Converting at least some of an old 401(k) to a Roth IRA can offer long-term tax benefits and retirement flexibility, ...

That Roth IRA conversion comes with a tax bill — here's how to pay for it By Kate Dore, CFP®,CNBC • Published December 9, 2024 • Updated on December 9, 2024 at 4:11 pm ...

2. Set up your Roth IRA The next step is to set up your Roth IRA. Several online brokers make it easy to open a Roth IRA, including Charles Schwab, E*Trade, Fidelity, and Vanguard.

You have until the April tax return deadline to set up and fund an IRA for the prior tax year. This means you have until April 15, 2025 to open and contribute to a Roth for 2024.

Key Points For 2025, you can stash away up to $7,000 in a Roth IRA. If you are over 49, you can stash away up to $8,000 thanks to the catch-up contribution for older savers.

The best reason to add a Roth IRA to your retirement plan this year is the savings on taxes, with tax-free growth potential, tax-free withdrawals, and more. Even if tax rates rise in the future ...