Tag: tax planning

Roth Conversion Explained: When Paying Tax Now Beats Paying Later

October 24, 20264 min read

A $50,000 Roth conversion costs about $10,350 in federal tax in this example. Whether that is a good deal depends on the tax rate you would otherwise pay later.

Retirement

Roth vs Traditional 401(k) and IRA: How to Decide

October 14, 20264 min read

The real question is whether your tax rate will be higher today or in retirement. Here is the math showing why they tie when rates match, and three situations where one pulls ahead.