Roth individual retirement accounts (Roth IRAs) and 457 plans are tax-advantaged ways that can help you save for retirement. Although the end goal is the same, they do work very differently.

529 plans are for education, while Roth IRAs are for retirement. But you can use either—or both—of these tax-advantaged plans to boost college savings.

In the 529 vs. Roth IRA contest, the Roth IRA often wins. But there are situations where a 529 plan makes more sense, and financial aid is an important consideration.

Roth IRA vs. 529 plan: When kids don't attend college. At first glance, Roth IRAs seem to win on flexibility. After all, if your child doesn't go to college or needs less money than you expected, ...

There are many benefits and drawbacks to using Roth IRAs as savings vehicles for college education expenses instead of a 529 plan. Read more about the pros and cons to Roth IRAs vs. 529 plans here.

One Big Beautiful Bill' makes 529 plans more flexible, some skeptics say the education savings plans still may not be ...

Contributions to a Roth IRA can be withdrawn penalty-free to open a 529 plan. 529 plans allow contributions to grow tax-free and provide tax-free distributions for qualified education expenses.

RMDs: Beginning at age73 (or 75 if you were born in 1960 or later), you must begin taking RMDs from your 401 (k), even if you ...

For example, if you move $40,000 from an old 401(k) plan into a Roth IRA, and you’re in the 12% tax bracket in 2024, the first $11,600 gets taxed at 10% and the remaining $28,600 at 12%.

So if you convert traditional IRA funds to a Roth IRA in September 2024, your five-year clock begins on Jan. 1, 2024, and you could withdraw the funds penalty-free on Jan. 1, 2029.

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.

Thanks to the new $35,000 Roth IRA rollover provision, a 529 plan is among the most useful tools for guaranteeing long-term economic security for your loved ones. That’s because Roth IRA ...