How Your IRA Fits Into Retirement

IRA planning involves making decisions about how to contribute to, invest, convert, withdraw from, and eventually pass on your retirement accounts. These decisions can affect your retirement income, taxes, required minimum distributions (RMDs), and the assets left to your beneficiaries.

From our offices in Glastonbury and Wilton, Connecticut, Capital Wealth Management, LLC helps individuals and families understand their options and how IRA-related decisions fit into their broader retirement plans.

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How We Help with IRA Planning

IRA decisions rarely affect just one part of your financial life. A choice that makes sense from one perspective may have different implications for your taxes, retirement income, investments, or estate plan.

We help you look at questions such as:

Should you contribute to a Traditional IRA or a Roth IRA?
What should you do with an old employer retirement account?
When and how should you begin taking withdrawals?
Could a Roth conversion be worth considering?
How can you prepare for required minimum distributions?
Do your beneficiary designations still reflect your wishes?
How might inherited IRA rules affect you or your family?

Because IRA rules, tax laws, and personal circumstances can change, it's often helpful to revisit these decisions periodically.

Why Our Connection to Ed Slott’s Group Matters

Capital Wealth Management is a member of Ed Slott’s Elite IRA Advisor Group^SM, a nationally recognized IRA education organization.

Through our membership, we participate in ongoing training related to IRA rules, retirement planning, and changes in tax law. This includes:

Workshops, webinars, and examinations covering current IRA rules and retirement strategies
Mandatory education requirements and comprehensive background checks
Access to Ed Slott’s technical team when complex IRA questions arise

This ongoing education helps us keep up with changes that may affect your retirement accounts and apply that knowledge within your broader financial plan.

Learn more about the benefits of working with a member of Ed Slott’s Elite IRA Advisor Group^SM by watching this video.

Common IRA Planning Questions

Should I roll over an old 401(k) to an IRA?

An IRA is not automatically a better choice than an employer retirement plan. Before deciding, compare your investment options, fees, services, withdrawal rules, account protections, and tax consequences. Your choices may include leaving the account in your former employer’s plan, moving it to a new employer’s plan if permitted, rolling it into an IRA, or taking a distribution, which could result in taxes or penalties.

Should I consider a Roth conversion?

A Roth conversion may be worth considering based on your current and expected future tax rates, retirement timeline, future required minimum distributions, Medicare premium considerations, and goals for your beneficiaries. The previously untaxed portion of the amount converted is generally included in your taxable income for that year, so the timing and size of a conversion matter.

Are IRA withdrawals taxable?

Traditional IRA withdrawals are generally taxable to the extent they consist of deductible contributions and earnings. Qualified Roth IRA withdrawals are generally tax-free. The tax treatment depends on factors such as the type of IRA, your age, prior contributions, and the reason for the withdrawal. Additional federal taxes may apply to certain early withdrawals, and state tax rules may also apply.

When do required minimum distributions begin?

Under current law, required minimum distributions generally begin at age 73 for individuals born between 1951 and 1959 and age 75 for individuals born in 1960 or later. These rules generally apply to Traditional, SEP, and SIMPLE IRAs, while original Roth IRA owners are not required to take lifetime distributions. Different distribution rules apply to inherited IRAs.

What happens to my IRA after I die?

Your IRA generally passes to the beneficiaries named on the account. Distribution options and requirements can differ for spouses, children, trusts, charities, and other beneficiaries. Because the beneficiary designation generally controls who inherits the account, it should be reviewed alongside your estate plan and updated when your circumstances or wishes change.

IRA Planning Articles and Resources

Does Connecticut Tax IRA Distributions?

Connecticut updated its IRA rules, changing how certain IRA distributions are treated for state income tax purposes. Eligibility depends on income levels, account type, and residency status.

Learn more

Should You Do a Roth Conversion Before the End of the Year?

Thinking about a Roth conversion before year-end? Learn why December 31 matters, how 2025 tax brackets may affect your taxes, and when it might make sense to wait.

Learn more

Traditional IRA vs. Roth IRA: What’s the Difference?

Learn how each IRA works, how they’re taxed, and which may fit your retirement goals best. Understand income limits, contribution rules, and early withdrawal considerations for investors.

Learn more

Avoiding Common RMD Mistakes

Learn how to avoid common mistakes with required minimum distributions (RMDs) as we explain the rules, offer practical tips, and show how to simplify RMDs for retirement success.

Learn more

Content posted in Ed Slott’s IRA Corner was developed and produced by Ed Slott & Co. to provide information on a topic that may be of interest. Ed Slott and Ed Slott & Co. are not affiliated Capital Wealth Management, LLC. The opinions expressed and material provided are for general information, and should not be considered a solicitation for the purchase or sale of any security.

Ed Slott and Ed Slott & Co. and the speakers referenced above are not affiliated Capital Wealth Management, LLC or Raymond James. The opinions expressed and material provided are for general information, and should not be considered a solicitation for the purchase or sale of any security. Any opinions are those of the author, and not necessarily those of Raymond James. Expressions of opinion are as of this date and are subject to change without notice.

This information has been obtained from sources considered to be reliable, but we do not guarantee that the foregoing material is accurate or complete, it is not a statement of all available data necessary for making an investment decision and it does not constitute a recommendation. The information does not purport to be a complete description of the securities, markets, or developments referred to in this material. Please note, changes in tax laws may occur at any time and could have a substantial impact upon each person's situation. While we are familiar with the tax provisions of the issues presented herein, as Financial Advisors of RJFS, we are not qualified to render advice on tax or legal matters. You should discuss tax or legal matters with the appropriate professional.

Please note that the legislature may make changes to the 529 to Roth IRA provision and/or the IRS may provide guidance on the provision. As an example, it is not yet clear whether or not beneficiary changes, rollovers, or other account transfers will reset the 15-year time period. Consider waiting to complete the transaction until the IRS has provided clarification. In addition, not every state may consider the 529 to Roth IRA rollover to be qualified for state income tax purposes. Consider consulting with a tax professional prior to completing the conversion. Contributions to a traditional IRA may be tax-deductible depending on the taxpayer’s income, tax-filing status, and other factors. Withdrawal of pre-tax contributions and/or earnings will be subject to ordinary income tax and, if taken prior to age 59 1/2, may be subject to a 10% federal tax penalty. Like Traditional IRAs, contribution limits apply to Roth IRAs. In addition, with a Roth IRA, your allowable contribution may be reduced or eliminated if your annual income exceeds certain limits. Contributions to a Roth IRA are never tax deductible, but if certain conditions are met, distributions will be completely income tax free. Roth IRA owners must be 59½ or older and have held the IRA for five years before tax-free withdrawals are permitted.

529 plans come with fees and expenses, and there is a risk they may lose money or underperform. Most states offer their own 529 programs, which may provide benefits exclusively for their residents. Please consider whether the state plan offers any tax or other benefits. Tax implications can vary significantly from state to state.

Be sure to consider all of your available options and the applicable fees and features of each option before moving your retirement assets.

All hypothetical illustrations are not intended to reflect any actual outcome. Individual circumstances will vary.

RMD's are generally subject to federal income tax and may be subject to state taxes.

Every investor's situation is unique and you should consider your investment goals, risk tolerance and time horizon before making any investment. Investing involve risk and you may incur a profit or loss regardless of strategy selected. Be sure to contact a qualified professional regarding your particular situation before making any investment or withdrawal decision.