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Retire With Ryan

Retire With Ryan

Auteur(s): Ryan R Morrissey
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 If you're 55 and older and thinking about retirement, then this is the only retirement podcast you need. From tax planning to managing your investment portfolio, we cover the issues you should be thinking about as you develop your financial plan for retirement. Your host, Ryan Morrissey, is a Fee-Only CERTIFIED FINANCIAL PLANNER TM who lives and breathes retirement planning. He'll be bringing you stories and real life examples of how to set yourself up for a successful retirement.2020 Retirewithryan.com. All Rights Reserved Finances personnelles Économie
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  • Major Changes Coming To 401K, 403B, and 457 Retirement Plans in 2026, #280

    Major Changes Coming To 401K, 403B, and 457 Retirement Plans in 2026, #280
    Nov 18 2025
    There are important changes coming to 401 (k), 403 (b), and 457 retirement plans in 2026, so I'm focusing on how these updates may impact catch-up contributions for individuals over age 50. With the Secure Act 2.0 on the horizon, higher earners will soon have to make their catch-up contributions as Roth (post-tax) rather than pre-tax contributions, potentially affecting their take-home pay and tax strategies. Tune in as I walk you through what you need to know, how to prepare for these new rules, and actionable steps to make the most of your retirement savings. You will want to hear this episode if you are interested in... [00:00] 2025 retirement contribution limits.[05:26] Roth 401(k) catch-up contribution.[08:05] 2026 salary tax example analysis.[11:37] Tax impact on pre/post contributions.[14:20] Tax-free Roth options. Navigating the 2026 Catch-Up Contribution Changes Employer-sponsored retirement plans, such as 401(k), 403(b), and 457, have long offered "catch-up contributions" for participants aged 50 and above. These extra contributions serve as a valuable tool for bolstering retirement savings during peak earning years. The catch-up contribution limits for 2025 will allow participants to contribute an additional $7,500 on top of the standard $23,500 annual maximum, totaling $31,000. There's also a "super catch-up" for those aged 60-63, which jumps to $11,250. But starting in 2026, the Secure Act 2.0 introduces a pivotal change: If you earned over $145,000 in 2025: You'll be required to make catch-up (and super catch-up) contributions after tax to Roth accounts, not as pre-tax traditional contributions. For those earning under $145,000, it's business as usual; you can still make catch-up contributions pre-tax if you choose. How These Changes Impact Retirement Savers The biggest impact? High-income earners will see an immediate difference in their take-home pay. Traditional pre-tax contributions typically reduce taxable income in the year made, lowering both federal and state taxes. Roth contributions, however, do not offer this upfront tax savings; instead, they provide tax-free withdrawals in retirement. This means that someone earning $170,000 could see their annual tax bill rise by nearly $2,300 when $8,000 of their retirement saving shifts from pre-tax to post-tax Roth dollars. If you earn even more, say, $300,000, the annual difference climbs above $3,500, all while saving the same amount. The tax diversification benefit of Roth accounts remains, but the immediate budget hit is real. Preparing for the 2026 Transition These are my top tips for getting ready for 2026: 1. Check Your Plan's Roth Options: Verify with your HR or retirement plan administrator whether your employer plan supports Roth 401(k) (or equivalent) contributions. If it doesn't, advocate for plan amendments, employers have until 2026 to comply. 2. Assess Payroll Impact: Use online paycheck calculators to estimate your net pay under the new rules.. 3. Consider Alternatives if Roth Isn't Available: If your employer doesn't offer Roth options, you can still open a Roth IRA, though income limits may apply. Those exceeding these limits can explore the "backdoor" Roth IRA strategy or even simply invest in a taxable brokerage account with tax-efficient ETFs. The Long-Term Upside of Roth Savings While losing the immediate tax break feels like a setback, forced Roth contributions offer unique advantages: Tax-Free Growth: Money in Roth accounts grows tax-free, and withdrawals are also tax-free. Estate Planning Boost: Funds left in Roth accounts can pass to heirs with minimal tax consequences. Retirement Flexibility: Roth assets aren't subject to required minimum distributions (RMDs) during the account owner's lifetime. A consistent series of $8,000 annual Roth catch-up contributions, invested over a decade at 6-8% returns, could grow to $105,000 - $115,000 tax-free, with possible doubling over the next two decades if left untouched. Change is coming to catch-up contributions for high earners, beginning in 2026. By understanding these new rules and taking proactive steps now, you can minimize disruption and position yourself for long-term retirement success. The road to retirement is always evolving, make sure your strategy evolves with it. Resources Mentioned Retirement Readiness ReviewSubscribe to the Retire with Ryan YouTube ChannelDownload my entire book for FREE Salary Paycheck Calculator – Calculate Net Income Connect With Morrissey Wealth Management www.MorrisseyWealthManagement.com/contact Subscribe to Retire With Ryan
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    16 min
  • Mapping Out A Plan For Roth Conversions, #279

    Mapping Out A Plan For Roth Conversions, #279
    Nov 11 2025
    If you've spent any time on social media or read personal finance blogs, you've likely encountered a buzz around Roth IRAs and, specifically, Roth conversions. This week I'm discussing the details of Roth conversions, what they are, how they work, and why they're crucial for those looking to optimize their retirement finances. Roth IRAs hold a special appeal: the promise of tax-free income in retirement. And most people would agree that having tax free income in retirement is preferable over having taxable income. Yet, for many people, especially those in their 50s and older, most of their retirement savings sit in pre-tax accounts such as traditional IRAs or 401(k)s. Roth conversions offer a pathway for transforming those tax-deferred assets into tax-free retirement income. This episode is packed with practical insights to help you make informed decisions about your financial future. Tune in to learn more and get ready to take your retirement planning to the next level! You will want to hear this episode if you are interested in... [00:00] The appeal of tax-free income during retirement.[04:43] Key rules for Roth conversions.[08:53] Roth conversion strategies for wealth.[11:58] Roth IRA conversion strategy.[14:47] Roth conversion planning tips. Breaking Down Roth IRA Conversions A Roth IRA conversion involves moving funds from a pre-tax retirement account, like a traditional IRA or 401(k), into a Roth IRA. This process requires you to pay taxes now on the amount you convert, but it grants you future tax-free withdrawals. Anyone with pre-tax retirement funds can consider a conversion, but it's important to understand the rules: Every time you do it, it starts a new five year holding period on the money. If you withdraw converted funds too soon, you might face taxes or penalties. One clever strategy we'll discuss is the Roth conversion ladder. By converting sums incrementally over several years, you gradually move money into the Roth IRA, allowing each batch to satisfy the five-year holding requirement. This helps maximize flexibility and minimize penalties if you need access in retirement. Who Should Consider Roth Conversions? So, who stands to gain the most from Roth conversions? Here are a few key candidates: Those anticipating higher future tax rates: If you're in a low tax bracket now but expect to be in a higher one later, converting at today's lower rates can save you significant money down the road.Anyone wishing to avoid required minimum distributions (RMDs): Roth IRAs aren't subject to RMDs, making them valuable for those who want more control over retirement withdrawals.Individuals aiming to leave a tax-free inheritance: Paying conversion taxes now could shield heirs from larger tax bills, especially if they'll be in a higher bracket.Retirees seeking flexibility: Having both taxable and tax-free buckets to draw from allows for smart tax-efficient withdrawals.Timing is also critical. Converting in years when your income dips, due to sabbaticals, career changes, or early retirement, can dramatically lower the tax impact of conversion. How to Calculate If a Roth Conversion Makes Sense It's tempting to jump into conversions, but I advise running the numbers. Consider a hypothetical: If you convert $50,000 at a 12% federal and 5.5% state tax rate, you pay $12,055 in taxes upfront. If you left the funds in a traditional IRA and paid taxes on withdrawals in retirement at a similar rate, the outcome might be similar, but if future rates rise, the Roth wins out. The more time your converted money has to grow, the greater the tax-free benefit. And if you can pay conversion taxes from outside the retirement account, your Roth can grow even more efficiently. Steps to Execute a Roth IRA Conversion Ready to act? Here's an overview of the process: Open a Roth IRA at your provider.Transfer funds from your pre-tax account.Decide how much to convert and how you'll pay the taxes (from conversion or other accounts).Complete the paperwork.Invest the funds, you want growth!Report conversions on your taxes, especially using IRS Form 8606. Roth conversions are a powerful but nuanced strategy. If you're nearing retirement, anticipate higher future tax rates, or want flexibility and legacy benefits, it may be time to explore this option. I'd advise you to consult a financial advisor familiar with your specific circumstances before you make any financial decisions, doing so ensures your Roth conversion fits seamlessly into your broader retirement plan, maximizing tax-free growth for years to come. Resources Mentioned Retirement Readiness ReviewSubscribe to the Retire with Ryan YouTube ChannelDownload my entire book for FREE Charles Schwab Connect With Morrissey Wealth Management www.MorrisseyWealthManagement.com/contact Subscribe to Retire With Ryan
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    18 min
  • Social Security 2026 Cost Of Living Update, #278

    Social Security 2026 Cost Of Living Update, #278
    Nov 4 2025
    Retirement planning is an ever-evolving process, and staying informed about changes to Social Security, Medicare, and tax limits is crucial to making the most of your golden years. On this episode of Retire with Ryan, I'm sharing important updates on the 2026 Social Security cost of living adjustment (COLA), projected changes to Medicare Part B premiums, and strategies for managing income in retirement. The newly announced cost-of-living adjustment (COLA) for 2026 will see benefit checks rise by 2.8%. I break down how the yearly adjustments are calculated, why they matter for seniors, and the impact of inflation on Social Security. I also discuss the expected jump in Medicare Part B premiums, what IRMAA means for higher-income retirees, and important changes to the Social Security wage base and retirement earnings limits. Whether you're thinking about when to start your benefits or you want to strategize your retirement income, this episode will give you practical tips and resources to help you make the most of your retirement planning. You will want to hear this episode if you are interested in... [00:00] Social Security cost-of-living adjustment (COLA).[02:54] COLA trends and historical adjustments.[04:48] Social Security benefit updates.[10:56] Social Security earnings limit explained.[11:56] Social Security and Medicare updates. What to Expect from Social Security COLA for 2026 After a brief delay caused by a government shutdown, the Social Security Administration (SSA) announced that benefit checks will rise by 2.8% beginning January 2026. This increase is slightly higher than last year's 2.5% and a bit less than the 2024 bump of 3.2%. While not the largest adjustment in history, any increase helps seniors keep pace with the rising costs of essentials like groceries, taxes, and insurance. How is COLA Calculated? SSA bases COLA changes on the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W), specifically by comparing the average index for each month in the third quarter of one year to the same period in the previous year. Since 1972, this approach has pegged benefit adjustments to actual inflation, providing a more predictable and timely increase for beneficiaries. Beneficiaries will receive details about their new benefit amounts in early December. Medicare Part B Premiums The base premium for Medicare Part B is predicted to rise from $185 to approximately $206.50 per month in 2026, a significant increase of roughly 11.6%. Final figures will be released later, but even preliminary estimates suggest a noticeable impact, especially for fixed-income retirees. Income Related Monthly Adjustment Amount (IRMAA) may add further costs to your Medicare premiums if your income exceeds certain thresholds. For 2026, your IRMAA status will be determined by your 2024 tax return, due to a two-year lag in income reporting. Higher earners could see premiums up to $443.90 per month, so it's critical to strategize IRA distributions and capital gains to avoid unnecessary surcharges. If your financial situation changes, such as a recent retirement, you may appeal IRMAA charges using Form SSA-44. Ryan Morrissey recommends reviewing prior episodes and his blog for more on appealing IRMAA. Social Security Taxes and Retirement Income Limits The maximum wage base for Social Security taxes will jump to $184,500 in 2026 (up from $176,100), meaning any income above this threshold won't be subject to Social Security tax. Retirees collecting Social Security before full retirement age must monitor their earned income. For 2026, the limit rises to $24,480. Earnings above this cut-off will reduce your Social Security benefit by $1 for every $2 earned. Once you reach your full retirement year, the earnings limit increases sharply to $65,160, and after your birthday, there's no limit. The latest updates to Social Security and Medicare reflect ongoing efforts to help retirees keep pace with inflation and evolving economic conditions. Successful retirement isn't just about knowing the numbers, it's about strategizing your income to minimize taxes, avoid excess premiums, and maximize your benefits. Resources Mentioned Retirement Readiness ReviewSubscribe to the Retire with Ryan YouTube ChannelDownload my entire book for FREE Connect With Morrissey Wealth Management www.MorrisseyWealthManagement.com/contact Subscribe to Retire With Ryan
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    13 min
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