#10 - Mega Backdoor Roth IRA: What is a mega backdoor Roth contribution? How is it different from a standard backdoor Roth contribution? Is it Ethical and Legal? Why might someone want to do one?
03/05/24 • 15 min
Unlock the full potential of your retirement savings with a deep dive into the mega backdoor Roth IRA, a strategy that's as mighty as it is mysterious. Together with Ryan Nelson, we explore the nuances of maximizing your 401(k) through after-tax contributions and conversions, potentially catapulting your nest egg to new heights. We demystify the contribution limits and tax implications, using practical examples to illustrate how you can take advantage of this underutilized approach—if your employer's plan permits. Prepare to arm yourself with knowledge that could redefine your financial trajectory, paving the way to a more secure retirement.
But it's not all numbers and IRS guidelines; we're slicing into the Northern Nevada culinary scene with the same zest we bring to financial planning. Ryan and I swap stories of our favorite pizza joints, from the no-frills delights of Pizza Baron to the unexpected charm of Pietro's Famiglia, where the melody of live music pairs perfectly with a mouthwatering pie. It's a reminder that variety is the spice of life—and personal finance. So, tune in, take notes, and perhaps discover your next go-to spot for pizza as we dish out hearty helpings of fiscal wisdom and local flavor.
Find "Your Fiscal Physical" the book on Amazon at: rb.gy/3shpfk
If you have suggestions or feedback, please email us at: [email protected]
And, as always, STAY THE COURSE!
Unlock the full potential of your retirement savings with a deep dive into the mega backdoor Roth IRA, a strategy that's as mighty as it is mysterious. Together with Ryan Nelson, we explore the nuances of maximizing your 401(k) through after-tax contributions and conversions, potentially catapulting your nest egg to new heights. We demystify the contribution limits and tax implications, using practical examples to illustrate how you can take advantage of this underutilized approach—if your employer's plan permits. Prepare to arm yourself with knowledge that could redefine your financial trajectory, paving the way to a more secure retirement.
But it's not all numbers and IRS guidelines; we're slicing into the Northern Nevada culinary scene with the same zest we bring to financial planning. Ryan and I swap stories of our favorite pizza joints, from the no-frills delights of Pizza Baron to the unexpected charm of Pietro's Famiglia, where the melody of live music pairs perfectly with a mouthwatering pie. It's a reminder that variety is the spice of life—and personal finance. So, tune in, take notes, and perhaps discover your next go-to spot for pizza as we dish out hearty helpings of fiscal wisdom and local flavor.
Find "Your Fiscal Physical" the book on Amazon at: rb.gy/3shpfk
If you have suggestions or feedback, please email us at: [email protected]
And, as always, STAY THE COURSE!
Previous Episode
#9 - Backdoor Roth IRA: What is a backdoor Roth contribution? Is it Ethical and Legal? What are ther implications and why might someone want to do one?
Unlock the full potential of your financial future as wealth management expert Ryan Nelson guides us through the intricacies of Roth IRAs. In a conversation brimming with strategic advice, we examine how to maximize your retirement contributions by hitting the 2024 cap of $7,000 and delve into the critical impact that missing a single year's investment can have on your long-term savings. Our dialogue with Ryan, a sage in the realm of wealth management and an accomplished author, brings to light the necessity of consistent contributions and strategic planning based on individual income levels, especially with regard to the Roth IRA phase-out limit.
The episode further illuminates the backdoor Roth IRA—a beacon for high earners navigating the often-murky waters of IRA contributions. We discuss the nuances of this IRS-approved strategy that allows individuals to contribute to a traditional IRA without immediate tax breaks and then convert to a Roth IRA for its coveted tax-free benefits. I dissect the process, legality, and common pitfalls, emphasizing the importance of staying informed and seeking professional financial guidance. This is more than just an informative session; it's a roadmap to securing your financial wellbeing throughout retirement.
Find "Your Fiscal Physical" the book on Amazon at: rb.gy/3shpfk
If you have suggestions or feedback, please email us at: [email protected]
And, as always, STAY THE COURSE!
Next Episode
#11 - Pro-Rata Rule: What is the Pro-Rata Rule? How to make backdoor Roth contributions when you already have Traditional IRA funds. | Listener Question
Are you navigating the murky waters of Roth IRA contributions with an income that just won't play nice with IRS limits? Have no fear; Ryan Nelson from Alchemy Wealth Management joins Host Aaron Hoisington, to cast a lifeline of clarity. In our enlightening conversation, we dive into the 2024 income limits for those who are single and those who have tied the knot, offering a beacon of guidance for phased eligibility and contributions. Plus, we open the lid on the backdoor Roth IRA, a savvy option for high earners to bypass these income restraints and continue contributing to their financial future.
When listener Adam shared his dilemma of hitting the income ceiling for Roth contributions, it set the stage for a masterclass in IRA strategies, tailored for the financially astute. You'll witness Adam's journey as he weighs the decision to pause Roth contributions and explores a Roth conversion to facilitate future contributions, all while keeping an eye on the tax implications. This episode is more than just informative—it's a practical guide filled with relatable analogies and insightful discussions designed to help you invest with confidence. Bear in mind, though, while we're here to educate and hopefully entertain, we always recommend consulting with a professional to navigate your unique financial landscape.
Find "Your Fiscal Physical" the book on Amazon at: rb.gy/3shpfk
If you have suggestions or feedback, please email us at: [email protected]
And, as always, STAY THE COURSE!
The Fiscal Physical Podcast - #10 - Mega Backdoor Roth IRA: What is a mega backdoor Roth contribution? How is it different from a standard backdoor Roth contribution? Is it Ethical and Legal? Why might someone want to do one?
Transcript
Welcome to the fiscal physical podcast . Join us each week as we sit down with the founder of Alchemy Wealth Management and author of your fiscal physical , Ryan Nelson . Tune in to gain valuable insights and practical tips as we simplify complex financial concepts into digestible lessons . From budgeting to retirement planning , this podcast is your go to resource for mastering financial l
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