Knowledge Base
Tax strategy, healthcare before Medicare, the post-FIRE identity shift, and the financial decisions that get more complicated after you stop earning.
1054 articles — page 68 of 88
The roth ira conversion basis calculation is the single number that separates a tax-efficient conversion from an expensive mistake. Your basis is the after-tax money already sitting in your traditional IRA accounts, contributions you made but could not deduct. Convert without knowing it, and you pa
USAA IUL is a permanent life insurance product that credits interest based on the performance of an external index, typically the S&P 500, subject to a cap and a floor. Before anything else: USAA membership is restricted to active duty military, veterans, and eligible family members. If you don't qu
Yes, and the mechanics are straightforward. A non-working spouse can contribute up to $7,000 in 2024 ($8,000 if age 50 or older) to a Roth IRA through a spousal IRA, provided the couple files jointly and the working spouse has sufficient earned income to cover both contributions. The IRS codifies th
The federal government exempts qualified Roth IRA distributions from income tax entirely. Your state may not. For someone pulling $300,000 to $500,000 annually from a Roth in retirement, the difference between living in Illinois and living in Minnesota can exceed $25,000 per year in state taxes alon
For most high-net-worth investors debating VTI or VOO for a Roth IRA, the honest answer is that the choice matters far less than you think. Morningstar data shows the two funds have produced nearly identical 10-year annualized returns, typically within 0.1 to 0.3 percentage points of each other. The
Roth IRA distributions and California taxes follow the same basic federal framework: qualified distributions are tax-free at both the federal and state level. But California's 13.3% top marginal rate, its selective conformity to federal law, and its treatment of Roth conversions create real planning
The short answer: fewer than you'd expect, and the ones that do come with conditions most generic expat guides never mention. The UK, Canada, and Japan have treaty provisions that can protect Roth IRA distributions from local taxation. Australia, Germany, France, and most of the world do not. Where
The window between age 60 and your first Required Minimum Distribution is the most tax-efficient conversion opportunity most high-net-worth retirees will ever have. Your income has likely dropped, your bracket is temporarily lower, and the IRS isn't yet forcing distributions. The question isn't whet
The IRS definition is narrower than most people expect. Under IRC Section 72(m)(7), you must be unable to engage in any substantial gainful activity due to a medically determinable physical or mental impairment. That condition must be expected to result in death or last continuously for at least 12
The short answer: yes, but the eligibility rules for a Roth IRA for non-US citizens are more restrictive than most expat-focused content admits. The Foreign Earned Income Exclusion, which most Americans abroad rely on to reduce their US tax bill, can simultaneously disqualify them from contributing
The Transamerica IUL lawsuit centers on allegations that Transamerica used inflated policy illustrations, concealed fee structures, and misrepresented the long-term performance of its indexed universal life insurance products, specifically the Transamerica Financial Foundation IUL and the Transameri
Yes, capital gains count toward your MAGI for Roth IRA contribution purposes. Every dollar of realized gain, short-term or long-term, flows into the income calculation the IRS uses to determine your eligibility. For 2024, that threshold starts phasing out at $146,000 for single filers and $230,000 f