Latest news with #IRAs
Yahoo
14 hours ago
- Business
- Yahoo
Suze Orman: 2 Ways for Retirees To Manage Multiple IRAs
Juggling multiple individual retirement accounts (IRAs) can get complicated. 'If you have multiple traditional IRAs, you are setting yourself up for some potential headaches once you reach the age where you must begin to take required minimum distributions (RMDs),' financial expert Suze Orman wrote in a recent blog post. Depending on the year you were born, this age is either 73 or 75. If you're currently retired, but haven't reached the age when you are required to take distributions, take note of these strategies now to make managing your multiple IRAs simpler. Check Out: Read Next: If you have multiple traditional IRAs, the best way to make managing them easier is to roll all of your accounts into one. 'You can move money from one traditional IRA into another traditional IRA without any tax bill,' Orman wrote. 'It's just a rollover. If you have multiple traditional IRAs at the same brokerage, call them and you might be able to consolidate all of them with just a phone call. 'If you have traditional IRAs at different brokerages, decide which one you want to keep, and then ask for rollover instructions from the brokerage you will move your money out of.' The money should be transferred directly from one account to the other — otherwise, there may be tax implications. Consolidating your accounts is the strategy Orman recommends if you currently have multiple IRAs. 'The less you have to keep track of as you age, the easier you are making it for an older you, and anyone who might eventually step in and help manage your finances,' she wrote. 'One big traditional IRA account that simplifies your life to one RMD is a wise retirement move.' See More: If you don't want to consolidate your accounts, your other option to make things simpler is to take your total RMD amount from one account instead of having to take distributions from each. 'For instance, if you have four IRAs, calculate the RMD for all four. (Your brokerage will have a free online tool to help with this. It's an easy calculation.),' Orman wrote. 'Then, add up all four.' The example Orman gives is that you have an IRA with an RMD of $2,000, an IRA with an RMD of $4,000, an IRA with an RMD of $2,500 and an IRA with an RMD of $3,500. That means in total, you must withdraw $12,000. 'If you want, you can take a $12,000 RMD from one of the IRAs,' Orman wrote. 'All the IRS cares about is that you satisfy your total RMD obligation.' This move allows you to be more strategic. 'This strategy can be helpful if you invest your IRAs a bit differently,' Orman wrote. 'In years when stocks are down, you might want to avoid taking the RMD directly from an IRA heavily invested in stocks, and instead take it from an IRA with cash or bonds.' More From GOBankingRates Here's the Minimum Salary Required To Be Considered Upper Class in 2025 This article originally appeared on Suze Orman: 2 Ways for Retirees To Manage Multiple IRAs
Yahoo
14 hours ago
- Business
- Yahoo
Suze Orman: 2 Ways for Retirees To Manage Multiple IRAs
Juggling multiple individual retirement accounts (IRAs) can get complicated. 'If you have multiple traditional IRAs, you are setting yourself up for some potential headaches once you reach the age where you must begin to take required minimum distributions (RMDs),' financial expert Suze Orman wrote in a recent blog post. Depending on the year you were born, this age is either 73 or 75. If you're currently retired, but haven't reached the age when you are required to take distributions, take note of these strategies now to make managing your multiple IRAs simpler. Check Out: Read Next: If you have multiple traditional IRAs, the best way to make managing them easier is to roll all of your accounts into one. 'You can move money from one traditional IRA into another traditional IRA without any tax bill,' Orman wrote. 'It's just a rollover. If you have multiple traditional IRAs at the same brokerage, call them and you might be able to consolidate all of them with just a phone call. 'If you have traditional IRAs at different brokerages, decide which one you want to keep, and then ask for rollover instructions from the brokerage you will move your money out of.' The money should be transferred directly from one account to the other — otherwise, there may be tax implications. Consolidating your accounts is the strategy Orman recommends if you currently have multiple IRAs. 'The less you have to keep track of as you age, the easier you are making it for an older you, and anyone who might eventually step in and help manage your finances,' she wrote. 'One big traditional IRA account that simplifies your life to one RMD is a wise retirement move.' See More: If you don't want to consolidate your accounts, your other option to make things simpler is to take your total RMD amount from one account instead of having to take distributions from each. 'For instance, if you have four IRAs, calculate the RMD for all four. (Your brokerage will have a free online tool to help with this. It's an easy calculation.),' Orman wrote. 'Then, add up all four.' The example Orman gives is that you have an IRA with an RMD of $2,000, an IRA with an RMD of $4,000, an IRA with an RMD of $2,500 and an IRA with an RMD of $3,500. That means in total, you must withdraw $12,000. 'If you want, you can take a $12,000 RMD from one of the IRAs,' Orman wrote. 'All the IRS cares about is that you satisfy your total RMD obligation.' This move allows you to be more strategic. 'This strategy can be helpful if you invest your IRAs a bit differently,' Orman wrote. 'In years when stocks are down, you might want to avoid taking the RMD directly from an IRA heavily invested in stocks, and instead take it from an IRA with cash or bonds.' More From GOBankingRates 7 Luxury SUVs That Will Become Affordable in 2025 This article originally appeared on Suze Orman: 2 Ways for Retirees To Manage Multiple IRAs
Yahoo
19 hours ago
- Business
- Yahoo
Suze Orman: 2 Ways for Retirees To Manage Multiple IRAs
Juggling multiple individual retirement accounts (IRAs) can get complicated. 'If you have multiple traditional IRAs, you are setting yourself up for some potential headaches once you reach the age where you must begin to take required minimum distributions (RMDs),' financial expert Suze Orman wrote in a recent blog post. Depending on the year you were born, this age is either 73 or 75. If you're currently retired, but haven't reached the age when you are required to take distributions, take note of these strategies now to make managing your multiple IRAs simpler. Check Out: Read Next: If you have multiple traditional IRAs, the best way to make managing them easier is to roll all of your accounts into one. 'You can move money from one traditional IRA into another traditional IRA without any tax bill,' Orman wrote. 'It's just a rollover. If you have multiple traditional IRAs at the same brokerage, call them and you might be able to consolidate all of them with just a phone call. 'If you have traditional IRAs at different brokerages, decide which one you want to keep, and then ask for rollover instructions from the brokerage you will move your money out of.' The money should be transferred directly from one account to the other — otherwise, there may be tax implications. Consolidating your accounts is the strategy Orman recommends if you currently have multiple IRAs. 'The less you have to keep track of as you age, the easier you are making it for an older you, and anyone who might eventually step in and help manage your finances,' she wrote. 'One big traditional IRA account that simplifies your life to one RMD is a wise retirement move.' See More: If you don't want to consolidate your accounts, your other option to make things simpler is to take your total RMD amount from one account instead of having to take distributions from each. 'For instance, if you have four IRAs, calculate the RMD for all four. (Your brokerage will have a free online tool to help with this. It's an easy calculation.),' Orman wrote. 'Then, add up all four.' The example Orman gives is that you have an IRA with an RMD of $2,000, an IRA with an RMD of $4,000, an IRA with an RMD of $2,500 and an IRA with an RMD of $3,500. That means in total, you must withdraw $12,000. 'If you want, you can take a $12,000 RMD from one of the IRAs,' Orman wrote. 'All the IRS cares about is that you satisfy your total RMD obligation.' This move allows you to be more strategic. 'This strategy can be helpful if you invest your IRAs a bit differently,' Orman wrote. 'In years when stocks are down, you might want to avoid taking the RMD directly from an IRA heavily invested in stocks, and instead take it from an IRA with cash or bonds.' More From GOBankingRates How Much Money Is Needed To Be Considered Middle Class in Every State? This article originally appeared on Suze Orman: 2 Ways for Retirees To Manage Multiple IRAs Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Miami Herald
29-05-2025
- Business
- Miami Herald
Jean Chatzky sends sharp message on 401(k)s, Roth IRAs
With growing concerns about market fluctuations and the potential for an economic downturn, many American workers are focused on managing the financial pressures of everyday life - covering housing costs, keeping up with rising grocery prices, fuel expenses, and other necessities. Even as they navigate these immediate financial demands, they continue planning for the future, actively contributing to 401(k) plans and Individual Retirement Accounts (IRAs) to build a secure retirement and maintain financial resilience in an unpredictable economy. Jean Chatzky, a well-known author and former financial editor for NBC's Today Show, offers insightful perspectives on 401(k) plans and IRAs - including one tactic regarding an intriguing strategy for handling IRAs that many will have an interest in exploring. Don't miss the move: Subscribe to TheStreet's free daily newsletter Overall, U.S. employees acknowledge the value of retirement savings tools such as 401(k) plans and IRAs, even during periods of market uncertainty. Enrolling in an employer-sponsored 401(k) plan remains one of the most effective ways to save for retirement, particularly when employers provide matching contributions. With automatic deductions taken directly from paychecks, this system ensures consistent savings without requiring extra effort, making it both practical and seamless. The contribution limit for 401(k) plans has increased to $23,500 in 2025, compared to $23,000 in 2024. Employees aged 60 to 63 can now make larger catch-up contributions of up to $11,250, while those aged 50 to 59 can contribute up to $7,500 in catch-up funds. Related: Jean Chatzky warns Americans on Social Security, 401(k)s IRAs offer additional investment options that may not be accessible through a 401(k), making them an appealing choice for certain savers. However, IRAs require a more proactive approach, as individuals must set up the account and arrange automatic contributions independently. This added level of responsibility can lead some to overlook their advantages. The contribution cap for IRAs remains at $7,000 in 2025, with an additional $1,000 available for those aged 50 and above. Chatzky advises beginning 401(k) contributors to start small but consistently increase contributions. She suggests beginning with 3% of one's pay, then raising it by 2% annually. For most people, an eventual goal of contributing 10% of one's income to a 401(k) is sufficient, Chatzky recommends. For those beginning to establish 401(k) contributions later in their careers, 15% is an appropriate figure. The automatic deduction featured by 401(k) plans and the opportunity to take advantage of employer matching are strategies Chatzky endorses. In fact, Chatzky suggests the automatic deduction concept as an ideal for which to strive in other areas of one's financial savings approach. More on retirement: Dave Ramsey sounds alarm for Americans on Social SecurityScott Galloway warns Americans on 401(k), US economy threatShark Tank's Kevin O'Leary has message on Social Security, 401(k)s "The reason 401(k) plans work is because you set them up and then the money gets zapped from your paycheck before you can see it or touch it or spend it," Chatzky wrote. "It disrupts human impulsivity." Chatzky emphasizes the importance of extending automation beyond retirement savings. If one's workplace offers a health savings account, one can arrange payroll deductions to streamline contributions. A person can ensure consistent funding for 529 plans and other investments by scheduling automatic transfers directly from their checking account. "If you're not someone who will regularly rebalance your investments, put your money in a target date or balanced fund that will do the work for you," Chatzky wrote. "Auto-paying select bills is a big help, too." Related: Shark Tank's Kevin O'Leary sends big Social Security message to all Americans A traditional IRA allows tax-deductible contributions, but withdrawals in retirement are taxed. A Roth IRA has after-tax contributions, but withdrawals are tax-free. Many high earners aim to minimize taxes in retirement, often considering converting a traditional IRA to a Roth IRA if they expect lower tax rates later. Chatzky addresses this strategy, known as a backdoor Roth IRA. She cautions that converting assets requires paying taxes upfront, which can be costly. Using IRA funds to cover taxes is discouraged, as it could significantly reduce savings. This approach is only advisable for those with sufficient funds outside their IRA to handle the tax burden, Chatzky stresses. Related: Veteran fund manager unveils eye-popping S&P 500 forecast The Arena Media Brands, LLC THESTREET is a registered trademark of TheStreet, Inc.
Yahoo
23-05-2025
- Business
- Yahoo
BlockTrust IRA Brings Quant Trading Tools to Crypto Retirement Accounts
As spot bitcoin BTC exchange-traded funds continue to grow and Wall Street wades deeper into crypto, more and more people are able to gain exposure to digital assets through their individual retirement accounts (IRAs). IRAs offer tax advantages and a range of investment options, including stocks, real estate, commodities and, increasingly, cryptocurrencies. But when it comes to crypto, there's usually only one investment strategy available: to buy and hold. It's a strategy that might work well for assets like the S&P 500, which have long track records of steadily appreciating over longer time frames, but bitcoin is still an extremely volatile asset and other coins even more so. The idea behind BlockTrust IRA, then, is simple: to manage the crypto positions of its customers in order to take advantage of that volatility and maximize their returns. 'We're the only company that has an AI tool meshed with traders that put people automatically in cash [when need be]. Then we wait for the right signals, and we buy back in,' Jonathan Rose, the firm's CEO, told CoinDesk in an interview. 'Where people are scared of volatility and scared of risk, we actually want the volatility and the risk associated with that, because that's how we actually make our clients money,' Rose said. 'We are right a lot more than we are wrong, and that's how we're able to beat the benchmark.' BlockTrust's secret sauce? Animus Technologies, a fund that provides intelligent asset management solutions for crypto. Animus has servers around the world and quantifies humongous amounts of data — to the point that a European government body has reached out to inquire what exactly they're quantifying data for, according to Rose. Animus typically only shares its signals with high net-worth individuals and fund clients, Rose said. In other words, crypto retail participants may now benefit, through their BlockTrust accounts, from the kind of trading mechanisms that previously were only available to quant funds. The sophisticated strategies are currently only available for bitcoin BTC and ether ETH, but BlockTrust offers exposure to 60 different cryptocurrencies, Rose said. Users of the platform can invest as little as $1,000 for non-managed accounts, or $25,000 if they want a managed account — and trading fees can go as low as 0.4% for the former and 0.14% for the latter. BlockTrust IRA went live officially in February. In March, the firm had accrued $10 million in assets, and Rose expects it to bring in roughly $100 million before the end of the year. The company's early success may also be due to the fact that it's not just open to U.S. residents, but to people all around the world, as long as they can pass its Know-Your-Customer (KYC) checks. Americans do have the added advantage of being able to use their tax-deferred retirement savings to gain exposure. Crypto markets are ever changing, and trading strategies that function perfectly for a long time may suddenly become outdated due to shifts in the economic environment or crypto-intrinsic changes — potentially threatening to render Animus' approach obsolete someday. But Rose isn't concerned. 'When [the people at] Animus Technologies go to these hedge fund conferences and speak, they always come back with a big grin on their faces, because they're like, 'We are so light-years ahead of anyone remotely doing what we're doing,'' Rose said. 'It's going to take like four to six years for people to even kind of catch up to us.' Sign in to access your portfolio
