@davidhur7542]

@@lenapetrova thank you for your answer. Q: so the only difference is ; you pay taxes ahead of time instead of paying taxes each time you take money out from your Retairement plans, right ?