163: Taxes, Backdoor Roths, Options, and How to Max Out Your Childrens’ Roths with Steven Hamilton

BiggerPockets Money Podcast

BiggerPockets

Investing, Education, Business

4.6 • 2.9K Ratings

🗓️ 18 January 2021

⏱️ 90 minutes

🔗️ Recording | iTunes | RSS

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Summary

Have tax questions for your upcoming 2020 taxes? Stick around then! We have a mind-blowing episode with enrolled agent Steven Hamilton from Hamilton Tax and Accounting. Mindy and Scott throw a lot of high-level, hard-hitting questions at Steven, so seriously, bring a pen and paper to this episode because you’re going to get some amazing tax strategies for 2020!

How do you lower your income on your taxes if you have a W2? How do you add to your roth if you’re over the contribution income limit, and what’s the best way to get your kids to max out their retirement accounts (even if they’re only teenagers). Steven answers all these questions, plus a lot more!

Whether you’re self employed or a W2 employee, you have options on contributing to retirement, AND options on leveraging those retirement accounts to fund investments. As always, it’s best to talk to your CPA, enrolled agent, or tax preparer on the best strategy that works for you. As Steven puts it, you need to have a plan for where your wealth is going and how you’re going to distribute it.

Since 2020 was such a crazy year, many real estate investors are planning to double down on investments, up their contributions, or leave their W2 jobs. This all needs to be done with a plan and a strategy so you can maximize your investments and distributions. Steven helps spell out the best ways to do these (and more) through a number of different (and interesting) strategies.

In This Episode We Cover

The differences between joint and separate filings as a married couple
How AGI (adjusted gross income) effects your taxes and retirement contributions
How to max out your 401(k) to $57,000
UBIT (unrelated business income tax) and UDFI (unrelated debt financed income)
How CPAs, Enrolled Agents, and Attorneys differ when preparing your taxes
How to perform an IRA rollover into a different account
How to put even more money into your Roth
Setting up retirement accounts for your children
Limiting your stock gains so you pay less tax
And So Much More!

Links from the Show

Check the full show notes here: https://www.biggerpockets.com/moneyshow163

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Transcript

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0:00.0	Welcome to the Bigger Pockets Money Pipe Cast,
0:02.0	show number 163 where we interview Stephen Hamilton
0:05.8	from Hamilton Tax and talk about the specifics of retirement accounts.
0:10.8	It's a lot of fun and there's no specific right answer when we're planning.
0:15.0	It's all about what's going to be best for your situation.
0:18.1	Everybody comes and they say, what do I do? What do I do? What are your goals?
0:22.0	Where do you want to be? How do you foresee the future goal? You can win a lottery
0:25.9	for Changer and Piper plan in an instant. But we could inherit funds that you never expected to
0:31.9	appear in a container in that situation altogether.
0:36.1	Hello, hello, hello. My name is Nindi Jensen and with me as always is my paying his fair share
0:41.4	of taxes, co-host Scott Trunch. I'm going to just defer to comment on that one.
0:48.4	That was good. Scott and I are here to make financial independence less scary,
0:53.5	less just for somebody else to introduce you to every money story because we truly believe
0:58.8	that financial freedom is attainable for everyone no matter where or when you're starting.
1:04.0	That's right, whether you want to retire early and travel the world, go on to make big-time
1:07.2	investments in assets like real estate, start your own business, or simply learn the ins and outs
1:11.6	of free and post-tax retirement account contributions. We'll help you reach your financial goals
1:17.2	and get money out of the way so you can launch yourself towards your dreams.
1:20.0	Today is a super boring episode. Unless you're a honey. Unless you like saving money.
1:28.9	Unless you like money, unless you like making lots of money, unless you like your retirement
1:32.9	accounts to be as fat as possible. And then it's going to be a super fun episode where you learn
1:38.0	all the things about the Roth IRA, the backdoor Roth, the mega backdoor Roth, 401K's, how they
	...

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