Appreciate you covering these questions! I was about to contribute 7k for 2025, panicked when I saw $16 sitting in the traditional IRA account. Would you be able to cover how to fill out 8606 in this case? Thanks so much! Subscribed :)

Certainly not everyone has $30,000 in cash laying around to give to Uncle Sam. Thanks for being the lone voice out here tamping down all the hoopla about Roth conversions. They are not a slam dunk great thing for everyone.

Interesting software: Holistiplan Scenario Analysis. Pricey at $1500.

What if I did a backdoor conversion a couple of years ago and didn't know about form 8606 so didn't tell my CPA about this, how can I correct this? Thank you so much for help!

Deduction for leasing car?

Side work and work ur ass up, and avoid burnout, how the can i do this????

Pls help what if i make a big mistake of contributing straight to my roth IRA by mistake (I'm not qualified & should have done backdoor). Can I correct my mistake and still can do the backdoor roth IRA. Thanks in advance.

Is it fine to contribute let’s say $500 per month into traditional Ira and invest inside traditional Ira then backdoor at end of year or would you recommend trying to save up $7,000 cash to contribute and immediately convert to Roth IRA at beginning of each year?

You are looking at just the base pay, which is combined with a market adjusted pay to reach a total salary. No full time physician anywhere in the US makes 118k.

I put in 6000 in a traditional IRA and invested it and gained 500 dollars. Since it is below the 7000 limit, if I transfer it to a Roth IRA is the entire 6500 a tax-neutral event since it it below the 7000 backdoor limit or is there tax implications for the 500 dollars I gained while investing ?

Would you recommend 457b Roth?

You did not discuss the fact that a beneficiary may already be contributing to her job's 401k Roth plan. Does this affect the 529 transfer to her regular Roth IRA?

Is the deadline for the traditional to the backdoor Roth IRA, April 15th of the following year? Additionally, when I fund my traditional IRA, do I have to invest my contribution and then convert? Or can I leave it as cash and convert once my funds settle?

I have an old Roth IRA from when I was below the earnings limit. Can I convert to that existing Roth IRA or would I need to open a new one just for the conversion?

If doing the back door Roth IRA, do I need to completely empty My standard IRA or can I still keep in the traditional IRA? I'm 65 and still working

Additionally it would be more informative to show a walkthrough on how to complete tax reporting on a common platform ie turbotax. I think this is the effort roadblock for most.

From my understanding the 457b (government) is the governments' version of a 401k, this is why they do not match. I'm employed with local government, non-sworn peace officer in Southern California. I'm 37 y.o. and have been contributing to my Roth 457b (DCP), starting from $0, since Jan 2021. I have about 51k so far and been contributing 10% since up until last month. When I got COLA at 3.4%, I increased my contribution rate 3%, so I'm at 13%. Since I have another 19 years, I've been doing aggressive, which is all US large cap, which is nothing but the S&P 500. Additionally, I have a trading account via CS, and have been contributing $500/month into that for the past year. SCHD, SCHG,VOO (70%) nvidia, archer, soundhound, RGTI (25%) XRP (5%), has been the other "water well" or "basket". So pension after 30 years @ 57 y.o., ROTH 457b, and CS trading account. I'm single, with one 14 y.o. teen. I don't pay CS, bc the mother and I have a verbal agreement, and I help her with our child. Pretty much anything our kid needs, I got it. Not too mention I do contribute about $2000/annually to my kids custodial trading account, and she has a nice 18k in it, for the past 4 years, since I've been contributing. I think I've done well given my situation. God is good and life is stress free and I'm at peace so far. God willing, I pray i make it to my golden years, like most of my "OGs" sorta speak! I respect and aspire to be like all my seniors out their that have made it to a happy and healthy retirement.

Qualifying "employment" not Qualifying payments. If you already had 10 years of payments there would be nothing for you to buyback. 😊

If I open a 529 for myself at 45 with the "intention" of using it for education and holding it until I'm 60, will I be able to roll it over to a Roth IRA over the next few years if I have only unearned income then?

This plan is a hidden gem for cops and firefighters. We tend to retire earlier than other professions, and the 457b is my main tool to do this. Not to get political, but after the events of 2020, a lot of people are looking for a way out. Set yourself up early so you have options at an earlier age.

Great video, insightful. I work in healthcare, I have a pension that will pay 70% of my final salary at retirement, and on top of that I have a ROTH 403B plan and a ROTH 457 Plan, and I contribute to both. Is it true I am allowed to max out out both these Roth 403B and 457plans, meaning I contribute $22500 to each plan. Plus am I right to think that my withdrawals will be tax free since I contribute after tax money into both? :) cheers

Continued, and the RMD funds contributed into a DAF Tax deductible?

Can you use RMD funds to put into a DAF?

Videos are spot on. One point I'll make about the EDRP is it is something that can roll on and off an offered position daily. You actually should take a screen shot of the job posting. The bureaucracy that you mentioned is 100% accurate especially regarding EDRP. I am the one physician you have now heard of that did not get this benefit. It was offered on my position 8 months before i accepted an offer.

do you have to contribute to the traditional IRA each year and then immediately transfer/covert to Roth or once you have done the initial transfer/conversion do you only contribute to Roth the following years?

so i only have a 401k through my employer, i dont need to worry about the pro=rata rule, correct?

Super helpful video! Just watched and realized I made a mistake. I just did a first time conversion and I only did it for $7K and left the $2 accumulated interest in the traditional. I thought I can only convert the contribution limit but from listening to you it sounds like I should have converted all of it. How do I fix it? Can I still convert what's left in there (now ~$4) and pay taxes on it later?

I became eligible for a 457B at a non-for-profit 15 years ago and it changed my life. It accelerated my retirement timeline by an easy decade and how it pays out blew my mind. Because it is restricted to high-value people, most people don't know it exists until you are invited to contribute and I am stunned how many people don't do so. Reduces your taxes, it pays steady gains over time (around 8-8.5%) and the payout is staggering. Our plan pays out on lump sum/5/10/15 year options and it does on on a remaining term in months divided into balance remaining after monthly interest is applied! Do the math on that on $500K plus and it means I don't touch my 401K until my 70s with early retirement in my 50s and my 457B will actually go up in payout over time. Life changing stuff. I guide all of my colleagues who are eligible to contribute to it first. It's that amazing. It moves my retirement into "First World Problem" territory where I am bitching about managing taxes in retirement. I'll take it. I value nothing higher than this plan. I favor it over my 401K given a choice.

I have a tax deferred 457b with a 2% match from my employer. They also give us a pension that will pay 60% or higher of my final salary for life. Some of the younger guys don’t contribute to the 457 even just for the match just because they get the pension.

👍

another great job

You asked what topics we would like to hear about it? Buffered ETF's seem like a great idea for those approaching or in retirement.............no all of our money but a portion of it. What are your thoughts? great show btw.

Is there any update on if the 15yr clock resets when changing beneficiary.

Do you do 1 on 1 hourly sessions with clients to go over questions?

So you never pay taxes on the money? Even when taxes are filed, will you have to pay with tax bill?

can we deduct the kids health insurance premium?

do i need to do taxes in C schedule to be able to do Solo 401K ? Or do i need to have a LLC to be be able to do Solo 401K

The issue I am having is having is my 529 plan provider will only complete transfers to the Roth.....although the limit is $7000 per year. Where would the remaining funds go I was to ask for a full conversion to Roth and Schwab only accepts the $7000 conversion for year 2024? Neither the plan provider nor Schwab could answer that question for me. Thoughts?

Due to new 529 rules, you can still get a jump start on your childs roth. If criteria are met, you can do a roth conversion later in life. Yes its not the same as funding a roth directly pre 18th bday... but it can provide a big head start once they hit 18/ early 20s.

Great job!

Can physicians get the loan based on Signed contract that's effective 10 months in future

If I transfer a 529 plan from Vanguard to Fidelity, does it reset the 15 year rule or does it go off the origination date at Vanguard?

You briefly talked about cash jobs such as babysitting and mowing lawns and keeping documentation, Are they able to use this income for funding their ROTH?

QUESTION: Thank you for taking the time to do this video. I have a pre tax 401K through my work. Can I then open a Fidelity traditional IRA and a ROTH IRA then contribute 6,500 after tax moeny (or whatever the max for Roth) in the traditional IRA and move all of the 6,500 to the Roth IRA??? Would this be considered as the backdoor Roth??? And I will NOT be subject to the pro-rate rule??? I am not touching my 401K it just stays there. Then in my tax return, I will fill out the form 8606. Thank you for your time in advance.

Ur rock. Speak about side hustle

Thank you for this video

Hi, I understand that you pay employment tax if you have a S-Corp. Do you also pay federal income tax as well? if so, what portion of the income do you pay federal income tax on?

First, thanks a bunch for this video. The nuances of this have been tricky to follow but this is the best video I've seen to clear up some of these issues/and avoid them. However, I do have a question which you touched on in the 8606 section of the video. Like you mentioned, before I performed my 1st Roth Conversion about a month ago, I made sure I had $0 in my Traditional IRA (I'd rolled it into my 401k a couple of years ago), so I'm good there as I started with $0 in my traditional IRA before performing the Traditional --> Roth conversion. However, I ran into the "pennies" issue and I have a clarifying question to ask you. On 8/20, I contributed $7K to my traditional IRA to max my 2024 IRA contribution. The contribution cleared on 8/21, at which time I converted the entire balance of $7K from my Traditional IRA to my Roth IRA. However, after looking at my Fidelity account this morning, I noticed I have $0.95 of interest earned in the money market fund the $7K was in for 1 day (8/20 to 8/21). So, now my Traditional IRA has a balance of $0.95 and will obviously continue to pay interest as $0.95 sits in the account. So here's my question - instead of converting the $0.95 from the TIRA to Roth, could I just transfer the $0.95 to my company 401k (into the traditional - pre tax - portion of my 401k account) to keep the 8606/1099-R clean and not create additional taxable income? I'm less concerned about paying the marginal tax rate on $0.95 and more so just trying to keep the tax forms clean. Not to mention, the in-plan conversion from my Traditional IRA to my Roth IRA is super simple, so an extra form really is no sweat to keep it simple. I assume the $0.95 would be the portion for which I owe marginal taxes.

very informative video. I recently this past year started contributing to my 457b and the more im learning about it the more thankful I am to have it over some other options ive had in the past

Great video. Thank you