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MARCH 2023
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With These 5 Roth Conversions MOVE YOUR MONEY INTO A ROTH IRA
In retirement, income-related expenses like Medicare Part B and D determine your premium. Therefore, if you’re pulling from your retirement, you should ensure you don’t exceed the brackets that Medicare looks at as well.
As you may or may not know, the money you put into your IRA (or 401(k), 403(b), and 457, etc.) is usually taxed when you take it out.
However, with a Roth IRA, the money you remove from this account can be entirely tax-free. So, many people are naturally trying to get money into Roths for tax-free benefits. But when it comes to converting your retirement plan into a Roth IRA, you should be aware of a few different methods — and limitations. So, here are the five different kinds of Roth conversions and the essential details you should know about each. No. 1: Bracket Bumping Conversions When you pull money from your IRA to convert a Roth, it’s usually all taxable, and unfortunately, this is just the price you must pay to get your money into a Roth. With the Bracket Bumping method, we only want to convert enough of the IRA to stay in the proper tax bracket. This is because the U.S. has a progressive tax system, meaning you pay more taxes the higher you move between these tax brackets. You want to avoid jumping into the next tax bracket if you can help it.
No. 2: Market-Timing Conversions Because you pay taxes on the money that goes from the IRA to the Roth, it makes more sense to convert securities that have gone down in value due to our current market corrections. Since the security is lower in value, you won’t pay as much tax removing it from the IRA as you would if you waited until it gained value when the market was high again.
Then, once you move the security into the Roth, it recovers tax-free!
No. 3: Backdoor Roth Conversions There are income limitations on those who can contribute to a Roth IRA For the 2023 tax year, the maximum total annual contributions are $6,500 if you’re under 50 and $7,500 if you’re 50 or older. So, it could be that you can’t contribute to a Roth due to your income limit. However, a backdoor Roth conversion provides an IRS-approved workaround. There are no income limits to contribute to a traditional IRA, and conversions to Roth accounts are unlimited . So, you may be able to contribute to a traditional IRA and then immediately convert that to a Roth because conversions have no earning limits. No. 4: Mega Backdoor Roth Conversions If you work for a company with a company retirement plan, like a 401(k), 403(b), or 457, you may be able to contribute more than the pre-tax limit and then move the excess into a Roth from your after-tax account. For example, the 2023 pre-tax limit is $22,500 (with an extra $7,500 if you’re 50 and up), so let’s say you contributed $40,000 to your 401(k) this year. In that case, $22,500 of that $40,000 will go into your 401(k), while $17,500
BRIDGERIVER MARCH 2023 SEMINAR DATES Mar 2 - 6:30 Filippas Top 3 Annuities for Explosive Income & Safe Growth Mar 7 & 9 - 6:00 Filippas Retirement Planning Hosted by Krisstin Petersmarck Mar 7 & 9 - 6:30 Iroquois Club Top 3 Annuities for Explosive Income & Safe Growth Mar 14 & 16 - 6:30 Filippas More Income & Less Taxes Mar 21 & 23 - 6:30 Filippas The Top 5 Tax Strategies Every Retiree Needs to Know Mar 28 & 30 - 6:30 Filippas The Top 5 Tax Strategies Every Retiree Needs to Know
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Garden Season Is Almost Here Are You Prepared?
Are Your Tools Ready? Utilizing the proper tools will help make your gardening tasks much more manageable. During the final few weeks of winter and the first week of spring, spend some time in your shed or garage to get your tools cleaned up. Use your hose to remove any excess dirt from the previous gardening season and a wire brush to remove rust. You should soak your smaller tools in soapy water, but be sure to rinse and dry them afterward. Coating your wood handles with linseed oil will keep them in better shape for longer. Once your tools are pristine, it’s time to move into your gardening space. Clean Up Your Gardening Space If you’ve gardened in previous years, you probably already have a space for vegetables, flowers, and other plants. You should create a dedicated space for your crops if you don’t. Once you have a space, you need to get it cleaned up. Start by removing any leaves, branches, and other debris that’s fallen into the area. Also, remove any dead plants around the area. Once the area is clear, you should lay down your mulch if it’s needed for any of your plants. This will help regulate moisture and keep your soil at a consistent temperature while fending off pesky weeds. Get Your Seeds and Soil Prepared Now that your tools and space are ready to garden, you can get your seeds and soil ready. Pick out the best soil for the plant you’re growing and your location. Before laying your soil, check the area for weeds, and pull them as soon as you see them. Continue this practice until the weeds have stopped sprouting. Now, you’re ready to start planting. Get your preferred seeds from the store and plant them according to the packet instructions. You can add Miracle-Gro plant food to give your plants the best chance of surviving. When you start your gardening preparations early, you set yourself up for the best chance of successfully growing flowers, vegetables, fruits, and other plants. Good luck with your gardening adventures this spring!
The spring season officially kicks off on March 20. If you’re planning to have a garden this year and haven’t started preparing yet, now is the time to do so. Without proper planning, creating a successful garden can be very difficult. Take the next few weeks to get your ducks in a row, so you can start planting your seeds as soon as possible to grow healthy, beautiful fruits and flowers. If you’re unsure what to do to prepare properly, don’t stress or worry; we’ve got you covered! Below, you’ll find a few tricks to set your garden up for success.
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EXPLORE THESE POWERFUL FEMALE-DRIVEN MOVIES
During Women’s History Month
Throughout history, there have been countless women who have performed awe- inspiring feats. From Joan of Arc to Amelia Earhart, there are many women you can research who helped change the world for the better. And there’s no better way to teach your children about these amazing women than watching a movie about their accomplishments. Here’s a list of movies worth watching to recognize Women’s History Month. ‘Hidden Figures’ Movies about astronauts and space travel usually do well at the box office, but they often don’t focus on the efforts made behind the scenes. “Hidden Figures” flips the script and tells the story of Katherine Johnson, Mary Jackson, and Dorothy Vaughan, three black women who helped turn the tide of the space race in America’s favor. These women crossed numerous barriers to play fundamental roles in the effort to send John Glenn into space. It’s an inspirational watch that will help your children realize they can accomplish anything. ‘Suffragette’ In today’s society, many of us take our rights for granted, but there was a time when many didn’t even have the right to vote. “Suffragette” tells the story of the British women who sacrificed everything to help all women gain the ability to vote over 100 years ago. They used art, debate, propaganda, and even vandalism in their protests.
Their efforts led to the passing of the Representation of the People Act, which granted some women the right to vote. American women gained their right to vote shortly after. This movie is rated PG-13 due to some intense violence, so viewer discretion is advised. ‘Harriet’ Harriet Tubman is one of the most well-known individuals from the Underground Railroad and the Civil War era. Most of us know she was instrumental in helping hundreds escape slavery, but how much more do you know about the woman behind the actions? “Harriet” takes a deep dive into Tubman’s life by exploring her early life and showing how she became a leader in the Underground Railroad.
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Classic Cabbage Rolls
will move into an after-tax account. Then, you can convert that after-tax account into a Roth.
It’s important to note that the IRS may remove this option, so keep in mind that it may eventually go away.
Inspired by TasteOfHome.com
Ingredients
No. 5: SEP to Roth Conversion Self-employed individuals can open a SEP IRA or a Simplified Employee Pension Individual Retirement Arrangement and contribute up to $66,000 for the 2023 tax year toward their retirement. So, if you’re self-employed, you can contribute up to the maximum amount and then convert the deduction into a Roth. If you’re interested in the tax-free benefits of a Roth IRA but need help deciding which conversion method is right for your needs, call us at 248.785-3734. We’ll
• 1 medium head cabbage • 1 1/2 cups chopped onion, divided • 1 tbsp butter • 2 14.5-oz cans Italian stewed tomatoes • 4 garlic cloves, minced
• 1 cup cooked rice • 1/4 cup ketchup • 2 tbsp Worcestershire sauce • 1/4 tsp pepper • 1 lb lean (90%) ground beef • 1/4 lb Italian sausage
• 2 tbsp brown sugar • 1 1/2 tsp salt, divided
Directions
1. In a Dutch oven, cook cabbage in boiling water for 10 minutes; drain. Rinse in cold water; drain. Remove 8 large outer leaves; set aside. 2. In a large saucepan, sauté 1 cup onion in butter. Add tomatoes, garlic, brown sugar, and 1/2 tsp salt. Simmer sauce for 15 minutes, stirring occasionally. 3. In a large bowl, combine rice, ketchup, Worcestershire sauce, pepper, and remaining onion and salt. Crumble beef and sausage over mixture and mix. 4. Remove thick vein from cabbage leaves for easier rolling. Place 1/2 cup meat mixture on each leaf; fold in sides. Starting at an unfolded edge, roll leaf to completely enclose filling. Place rolls seam side down in a skillet. Top with sauce. 5. Cover and cook over medium-low heat for 1 hour. Reduce heat to low; cook 20 minutes longer or until a thermometer inserted reads 160 F.
help you find the best way to enjoy retirement with the least tax exposure possible.
-Dan Casey President, Bridgeriver Advisors
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INSIDE
This Issue The 5 Types of Roth Conversions Tricks to Help You Prepare for Gardening Season Movies Featuring Prominent Women in History
Classic Cabbage Rolls
Pro Tips to Organize Your Home This Spring
Add Organization to Your Spring-Cleaning List!
4 Tips to Keep Your House Tidy
It’s March — the month of spring-cleaning! While many often think of scrubbing the windows or washing the floors, spring is the perfect time to reorganize your house into a more efficient space. And no, you don’t need fancy storage furniture or shiny color-coded bins to get your home in order. There are many small things you
in there as well!). This way, you’ll never have to hunt for the matching sheets again!
tangled and hard to differentiate. By wrapping a piece of painter’s or washi tape around a cord, you can create a tag to write what that cord is attached to. So, no more guessing which cords you’re unplugging! Add some chalkboard paint to your jars. Sometimes, we have no idea what’s inside the jars in our pantry. Maybe it’s flour, or maybe it’s powdered sugar. Sometimes, it can be neither! To solve this, you can buy a little jar of chalkboard paint at your nearest craft store and paint squares on your jars (or other unlabeled containers around the house) to write with chalk what’s inside! The best part is you can erase these labels and change them based on the jar’s contents. These hacks will help you give your spring cleaning a major boost by keeping your home neat and tidy for the rest of the year!
Use an old disinfecting wipes container to store your plastic bags. If you like to reuse plastic shopping bags at home, finding a way to store them can be a pain. Next time you run out of Clorox Wipes (or another generic equivalent), rinse the inside of the container with water and store your plastic bags there. Then with the container’s built-in feeding lid, you’ll be able to pull the bags out one by one as you need them. Label messy cords with tape. As working from home and numerous consumer electronics (shut up, Alexa!) become more prevalent in our lives, the cords connecting these devices can become
can do just by using clever tricks and throwaway household items. So, try these organization hacks to tidy your home this month and beyond.
Keep your matching bed sets together by using a pillowcase to store them. Organize your linen closet by slipping the flat and fitted sheets into one of their respective matching pillowcases (fold the other pillowcase
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