#73 - Roth IRAs and Retirement: What You Need to Know

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“Ultimately, it’s how that money gets taxed when it comes out that I think is more important than just how much you have in stocks, bonds, or cash.” - Eric Blake

Roth IRAs can feel confusing—but when you understand how they work, they can become one of the most powerful tools in your retirement plan.

In this episode, you’ll discover how Roth IRAs may give you more control over your taxes in retirement, create flexibility for future withdrawals, and help protect your income for the long run.

We’ll cover the basics—what Roth IRAs are (and aren’t), how the rules for contributions, conversions, and withdrawals really work, and why Congress has been pushing Roth accounts more in recent years. You’ll also hear how Roth IRAs may help you avoid hidden tax traps like higher Medicare premiums or unexpected Social Security taxes.

EPISODE SUMMARY

Why Roth IRAs are not investments themselves, but tax-advantaged account types that act like umbrellas shielding money from future taxes
How Congress is encouraging Roth contributions through Secure Act 2.0, giving retirees long-term tax-free opportunities
The importance of tax diversification, comparing it to and even elevating it above portfolio diversification
Four ways to fund Roth accounts: contributions, conversions, rollovers, and backdoor strategies
The five-year rule, distribution order, and how Roth IRAs can help control tax brackets, Medicare premiums, and Social Security taxation
And more!

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