Currently, under the Survivor Benefit Plan (SBP), a military retiree can set aside up to 55 percent of his monthly retirement pay to provide their family members with a monthly stipend, after he or she dies.
So if you expect your future tax rate to be higher, can pay the tax bill with non-retirement assets, and have a long time horizon, a Roth conversion might make sense.
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With Roth, you pay tax up front on retirement savings but are promised a tax holiday on withdrawals.
The center also endorses reforms of the military healthcare and retirement systems aimed at bringing compensation levels into closer alignment with the pay and benefits of private-sector workers.
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In other words, a Roth conversion is more impactful if you can pay the tax bill with an outside non-retirement account, like an individual or joint account.
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So I watch my investments drop or return 1% while I pay 5% to the bank and if I use any money from my retirement fund to pay the mortgage it gets taxed as income and I get hit with a 10% penalty.
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In France, Mr Raffarin's government has made a start, with proposals to make employees pay more, over a longer period, towards their retirement.
That way you would choose your retirement age, you would have far more in retirement income than the current system can possibly pay and the politicians couldn't mess around with it.
The Washington Post on January 15, 2013 reported that more than one-quarter of American workers with 401 (k) and other retirement savings accounts are raiding these accounts prior to retirement to pay for current expenses.
The future rises are timed to coincide with salary increases, so take-home pay doesn't fall even after those extra retirement contributions are taken out.
To pass muster with the Internal Revenue Service, such programs should generally be established well ahead of an owner's retirement and pay "reasonable" amounts, White Horse's Mr. Ungashick says.
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