Best Roth! A Beginner's Guide to Roth IRAs, Employer Roth Options, Conversions, and Withdrawals

Up-to-Date Roth and Investing Insights

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. Not all employers offer a Roth option. (Some offer no option at all.) By all means, contribute to your employer's plan, especially if they offer a match, but you’ll still want to open up and fund a Roth IRA for a variety of reasons. Take advantage of all the tax breaks your Uncle Sam gives affords.

Why? Everything else being equal, you’ll earn a higher rate of return in tax-advantaged accounts than you would in regular taxable ones. As you invest over the years, returns are amplified by those advantages.

These investment vehicles are the low hanging fruit as far as your retirement savings goes. You’ve got to max them out the best you can and integrate them into a single investment plan for retirement. 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 Prosperity

Roth investments enjoy tax free earnings. The longer your time horizon for investment, the more you’ll benefit from tax free earnings. 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. The trick is to integrate all of those tax-advantaged accounts into a single investment plan.

Over the Income Limits for Contributing to a Roth IRA?

It may sound a little sneaky and underhanded, but it’s totally legit. You may be able to execute a switcheroo from your employer’s retirement account, a traditional IRA, or both. 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.

Best Roth! Answers All of Your Roth Questions

• Can I tap my Roth IRA before age 59 1/2 without tax or penalty?


• My employer offers both a traditional and Roth option. 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. How much tax will I owe, and when is the best time to do it?

Max Out Tax-Advantaged Accounts