5 IRA tips and tricks for advisors to note

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Many investors are concerned about the impact of the current economic climate on their retirement savings. While some may stick with traditional IRA and 401(k) investments, a push towards Roth IRAs may be a better option for others.

Read our roundup for the latest insights, tips and suggestions on how savers can get the most out of their retirement investments.

Millennials should consider Roth IRAs over 529 plans for college

Planning for the future has never been easy, but for millennials with children, the challenge of balancing saving for retirement while putting aside funds for school is getting even harder, as they watch the cost of a college education spiraling upwards.

What should millennial parents do? The usual answer is to start a 529 plan, where contributions grow tax-deferred and withdrawals are tax-free when used for educational expenses. However, there's an alternative.

"The most common answer [to education funding] is by using a 529 college savings plan," said Bloomberg's Erin Lowry. "But for some families, I'd argue that the Roth IRA — yes, the retirement account — offers a more flexible way to build up your kid's higher education fund."

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Millennials should consider Roth IRAs over 529 plans for college

Yoga pose or killer tax strategy? The discreet charms of a reverse rollover

The practice of rolling over retirement funds from a company-sponsored 401(k) plan into an IRA is very familiar. Less well known is the concept of doing this in reverse.

However, new, more stringent regulations on inherited retirement plans are helping to give this relatively obscure retirement and estate planning strategy new life.

In a reverse rollover, an investor moves their money from an IRA into a company-sponsored 401(k). While the rules governing reverse rollovers are complex, and some companies may not accept them, this tax strategy has the potential to increase an investor's savings over time.

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Yoga pose or killer tax strategy? The discreet charms of a reverse rollover

Advisors should talk to serious couples about spousal IRAs

Staying on track for a financially secure retirement can be a challenge, so it makes sense to take advantage of every opportunity. For married couples, a spousal IRA is an option.

To be eligible, a married couple must file taxes jointly. More significantly, a spousal IRA can only be opened if one spouse chooses to stop working and makes virtually no taxable income.

For married couples who qualify, there are key tax advantages to spousal IRAs that can help protect the non-earning spouse and provide an additional way to prepare for their retirement.

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Advisors should talk to serious couples about spousal IRAs

The rules of Roth conversions

While Roth IRAs are attractive retirement savings strategies due to their tax-free withdrawals, there are restrictions on the annual maximum amount an individual can contribute to a Roth account.

However, there are other ways for investors to grow their Roth balances, such as transferring money from a pre-tax retirement account (a traditional IRA or 401(k) plan) into their account via a Roth conversion.

Roth conversions have distinct advantages but may not be the best choice for everyone, so it's important to know the rules of engagement and different options to get the most out of the strategy.

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The rules of Roth conversions

The pros and cons of pretax vs. after-tax Roth contributions

In the current economic climate, investors are growing increasingly concerned about their prospects for retirement and looking for reassurance that they are making the best choices.

As a retirement savings vehicle, Roth IRAs have become extremely popular, but which will provide the best return — pretax or after-tax contributions?

In Ask an Advisor, Ted Benna, "Father of the 401(k)," provides his perspectives and discusses the pros and cons of the two strategies.

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The pros and cons of pretax vs. after-tax Roth contributions