1 00:00:00,000 --> 00:00:01,290 Intro: Hi, I'm Ed Slott. 2 00:00:01,320 --> 00:00:02,340 And I'm Jeff Levine. 3 00:00:02,430 --> 00:00:06,090 And we are two guys who just love to talk about retirement and taxes. 4 00:00:06,120 --> 00:00:10,050 Look, our mission is simple to educate you, the savers, so that you can make 5 00:00:10,050 --> 00:00:14,130 better decisions because better decisions on the whole lead to better outcomes. 6 00:00:14,160 --> 00:00:15,780 And here's how we're going to do that. 7 00:00:15,840 --> 00:00:20,010 Each week, Jeff and I will debate the pros and the cons of a particular 8 00:00:20,015 --> 00:00:22,880 retirement strategy or topic with the. 9 00:00:23,215 --> 00:00:25,915 Helping you keep more of your hard-earned money. 10 00:00:26,035 --> 00:00:29,425 Yeah, but we won't know which side of the debate we're taking until we flip 11 00:00:29,425 --> 00:00:33,205 a coin winner of the coin flip gets to pick which side of the debate they want 12 00:00:33,205 --> 00:00:37,975 to argue, and both of us will have to argue in favor of our respect positions, 13 00:00:38,185 --> 00:00:40,215 whether we agree with them or not. 14 00:00:40,455 --> 00:00:45,135 At the end of each debate, there's going to be one clear winner you, a more 15 00:00:45,135 --> 00:00:48,585 informed saver who can hopefully apply the merits of each side of the debate 16 00:00:48,855 --> 00:00:52,724 to your own personal situation to decide what's best for you and your family. 17 00:00:52,845 --> 00:00:53,685 So here we go. 18 00:00:53,685 --> 00:00:55,845 Welcome to the Great Retirement Debate. 19 00:01:02,055 --> 00:01:02,834 Jeffrey Levine: All right, everyone. 20 00:01:02,834 --> 00:01:04,604 Welcome back to the Great Retirement. 21 00:01:05,565 --> 00:01:06,715 I'm here with Ed Slott. 22 00:01:06,735 --> 00:01:08,265 Ed, good to be with you as always. 23 00:01:08,744 --> 00:01:12,164 Ed Slott: Great to be back with you and a, again, hitting one of my favorite 24 00:01:12,164 --> 00:01:14,565 topics, Roths, but what kind of Roth? 25 00:01:14,714 --> 00:01:15,645 Which is better? 26 00:01:15,645 --> 00:01:16,574 Some people have money. 27 00:01:16,574 --> 00:01:17,684 They say, where should I put it? 28 00:01:17,684 --> 00:01:20,774 My Roth IRA or Roth 401k. 29 00:01:20,865 --> 00:01:23,565 And sometimes you can do both, so we'll see. 30 00:01:23,955 --> 00:01:24,945 Uh, which is better. 31 00:01:24,945 --> 00:01:30,404 So we have to, uh, flip a coin to see which side of the debate. 32 00:01:31,035 --> 00:01:32,925 You will take and then I will take. 33 00:01:33,115 --> 00:01:33,475 All right. 34 00:01:33,475 --> 00:01:34,285 I have my coin here. 35 00:01:34,615 --> 00:01:36,085 Oh, somebody's gotta call it. 36 00:01:36,145 --> 00:01:36,865 We'll call whatever. 37 00:01:37,225 --> 00:01:37,435 Jeffrey Levine: All right. 38 00:01:37,435 --> 00:01:38,405 I'll take tails, Ed. 39 00:01:39,715 --> 00:01:41,425 Ed Slott: Tails, what did you call? 40 00:01:41,905 --> 00:01:43,045 Jeffrey Levine: I called tails. 41 00:01:43,105 --> 00:01:43,585 Ed Slott: All right. 42 00:01:43,795 --> 00:01:44,605 That's what it is. 43 00:01:44,605 --> 00:01:44,875 All right. 44 00:01:44,935 --> 00:01:46,045 What are you taking? 45 00:01:46,045 --> 00:01:48,295 The Roth 401k or the Roth IRA? 46 00:01:48,415 --> 00:01:50,635 Jeffrey Levine: You know, Ed, we're recording this the 47 00:01:50,635 --> 00:01:52,255 Monday after the Super Bowl. 48 00:01:52,705 --> 00:01:54,265 It's a, it's been a long, you know... 49 00:01:54,270 --> 00:01:56,095 Ed Slott: Well it was a commemorative coin! 50 00:01:56,345 --> 00:01:57,150 Jeffrey Levine: Oh, okay. 51 00:01:57,150 --> 00:01:57,600 All right. 52 00:01:57,600 --> 00:01:58,230 The commemorative coin.. 53 00:01:58,230 --> 00:02:04,230 Ed Slott: One side, I'll be like, the ref, one side is the Roth 401k and the 54 00:02:04,235 --> 00:02:06,530 other side we'll call tails, the Roth IRA. 55 00:02:06,580 --> 00:02:08,950 Jeffrey Levine: Well, I am going to take, yeah, I'm gonna take the 56 00:02:08,950 --> 00:02:12,310 Roth IRA as the better vehicle here. 57 00:02:12,550 --> 00:02:15,160 Uh, I'm gonna, I'm gonna stick it to you the Monday after the Super Bowl. 58 00:02:15,720 --> 00:02:16,210 Ed Slott: Yeah. 59 00:02:16,210 --> 00:02:16,716 All right. 60 00:02:16,716 --> 00:02:17,016 I like.. 61 00:02:17,606 --> 00:02:20,096 So it's a tough call because I like tax free. 62 00:02:20,366 --> 00:02:20,756 All right. 63 00:02:20,816 --> 00:02:23,396 So I'm taking the Roth 401k. 64 00:02:23,936 --> 00:02:26,366 Jeffrey Levine: Yeah, and I'm gonna take the Roth IRA and boy 65 00:02:26,366 --> 00:02:28,016 Ed, I've got a list a mile long. 66 00:02:28,016 --> 00:02:32,176 So out of, out of, out of courtesy on this one, I'll let you make the first argument. 67 00:02:32,176 --> 00:02:33,926 Ed Slott: All right, all right, the Roth 401k. 68 00:02:33,931 --> 00:02:35,126 What's better about it? 69 00:02:35,126 --> 00:02:39,236 All right, uh, I'll ask you, Jeff, how much can you put in a 70 00:02:39,446 --> 00:02:42,236 contribute to a Roth IRA in a year? 71 00:02:42,686 --> 00:02:45,686 Jeffrey Levine: Uh, let's see, $6,500 for this year. 72 00:02:45,986 --> 00:02:49,016 $7,500 if I'm 50 or over by the end of the year. 73 00:02:49,496 --> 00:02:52,916 Ed Slott: Alright, so would 30,000 be higher than that? 74 00:02:53,876 --> 00:02:54,926 Jeffrey Levine: Checks the math. 75 00:02:54,926 --> 00:02:57,606 Carry the one, uh, yes, yes, yes it would. 76 00:02:57,606 --> 00:02:57,816 Ed Slott: All right. 77 00:02:57,836 --> 00:03:03,176 For 2023, those are the limits for the Roth 401k or regular 401k limits, 78 00:03:03,416 --> 00:03:08,186 22,500 with the catch up, 7,500 more. 79 00:03:08,186 --> 00:03:13,586 It's the first time I believe it's ever hit 30,000, uh, that you can put in with 80 00:03:13,586 --> 00:03:20,891 a, Roth 401k, and remember coming up with Secure 2.0, some people might get 81 00:03:20,891 --> 00:03:26,171 extra catch ups going in there, that could really pile on in a Roth 401k. 82 00:03:26,351 --> 00:03:27,671 So there's another advantage. 83 00:03:27,671 --> 00:03:29,801 Higher annual contribution limit. 84 00:03:30,311 --> 00:03:32,651 Uh, Jeff, I'll throw you another question. 85 00:03:32,921 --> 00:03:38,891 Uh, why is it some people can't contribute to a Roth IRA? 86 00:03:39,431 --> 00:03:42,431 Jeffrey Levine: Because they're not aware of the backdoor Roth to get around 87 00:03:43,571 --> 00:03:46,571 Ed Slott: Well, that's that's gonna be where, how you answer me back. 88 00:03:46,631 --> 00:03:47,231 Jeffrey Levine: That's right. 89 00:03:47,361 --> 00:03:48,711 No, because they make too much money. 90 00:03:48,711 --> 00:03:49,221 Of course. 91 00:03:49,251 --> 00:03:49,611 Yes. 92 00:03:49,616 --> 00:03:49,771 Ed Slott: Right. 93 00:03:49,771 --> 00:03:49,971 Yes. 94 00:03:49,976 --> 00:03:56,091 Uh, and there are no limits, income limits on who can contribute to a Roth 401k. 95 00:03:57,071 --> 00:03:58,451 What if you get in trouble? 96 00:03:58,751 --> 00:04:02,381 Uh, Roth 401ks, you know, part of a regular 401k. 97 00:04:02,381 --> 00:04:06,341 Generally, generally an ERISA plan, which means it's got 98 00:04:06,341 --> 00:04:08,681 rock solid creditor protection. 99 00:04:09,371 --> 00:04:10,691 Uh, I don't think so. 100 00:04:10,691 --> 00:04:14,651 You know, that goes by state law when you have IRAs and Roth IRAs 101 00:04:14,656 --> 00:04:16,211 and they may not be as good. 102 00:04:16,481 --> 00:04:19,421 Uh, when I'm talking about creditor protection, it's the gold 103 00:04:19,421 --> 00:04:25,526 standard in an ERISA plan, employee Retirement Income Security Act, uh, 104 00:04:25,526 --> 00:04:29,816 that's the gold standard, both for bankruptcy and other judgements. 105 00:04:30,086 --> 00:04:35,746 You get that in a much stronger creditor protection in a Roth 401k. 106 00:04:36,461 --> 00:04:39,431 Jeffrey Levine: You know, I, I'll, I'll, I'll pick and knit with you there. 107 00:04:39,821 --> 00:04:43,691 Uh, some places you get much stronger creditor protection, but in, in the, as 108 00:04:43,691 --> 00:04:45,191 you said, it's a state by state issue. 109 00:04:45,196 --> 00:04:49,851 In the overwhelming majority of states, your IRA or your Roth IRA 110 00:04:49,871 --> 00:04:52,961 will have roughly an equivalent protection under state law. 111 00:04:53,486 --> 00:04:58,946 That the, uh, now in, in, in fairness in some places, including perhaps our most 112 00:04:58,946 --> 00:05:03,596 populous state, uh, the, the rules are not nearly as favorable at the IRA level, 113 00:05:03,596 --> 00:05:09,386 but in, in most places, most people have about the same protection for their Roth. 114 00:05:09,626 --> 00:05:11,996 Of course, if creditor protection is an issue for you, you 115 00:05:11,996 --> 00:05:13,826 don't want most, you want all. 116 00:05:13,826 --> 00:05:17,856 So I, I will, I will somewhat seed to you there, but I gotta stop you, Ed. 117 00:05:18,396 --> 00:05:23,166 You know, one of the big things, one of the big benefits about, uh, a, a Roth 118 00:05:23,166 --> 00:05:26,496 IRA is it's tax-free nature, right? 119 00:05:26,496 --> 00:05:29,316 And, and, and the ability to invest tax-free for the long run. 120 00:05:29,316 --> 00:05:29,976 Would you agree? 121 00:05:30,366 --> 00:05:30,666 Ed Slott: Yeah. 122 00:05:31,026 --> 00:05:31,476 Jeffrey Levine: Okay. 123 00:05:31,926 --> 00:05:38,121 And so that means that you probably wanna put your best or highest 124 00:05:38,121 --> 00:05:40,671 appreciating, let's call that your, and I don't wanna say your best, 125 00:05:40,671 --> 00:05:43,791 but your, your highest appreciating investments or the things that you 126 00:05:43,791 --> 00:05:46,281 believe over time will go up the most. 127 00:05:46,851 --> 00:05:47,181 Right. 128 00:05:47,181 --> 00:05:48,051 Would you agree with that? 129 00:05:48,081 --> 00:05:48,411 Ed Slott: Yep. 130 00:05:48,411 --> 00:05:49,701 I'm waiting for the setup. 131 00:05:49,711 --> 00:05:52,161 I, I can feel myself getting set up here. 132 00:05:52,161 --> 00:05:52,761 Jeffrey Levine: That's it. 133 00:05:52,761 --> 00:05:56,571 There's a, there's a aha here coming and the aha is, you know, with the plan. 134 00:05:57,231 --> 00:05:59,991 You are stuck in almost all situations. 135 00:05:59,991 --> 00:06:04,431 Very, very, very rarely does the plan give you more flexibility, 136 00:06:04,791 --> 00:06:09,921 be besides, let's say a, a limited lineup of choices that the plan has 137 00:06:09,921 --> 00:06:13,101 chosen for you and with a Roth ira. 138 00:06:13,461 --> 00:06:18,141 Really the, the world is your oyster other than perhaps, uh, you 139 00:06:18,141 --> 00:06:23,631 know, collectibles, life insurance and s corporation securities. 140 00:06:24,051 --> 00:06:28,941 You can own just about anything inside your Roth IRA that you want, which means 141 00:06:29,001 --> 00:06:33,651 you can pick the investments that you believe will go up the most from a much 142 00:06:33,651 --> 00:06:36,501 wider assortment of, of, of choices. 143 00:06:36,951 --> 00:06:38,241 And that's a big deal. 144 00:06:38,516 --> 00:06:41,036 That that's a big deal and that's perhaps the biggest benefit of 145 00:06:41,036 --> 00:06:46,136 the Roth IRA for for most retirees relative to the Roth 401k. 146 00:06:46,821 --> 00:06:47,841 Ed Slott: It's one benefit. 147 00:06:48,081 --> 00:06:52,401 Here's another benefit I talked about, uh, higher contributions. 148 00:06:52,761 --> 00:06:57,141 Uh, when you have your own Roth IRA, are there other people around 149 00:06:57,141 --> 00:06:59,271 that can match your contributions? 150 00:06:59,541 --> 00:07:00,351 Like friends? 151 00:07:01,911 --> 00:07:04,731 Jeffrey Levine: I mean, I guess it depends how nice your friends are, but, uh, no. 152 00:07:04,736 --> 00:07:07,071 In general, you, you, you, you probably would not have matching 153 00:07:07,511 --> 00:07:08,301 contributions for your Roth. 154 00:07:08,301 --> 00:07:08,481 No. 155 00:07:08,511 --> 00:07:13,281 Ed Slott: Which you could have in your Roth 401k and under secure 2.0. 156 00:07:13,631 --> 00:07:19,091 Uh, soon those matching contributions can go to the Roth 401k side, beefing up your 157 00:07:19,091 --> 00:07:22,721 . Roth 401k contributions, uh, that way. 158 00:07:22,726 --> 00:07:24,101 So that's another benefit. 159 00:07:25,091 --> 00:07:26,731 For the Roth 401k. 160 00:07:26,931 --> 00:07:30,261 Jeffrey Levine: Even so far we've focused on the, the big benefit long term of, 161 00:07:30,261 --> 00:07:33,921 of people who are, are using these accounts for, for their intended purpose. 162 00:07:33,921 --> 00:07:39,081 But you know, Ed, as we know, life gets in the way and not everyone who puts 163 00:07:39,081 --> 00:07:42,981 money into a retirement account is lucky enough to be able to wait until retirement 164 00:07:42,981 --> 00:07:44,411 account, a retirement to use it. 165 00:07:44,961 --> 00:07:48,771 And while we're certainly not encouraging folks to raid their retirement accounts, 166 00:07:48,981 --> 00:07:53,571 we do know that for various reasons people need to access money sooner. 167 00:07:54,231 --> 00:07:59,271 If you have a Roth IRA, one of the best things about it for, for young people 168 00:07:59,271 --> 00:08:03,621 in particular who are worried about what if I need the money for whatever, right? 169 00:08:03,621 --> 00:08:08,661 Uh, for, for anything else with Roth IRAs, whatever I put in, in the 170 00:08:08,661 --> 00:08:14,211 form of contributions I can take out immediately without a tax, without 171 00:08:14,211 --> 00:08:18,201 a penalty, and without a reason and without age justification for 172 00:08:18,201 --> 00:08:23,821 any reason, for any purpose, at any time, I can take what I put in, out. 173 00:08:24,171 --> 00:08:29,466 Now if you have a Roth 401K and you've put in money over the years, and 174 00:08:29,466 --> 00:08:32,556 you've been fortunate enough to have some earnings in there, so you've got 175 00:08:32,556 --> 00:08:36,456 kind of a mix now of the money you've put in plus the earnings, et cetera, 176 00:08:36,461 --> 00:08:37,616 are you able to do the same thing? 177 00:08:38,706 --> 00:08:40,446 Ed Slott: No, no, you got me on that. 178 00:08:40,686 --> 00:08:45,425 There're a different, uh, first of all, ordering rules in a Roth 401k, 179 00:08:45,425 --> 00:08:49,016 without getting too technical, it's exactly as you said with a Roth IRA, 180 00:08:49,266 --> 00:08:52,356 your original contributions should be withdrawn anytime any reason. 181 00:08:52,356 --> 00:08:55,296 Tax and penalty free, cause that's the order they come out. 182 00:08:55,566 --> 00:08:59,196 First those, uh, contributions come out, then conversions and you don't 183 00:08:59,196 --> 00:09:04,136 hit the earnings till the last layer as opposed to most distributions. 184 00:09:04,141 --> 00:09:08,666 There are some exceptions from, uh, Roth 401ks and 401ks in general. 185 00:09:08,846 --> 00:09:13,046 You follow what's called a pro rata rule, where each distribution has a 186 00:09:13,051 --> 00:09:18,056 piece of the earnings, so it's not as advantageous if you have to, if 187 00:09:18,056 --> 00:09:19,646 you, you want to get that money out. 188 00:09:19,936 --> 00:09:20,206 Jeffrey Levine: Right. 189 00:09:20,206 --> 00:09:23,146 Cause those earnings are what would be subject to tax and a penalty. 190 00:09:23,386 --> 00:09:24,136 Ed Slott: That's correct. 191 00:09:24,436 --> 00:09:28,936 But another benefit of, uh, Roth 401ks, and by the way, as I said, 192 00:09:28,936 --> 00:09:31,966 I'm a big Roth fan either way, and we're gonna get to that in a minute. 193 00:09:32,326 --> 00:09:36,196 Uh, one of the things you talked about needing the money, uh, with 194 00:09:36,256 --> 00:09:40,486 a Roth 401k, if it's a part of a plan that offers loans, that may 195 00:09:40,486 --> 00:09:44,966 be an option you absolutely don't have with IRAs and Roth IRAs. 196 00:09:45,681 --> 00:09:47,451 Jeffrey Levine: Well, that, that's true, but if I could take my own 197 00:09:47,451 --> 00:09:48,771 money back, I may not need a loan. 198 00:09:48,771 --> 00:09:50,871 So I'll, I will argue on that one. 199 00:09:50,871 --> 00:09:53,841 And you know what, Ed, I, I think one other thing that's really interesting to 200 00:09:53,841 --> 00:10:00,951 note here, i, i, is that the Roth IRA is something that allows you to, uh, to, to 201 00:10:00,951 --> 00:10:05,091 be flexible, to choose where you want to hold it, not only for investment purposes, 202 00:10:05,091 --> 00:10:07,701 but also for estate tax planning. 203 00:10:07,911 --> 00:10:08,541 Ed Slott: That's true. 204 00:10:08,541 --> 00:10:11,761 Jeffrey Levine: For if, if you wanna have multiple accounts, you can set that up. 205 00:10:11,921 --> 00:10:15,616 If you have, uh, certain beneficiaries that you want to keep separate, you can. 206 00:10:15,976 --> 00:10:20,476 So there's a lot more flexibility with the Roth IRA than there is the plan. 207 00:10:20,476 --> 00:10:23,596 At the end of the day, the Plan Roth is still a plan account. 208 00:10:24,246 --> 00:10:24,636 Ed Slott: All right. 209 00:10:24,636 --> 00:10:25,836 Trick question now. 210 00:10:25,836 --> 00:10:28,136 Uh, let's talk about RMDs. 211 00:10:28,141 --> 00:10:31,696 Roth IRAs have no lifetime RMDs. 212 00:10:31,926 --> 00:10:33,456 Jeffrey Levine: Ah, see that's a win for me. 213 00:10:33,816 --> 00:10:34,446 Oh, oh, wait. 214 00:10:34,506 --> 00:10:35,946 Or, or, or is it. 215 00:10:36,366 --> 00:10:37,386 It used to be a win. 216 00:10:37,386 --> 00:10:40,356 In fact, if we had recorded this ad just a few months ago, 217 00:10:40,566 --> 00:10:42,096 that would've been a big pro. 218 00:10:42,101 --> 00:10:47,346 I would've been my, that would've been my, you know, my, my number one argument 219 00:10:47,346 --> 00:10:53,531 for you is that Roth IRAs have no RMDs, but as we know, That is now equal under 220 00:10:53,531 --> 00:10:56,321 the, at least beginning in 2024, Ed, for.. 221 00:10:56,741 --> 00:10:58,331 Ed Slott: That would've been your drop the mic. 222 00:10:58,751 --> 00:10:59,471 Jeffrey Levine: That's, that's it. 223 00:11:00,521 --> 00:11:06,371 I, I got one more year where the Roth IRA remains advantageous and that's in 2023. 224 00:11:06,641 --> 00:11:10,531 Roth IRA still have no required minimum distributions, but Plan Roths do. 225 00:11:10,531 --> 00:11:16,131 Imagine being 75, 76 years old this year and having to take money 226 00:11:16,131 --> 00:11:22,941 out of a Roth 401k account, that's growing tax and penalty free before 227 00:11:22,971 --> 00:11:24,321 you actually needed the money. 228 00:11:24,321 --> 00:11:26,301 It would be criminal almost to do that. 229 00:11:26,781 --> 00:11:27,111 Ed Slott: Right. 230 00:11:27,111 --> 00:11:28,071 So that goes away. 231 00:11:28,071 --> 00:11:31,971 That's a good change In secure 2.0, no lifetime. 232 00:11:31,976 --> 00:11:33,501 I, uh, same thing with the Roth. 233 00:11:33,501 --> 00:11:36,876 We're only talking about no lifetime RMDs, the beneficiary issue. 234 00:11:37,161 --> 00:11:38,121 That's another issue. 235 00:11:38,121 --> 00:11:42,201 They still follows the other, the other general rules for beneficiaries. 236 00:11:42,651 --> 00:11:46,386 But here's an interesting thing you know, maybe you can do 237 00:11:46,386 --> 00:11:48,246 both, cause we have this debate. 238 00:11:48,246 --> 00:11:49,086 We like the Roth. 239 00:11:49,086 --> 00:11:50,736 We like the Roth 401k. 240 00:11:50,741 --> 00:11:52,166 Jeffrey Levine: That is, that is the show, Ed. 241 00:11:52,166 --> 00:11:53,376 That's the whole premise of the show. 242 00:11:53,376 --> 00:11:53,556 Ed Slott: Yeah. 243 00:11:53,556 --> 00:11:53,826 Yeah. 244 00:11:54,321 --> 00:11:54,726 All right. 245 00:11:54,996 --> 00:11:56,946 But, uh, can't you do both? 246 00:11:57,226 --> 00:11:59,116 You know, a lot of people don't know this. 247 00:11:59,296 --> 00:12:05,026 If you have the disposable income and you qualify for a Roth IRA contribution 248 00:12:05,026 --> 00:12:09,576 or a backdoor Roth, how you can get money in and you have the money 249 00:12:09,576 --> 00:12:12,066 to load up on a Roth 401k at work. 250 00:12:12,066 --> 00:12:13,476 You can actually do both. 251 00:12:13,686 --> 00:12:17,496 I know some people think you can't, cause it almost sounds too good to be true. 252 00:12:18,456 --> 00:12:18,786 Jeffrey Levine: It is. 253 00:12:18,786 --> 00:12:20,916 It's a great, uh, it's, it's great when you can do it. 254 00:12:20,916 --> 00:12:24,786 Now, it is a little bit limited in the sense that if you have that much 255 00:12:24,786 --> 00:12:28,621 disposable income, your income is probably high enough that you don't qualify to 256 00:12:28,621 --> 00:12:33,001 go directly into the Roth IRA, but for those where it, it, it, it, you know where 257 00:12:33,001 --> 00:12:36,151 you have it, maybe have other savings that you can live off of, you know, 258 00:12:36,151 --> 00:12:38,821 someone who's, uh, who's able to do that. 259 00:12:38,826 --> 00:12:42,816 That it, it is a home run and Ed, you know, more, this is a 260 00:12:42,816 --> 00:12:44,676 case where more is better, right? 261 00:12:44,676 --> 00:12:46,776 Like this, this some is getting more is better. 262 00:12:47,016 --> 00:12:50,316 Ed Slott: The only reason I bring it up, because we're debating, we almost 263 00:12:50,376 --> 00:12:55,086 sounding like, well, do you have to choose between a Roth IRA and a Roth 401k? 264 00:12:55,386 --> 00:12:56,086 You can have both. 265 00:12:56,526 --> 00:12:57,726 If you have the income. 266 00:12:57,966 --> 00:12:59,286 So that's the story. 267 00:12:59,286 --> 00:13:02,586 Uh, we both like Roths, however you can get them in there. 268 00:13:02,586 --> 00:13:07,386 Roth IRA, or Roth 401k, they both grow tax free for the rest of your 269 00:13:07,386 --> 00:13:11,136 life and even beyond, even under the limitations of the Secure Act for 270 00:13:11,141 --> 00:13:12,846 another 10 years for most people. 271 00:13:13,261 --> 00:13:14,611 Jeffrey Levine: On that, Ed, we agree. 272 00:13:14,911 --> 00:13:17,761 And another thing we agree on is that while there are two sides 273 00:13:17,761 --> 00:13:21,631 to every coin, your life and your retirement decisions are too 274 00:13:21,631 --> 00:13:23,341 important to leave up to a coin flip. 275 00:13:23,671 --> 00:13:27,721 And that's why one thing that we continue to agree on, Ed is that if 276 00:13:27,721 --> 00:13:31,951 there is a big decision in your life, You wanna make sure you're talking 277 00:13:31,951 --> 00:13:35,611 that through with a knowledgeable financial advisor or tax professional 278 00:13:35,881 --> 00:13:39,331 so that you can weigh the pros and the cons of different options against your 279 00:13:39,781 --> 00:13:41,581 specific set of goals and circumstances. 280 00:13:41,821 --> 00:13:46,141 Trying to figure out whether a Roth IRA or Roth 401k is right for you. 281 00:13:46,141 --> 00:13:49,081 It's great to have the knowledge that you can get from this podcast, but 282 00:13:49,081 --> 00:13:52,941 you need to talk through big decisions like with a knowledgeable professional. 283 00:13:53,781 --> 00:13:59,691 Ed, there are lots of benefits to both Roth IRAs and Roth 401ks and you 284 00:13:59,696 --> 00:14:03,081 know, maybe we missed something or maybe we've persuaded some listeners. 285 00:14:03,081 --> 00:14:07,131 So we'd love to hear from you if, uh, if you'd like to give Ed and I a 286 00:14:07,131 --> 00:14:11,046 shout and let us know what we missed or what you thought and whether you 287 00:14:11,046 --> 00:14:15,246 think the Roth 401k or the Roth IRA is the better vehicle for you and why? 288 00:14:15,426 --> 00:14:16,206 Reach out to us. 289 00:14:16,206 --> 00:14:16,806 Let us know. 290 00:14:16,806 --> 00:14:20,436 You can hit up Ed on Twitter @TheSlottReport that's 291 00:14:20,496 --> 00:14:25,246 @TheSlottReport or myself @CPAPlanner. 292 00:14:25,266 --> 00:14:27,536 Again, that's @CPAPlanner. 293 00:14:27,756 --> 00:14:30,666 We look forward to hearing from your comments and would love to know what we 294 00:14:30,666 --> 00:14:33,486 should debate in an upcoming episode, Ed? 295 00:14:33,606 --> 00:14:33,906 Ed Slott: Yep. 296 00:14:33,906 --> 00:14:36,366 Plenty more to come on the great retirement debate. 297 00:14:36,371 --> 00:14:37,341 See you next time! 298 00:14:37,861 --> 00:14:41,116 Outro: Jeffrey Levine is Chief Planning Officer for Buckingham Wealth Partners. 299 00:14:41,146 --> 00:14:44,356 This podcast is for informational and educational purposes only, and should 300 00:14:44,356 --> 00:14:47,626 not be construed as specific investment accounting, legal or tax advice. 301 00:14:47,656 --> 00:14:50,566 Certain information mentioned may be based on third party information, 302 00:14:50,566 --> 00:14:53,416 which may become outdated or otherwise superseded without notice. 303 00:14:53,476 --> 00:14:56,686 Third party information is deemed to be reliable, but it's accuracy and 304 00:14:56,686 --> 00:14:58,156 completeness cannot be guaranteed. 305 00:14:58,276 --> 00:15:01,276 The topic discussed in corresponding arguments are those of the speakers 306 00:15:01,456 --> 00:15:04,246 and may not accurately reflect those of Buckingham Wealth partners.