Retirement Savings Options: IRA Contributions & Roth Conversions

Today’s Prep:

What happens if you’ve maxed out your 401(k) contribution limit? When is a good time to make a Roth conversion? Eric answers three questions from the mailbag this week all pertaining to the options you have when it comes to saving for retirement.

(Click the featured times below to jump forward in the episode)


Equipping Points:

Are you trying to save as much as possible for retirement? What happens when you bump into the contribution limit–what other options do you have? On this episode of the Retirement Ready podcast, Eric answers three questions from listeners.

Claire in West Des Moines got a big bonus check, maxing out her 401(k) contribution for the year. How can she save in other ways this year? Depending on income level, Eric says to possibly contribute to an IRA or a Roth IRA. If those aren’t an option, annuities or life insurance are another thing to look at.

Doug in Ames was told to make Roth Conversions with his IRAs but was told he made too much to contribute to a Roth IRA. How does this work? What will happen when you make a Roth conversion? What kind of strategy should you implement when it comes to Roth conversions?

Catherine in Pella wants to retire in order to help take care of her mother but she is only 57 years old. Is it foolish to consider early retirement at this point if she’s been a good saver? Be sure to check with your advisors, but it’s definitely an option if you have enough to live on. Just remember to fill your income gaps.

Do you have a question for Eric? You’re always welcome to give Eric a call to talk through your situation to find out what makes the most sense for you.

Listen to the full episode or click on the timestamps below to hear more about a specific question.

[0:46] – Mailbag: Outside of a maxed out 401(k), where can you save?

[1:56] – You can also make a nondeductible IRA contribution.

[4:26] – Mailbag: How and when do you make Roth conversions?

[7:28] – Mailbag: Is it foolish to retire in your late 50s?

[9:07] – Retirement is about filling your income gap.



Related Resources:

Facing The Final Decade Before Retirement

Answering The 401(k) FAQs


Today’s Takeaway:

More From Eric:

The host: Eric Peterson - Contact - Call: (515) 226-1500

Subscribe To The Podcast:

Apple Podcasts  -  Google Podcasts  -  Spotify  -  Stitcher  -  iHeartRadio  -  TuneIn

Check out some other recent episodes

What Goes Into a Customized Financial Plan?

October 15, 2020

Why should you have a customized financial plan? What do you need to consider and what goals help you build an outline for your plan? Join us as we talk about what goes into the process of setting someone up for a secure future.

Read More

Things That Don’t Matter…Until They Do

October 8, 2020

Certain financial documents might seem like they can be put off for now. But when you need them, it’s important to be prepared ahead of time! Do you have all of these things in place?

Read More

Uncommon Sense in Financial Planning

October 1, 2020

When common sense isn’t followed, what does that look like? What common sense should we adhere to when it comes to financial planning?

Read More

Visiting the Financial Doctor

September 24, 2020

We’ve all been to the doctor at some point, so how is it like working with a financial advisor? We compare the similarities on today’s podcast!

Read More

Mailbag: Should I Withdraw from an Old Annuity?

September 17, 2020

When is a good time to withdraw from an annuity and what should you know ahead of time? Eric answers this and two other questions from the mailbag in this week’s podcast.

Read More

Heard It Through The Grapevine?

September 10, 2020

From million-dollar retirement benchmarks to presidential election fears or predictions, have you heard these through the grapevine? Eric shares what he thinks about these three financial rumors.

Read More

Is This Retirement Fact or Fiction?

September 3, 2020

Ever hear something and think, could that be true? Some of these financial concepts are fact and some are fiction–do you know which is which?

Read More

Are You Flirting with Financial Disaster?

August 27, 2020

You might feel great about where you stand financially but there’s a chance you could be flirting with disaster. We’ll tell you about three key areas where people make mistakes in their planning that can end up causing major financial problems in retirement.

Read More

How To Pack Your Financial Suitcase

August 20, 2020

When you go on a trip, a lot of times it helps to refer to a packing list to make sure you have everything. When putting together a financial plan, do you have everything in order? Let’s talk about what you need to put into your financial suitcase.

Read More

What Is Your Retirement Mindset?

August 13, 2020

When it comes to retirement, where are you at? If you’re getting closer to retirement, it may help to understand your current mindset in order to know how best to proceed.

Read More

Leave a Comment