Planning for Healthcare Costs in Retirement: Why Medicare Isn’t Enough
Healthcare often becomes one of the largest and most underestimated retirement expenses. From Medicare premiums to prescription drugs and long-term care, this article from Greenbush Financial Group explains why healthcare planning is critical—and how to prepare before and after age 65.
Special Tax Considerations in Retirement
Retirement doesn’t always simplify your taxes. With multiple income sources—Social Security, pensions, IRAs, brokerage accounts—comes added complexity and opportunity. This guide from Greenbush Financial Group explains how to manage taxes strategically and preserve more of your retirement income.
How To Protect A Roth IRA from the Medicaid Spenddown Process
Safeguarding a Roth IRA from the Medicaid spenddown process has long been a challenge for individuals preparing for long-term care. Unlike other assets, Roth IRAs cannot be owned by trusts, and their lack of required minimum distributions (RMDs) has historically left them vulnerable under Medicaid rules. However, a groundbreaking strategy recently developed in New York provides new hope for preserving the full value of these important retirement accounts. By voluntarily initiating RMDs on Roth IRAs, individuals can now protect these accounts from being depleted entirely during Medicaid qualification.
Topics Covered in This Article:
Challenges of Protecting Roth IRAs
The Role of Irrevocable Trusts
Understanding the Medicaid Spenddown Process
Voluntary RMDs for Roth IRAs
New York’s Innovative Strategy
529 to Roth IRA Transfers: A New Backdoor Roth Contribution Strategy Is Born
With the passing of the Secure Act 2.0, starting in 2024, owners of 529 accounts will now have the ability to transfer up to $35,000 from their 529 college savings account directly to a Roth IRA for the beneficiary of the account. While on the surface, this would just seem like a fantastic new option for parents that have money leftover in 529 accounts for their children, it is potentially much more than that. In creating this new rule, the IRS may have inadvertently opened up a new way for high-income earners to move up to $35,000 into a Roth IRA, creating a new “backdoor Roth IRA contribution” strategy for high-income earners and their family members.
Removing Excess Contributions From A Roth IRA
If you made the mistake of contributing too much to your Roth IRA, you have to go through the process of pulling the excess contributions back out of the Roth IRA. The could be IRS taxes and penalties involved but it’s important to understand your options.
