Mega Backdoor Roth Conversion 5-Year Rule and Bond Investing - 451

Your Money, Your Wealth

Realestate, Income, Investing, Personalfinance, 401k, Rothconversion, Retirement, Education, Taxes, Socialsecurity, Personalfinances, Finance, Retirementplanning, Investments, Stocks, Business, Roth, Fiduciary, Ira

2.3 • 681 Ratings

🗓️ 17 October 2023

⏱️ 43 minutes

🔗️ Recording | iTunes | RSS

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Summary

Should Jim in New Jersey do the YMYW-infamous Megatron (the Mega Backdoor Roth IRA) or use his Roth 401(k) - and how can he keep bonds out of his Roth accounts? Joe and Big Al discuss the January first start date when it comes to the 5-year rule on Roth conversions for Nancy in Wisconsin, and they spitball on those Roth clocks for withdrawals and tax-efficient investments for Johnny Mercer in Savannah, GA, who also wants to know the pros and cons of bonds vs. bond funds vs. CDs. Plus, should Brad in St. Louis incorporate bonds into his investment portfolio, given the fact that he will have pensions and Social Security providing 5 streams of fixed income in retirement?

Timestamps:

00:58 - The Megatron: Mega Backdoor Roth IRA vs. Roth 401(k) (Jim, NJ)
14:42 - 5-Year Rule on Roth Conversions: How Does January First Default Start Date Apply? (Nancy, WI)
19:43 - 5-Year Rule on Roth Conversions vs. Tax-Efficient Investments, Bond Funds Vs. Bonds Vs. CDs (Johnny Mercer, Savannah, GA)
32:42 - What’s the Best Strategy for Incorporating Bonds into Our Retirement Portfolio? (Brad, St. Louis)
40:09 - The Derails

Access this week's free financial resources in the podcast show notes at https://bit.ly/ymyw-451

Complete Roth Papers Package - includes the Roth Basics Guide, the 5-Year Rules for Roth IRA Withdrawals, and the Ultimate Guide to Roth IRAs
10 Steps to Improve Investing Success
Investing Basics Guide
Episode Transcript
Ask Joe & Big Al On Air for your Retirement Spitball Analysis

Transcript

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0:00.0	Join Big Al Spitball on the Mega Backdoor Roth, the five-year rules for Roth conversions, and investing in bonds.
0:06.0	Today on Your Money, Your Wealth podcast number 451.
0:09.6	Should Jim in New Jersey do the YMIW infamous Megatron, the Mega Backdoor Roth IRA, or use his Roth 401K?
0:17.1	And how can he keep bonds out of his Roth accounts?
0:20.4	The fellows discussed the January 1st start date when it comes to the five-year rule on
0:24.5	Roth conversions for Nancy in Wisconsin, and they spitball on those Roth clocks and tax-efficient
0:30.2	investments for Johnny Mercer in Savannah, Georgia, who also wants to know the pros and cons
0:34.9	of bonds versus bond funds versus CDs. And should Brad and St. Louis
0:40.0	incorporate bonds into his investment portfolio given the fact that he will have pensions and Social
0:45.4	Security providing five streams of fixed income in retirement? I'm producer Andy Last and here are the hosts
0:51.7	of your money, your wealth, Joe Anderson, CFP, and Big Al Clopine CPA.
0:57.5	Got Jim from New Jersey. Hey, Jill, Big Al, Andy, long-time listener, first time a spitball requester.
1:04.2	Now to the important stuff, I drive a 2017 Jeep Grand Cherokee. Enjoy a little bourbon old-fashioned.
1:10.0	There you go.
1:11.0	Your old-fashioned.
1:11.7	Everybody loves these old passions.
1:12.9	Apparently, so.
1:13.7	No pets.
1:14.8	Too much of a clean freak.
1:16.5	Apologies in advance.
1:17.6	I actually don't need an elaborate football here.
1:20.7	But have a mega garage back to our technical question that I have never heard addressed or found
	...

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