ICYMI: Where the Ultra-Wealthy Retire, How To Take Tax and Penalty-Free Roth Distributions, Medicare Advantage Plans That Get High Marks from Customers

And, save 50% on an annual subscription to Paramount Plus for a limited time. Created for {EMAIL} | [Web Version]( September 20, 2024 FOLLOW US:  [LinkedIn]( [Facebook]( [Instagram]( [A Step Ahead]( [SIGN UP](format=multipart) ⋅ [WEBSITE]( [] INTRODUCTION [] [Stepping Into Tax and Penalty-Free Roth Distributions]( I’ve been a fan of Roth IRA accounts since their inception. There are very few ways to create a tax-free stream of income in retirement and Roth IRAs are the easiest way for most people to do so. The ability to take tax and penalty-free distributions is conditional. There are two distinct five-year rules for taking these types of distributions and one relates to the dates of your contributions and the other is tied to the date of any Roth conversions. Editor of The Kiplinger Tax Letter Joy Taylor provides a [thorough understanding of when the five-year rule clock starts for tax-free and penalty-free earnings](. Failing to comply with the rules can result in a surprise federal tax bill. I want to learn about your IRA preferences. It will help me bring you content that complements your investment choices and goals. Please cast your vote below and read next Friday’s edition of A Step Ahead to find out which accounts are most popular. Don't forget to scroll down to see the results of last week's poll. Till then, enjoy catching up on some of Kiplinger’s most popular articles this weekend. - Donna LeValley, personal finance writer [] Do you have an IRA? Did tax treatment of current contributions and future distributions make a difference? [Vote]( [I have a Roth IRA because I want a tax-free income in retirement.]( [Vote]( [I have a Traditional IRA because I want a tax break now.]( [Vote]( [I have both. I am taking a smaller deduction now to get a tax break later.]( [Vote]( [I have neither.]( [Key Actions to Take to Start Estate Planning]( Start planning your future with this estate planning checklist. From naming beneficiaries to drafting a will, we cover key actions to take that reflect your goals and values. [READ MORE]( ADVERTISEMENT [] MEDICARE ADVANTAGE PLANS [] [Medicare Advantage Plans Get High Marks from Customers]( [Medicare Advantage Plans Get High Marks from Customers]( (Getty Images) Reading and using reviews to make purchasing decisions is part and parcel of internet shopping. It’s far more complicated when you are shopping for health insurance. Medicare enrollees can choose to remain in Original Medicare or move to a Medicare Advantage plan. A recent survey showed that Medicare Advantage participants are happier with their insurance than users of commercial insurance and revealed what these users like about the policies they hold. Read on to [learn which Medicare Advantage plans are rated highest and which plan finished dead last in every state surveyed](. [] LUXURY RETIREMENTS [] [Here’s Where the Ultra-Wealthy Retire]( [Here s Where the Ultra-Wealthy Retire]( (Getty Images) Some websites and magazines track the homes and vacations of the famous and fabulously wealthy; I think I’ve seen more pictures of Jeff Bezos’ summer vacations than my own. But what about retirement? Where do the ultra-wealthy retire? Kiplinger contributor Eileen Daspin had the enviable task of reviewing [luxury retirement communities for the ultra-wealthy and the upscale amenities these retirees have at their disposal](. Take a peek inside these posh communities offering independent living and a range of living arrangements that feel more like a 5-star resort than a standard care facility. [This Billion Dollar Startup Wants to Help You Retire]( This Princeton grad's startup raised $161 million to help people plan for retirement. If you're one of the whopping 110 million Americans over the age of 50, or wisely planning ahead, SmartAsset's no-cost tool can help match you with up to 3 vetted financial advisors. [Learn more]( ADVERTISEMENT [] COVID PRECAUTIONS [] [How to Get Free COVID Tests For Fall]( [How to Get Free COVID Tests For Fall]( (Getty Images) Similar to the flu, COVID infections go up when the colder weather comes and people spend more time indoors. The specter of COVID is never going away, and having some tests on hand can save you a trip to the doctor if you are negative or give you the necessary sense of urgency to get treated and avoid medically fragile people if you are positive. A COVID test costs as little as $10, so this offer amounts to savings of about $40. Kiplinger senior digital editor Alexandra Svokos tells you [how to get your free COVID tests this fall](. [Financial experts + automated tech]( While you focus on what's important to you, Betterment is working behind the scenes to optimize your investments and make your money hustle. [Learn More]( ADVERTISEMENT [] OTHER KIPLINGER ARTICLES WE THINK YOU'LL ENJOY [] [Get 50% off Paramount Plus for a limited time]( From now until September 23, new and former subscribers can get an annual Paramount Plus Essential membership 50% off. However, you will have to pay for the annual cost upfront. [Should you refinance your mortgage now that the Fed just cut rates?]( The Fed just cut rates, so mortgage refinance rates will be cheaper. Should you act now, or wait? [5 December 31 tax deadlines for retirees]( The end of the year will be here before you know it, so it might be a good idea to start thinking soon about what you need to do for taxes before it arrives. [From building wealth for a secure retirement or investing wisely in any market to money-saving tax planning and much more — Sign up to explore more free e-newsletters here.]( [] Results of last week's poll: Should we change the way we determine the Social Security cost-of-living adjustment? Yes, because the 2025 increase will be too low to meet expenses 39.25% Yes, because your financial needs are different in retirement, whether it results in a higher COLA or not 42.03% No, the trust fund is already projected to run out in 2035 and pay reduced benefits (83%). A higher COLA will make it worse 12.58% No, the current formula is fair to current and future retirees because that is what past beneficiaries have received 6.14% ABOUT KIPLINGER When we write about money, we get it right. So the decisions you make with your dollars are also right. 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