We didn’t contribute to Roth accounts when we were under the income limit, and for years didn’t think it was a big deal. But now we’re filled with Roth remorse. Here’s why.
Some possible fighting words today, as we delve into the question of whether it makes sense to think of both taxable funds and tax-advantaged retirement funds as one big pool of money. Why does it matter? Because there are a bunch of potentially huge downsides to withdrawing traditional retirement funds early through Roth conversions or rule 72t distributions (or different approaches that exist in other countries). Fortunately, there’s another great option if you’re willing to do a little more math.