Real Estate, Roth Conversions & Annuities - 273

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

🗓️ 12 May 2020

⏱️ 43 minutes

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Summary

A mixed bag of questions on everything from spousal solo 401(k) contributions and inherited IRAs to house-buying strategies, to the fan-favorite, ripping on annuities, with a healthy dose of Roth conversion planning thrown in the middle. Sign up for the LIVE YMYW webinar on May 13, send in money questions, read the episode transcript and access free financial resources: https://bit.ly/YMYW-273

Transcript

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0:00.0	It's Tuesday, and that means the Your Money Your Wealth webinar with Joan Bigel answering your questions live on camera is tomorrow, Wednesday, May 13th at noon Pacific time 3 p.m. Eastern, and you still have time to register to attend for free.
0:14.9	Just go to the podcast show notes by clicking the link in the description of today's episode in your podcast app and sign up.
0:21.7	Today on the Your Money Your Wealth podcast, it's a mixed bag of questions on everything from solo 401k
0:26.7	contributions and inherited IRAs to house buying strategies to the fan favorite ripping on annuities
0:33.0	and there's a healthy dose of Roth conversion planning thrown in the middle, of course.
0:43.0	I'm producer Andy Last and here with 12 I don't knows, four don't do it, three good ideas, and a little TMI are the hosts of your money, your wealth, Joe Anderson CFP, and Big Alclopine
0:49.4	CPA.
0:51.0	We got Dan, he writes in from San Diego on the maximum solo 401 contributions of 63,500,
0:58.1	will that include spouse's contributions in any other IRA such as Sep or Simples. In other words,
1:04.7	should an aggregate check be done? So, all right, well, Solo 401K is basically a 401 plan for self-employed individuals.
1:14.2	Looks like Dan is self-employed. And he probably has his wife on the payroll. So the 63-500,
1:21.0	can you break that down? Sure. Yeah. So, well, first of all, an employee can put in 19,500 into 401k plan. And if you're, if the
1:31.9	employee is 50 and older, there's a $6,500 catch up. So that gets to 26,000. Now, when you're
1:37.6	self-employed, you can put the profits sharing portion in, Joe, which is up to 25% of your, of your
1:43.3	profits without regard to the, to the 401K. So that's how you get to this
1:49.0	63,500 because the maximum for self-employed, now we're talking employee and employer, because
1:56.0	remember you're both when you're self-employed. So it's $57,000 for 2020 and then $6,500 for the catch-up. So
2:03.6	$63.5. So that's where that number comes from in the first place. You have to have a lot of
2:08.6	income, Joe, to be able to put that much in. But assuming that you do, because he referenced
2:13.5	63-5, Dan did, let's say, well, assume he's over 50. So that would mean he could put in
2:19.3	$26,000 of his own and then he'd have to have quite a bit, you know, 25% of the difference
2:25.3	close to $40,000. So it'd have to be a lot of profit to be able to do that. But I will say
	...

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