In this Episode of the Secure Your Retirement Podcast, Radon and Murs discuss the 5-year rule around Roth IRAs and what conversions look like. A Roth IRA is a powerful tax-free investment tool, especially as a long-term investment growth vehicle.

Listen in to learn the difference between Roth IRAs’ contributions and conversions and how the 5-year rule applies to each. You will also learn about the five advantages of a Roth IRA: tax-free growth, not subject to RMDs, tax diversification, estate planning benefits, and hedge against future tax increases.

In this episode, find out:

• Understanding the 5-year rule on a Roth IRA’s contribution interest to be tax-free.
• The difference between a Roth IRA contribution and conversion.
• Understanding Roth IRA conversions and how the 5-year rule applies to it.
• How to start your Roth IRA clock by opening an account immediately, even as a high-income earner.
• A scenario to help you understand the power of Roth IRA conversions as a long-time growth vehicle.
• The advantages and disadvantages of a Roth IRA and the importance of knowing them.

Tweetable Quotes:

• “If you’re along the line of thinking that taxes in the future are going to be higher than they’re today, a Roth IRA is an extremely powerful tool.”- Radon Stancil
• “When it comes to developing a withdrawal strategy with a sizable tax-free asset like a Roth IRA, we can blend things to optimize our tax brackets as we go through retirement.”- Murs Tariq 

Resources:

If you are in or nearing retirement and you want to gain clarity on what questions you should be asking, learn what the biggest retirement myths are, and identify what you can do to achieve peace of mind for your retirement, get started today by requesting our complimentary video course, Four Steps to Secure Your Retirement!

To access the course, simply visit POMWealth.net/podcast.