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Astoria Strategic Wealth

Tax-Free Anyone? The Many Flavors of "Roth"

Direct Roth Contributions.  "Back Door" Roths.  Roth 401(k) Contributions.  Roth Catch-Up Contributions.  "Stealth Health Roths" (HSAs).  FSAs.  Roth Conversions.  Education Tax-Free Accounts (529s). ABLE accounts (Tax-Free accounts for eligible disabled individuals). Muni-Bonds, Treasuries, "Oh My"!

Confused by which ones you can/might/should utilize? You are not alone!  The language around "Roth" and our evolving tax legislation makes it challenging even for talented CPAs to keep up with the nuances.  Much less the Turbo Taxes, Tax Acts of the world.  

Yet they can play a very important role in retirement planning.  Potentially increasingly important as you evaluate the tax diversity of your investment portfolioRead on for some history, some highlights and some framework.

Note that as recently as last Friday (August 25, 2023), the IRS released additional guidance with respect to an extended transition period (2026) for high-income, catch-up, 401(k) contributions becoming Roth mandatory.