Roth Advice Gone Wrong and Mandatory Roth Catch-Up Contributions in 2026
View original at nasdaq.comRoth Advice Gone Wrong and Mandatory Roth Catch-Up Contributions in 2026 In this podcast, Motley Fool retirement expert Robert Brokamp speaks with Megan Brinsfield, CFP, CPA, president of Motley Fool Wealth Management (a sister company of The Motley Fool), about when the advice to Roth goes wrong…
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Completing beneficiary designation forms ensures heirs get money faster and can leave it in account longer for tax-advantaged growth
80% confidenceRoth conversions increase AGI which affects Medicare premiums, with Social Security looking back two years to age 63 income for age 65 premiums
80% confidenceNASDAQ 100 has dropped more than 30% in every down year since 1995, but only five down years in 31 years
80% confidenceRoth conversions don't make sense for people planning to leave assets to charity since charities don't pay tax
80% confidenceHSAs are better for younger investors with long compounding periods, while Roth IRAs are better inheritance assets than HSAs
80% confidenceRetirement calculators overvalue Roth benefits by assuming overly long lifespans and giving extra weight to late-life compounding that statistically won't occur
80% confidenceHaving everything in tax-free Roth accounts eliminates ability to utilize lower tax brackets and standard deduction in retirement
80% confidenceTax diversification across pre-tax, Roth, and taxable accounts enables optimization of retirement income on a year-by-year basis
80% confidenceStock Advisor has achieved 991% total average return compared to 196% for S&P 500
80% confidenceQualified Charitable Distributions allow RMDs to go directly to charity, bypassing tax return and controlling AGI
80% confidenceNew mandatory Roth catch-up rule could cause after-tax take-home pay to drop and delays Roth contributions until later in year if not adjusted
80% confidencePenalty for missing RMD is up to 25% of the amount that should have been taken
80% confidenceMarried couples get $30,000 of tax-free income from standard deduction
80% confidence