UGMA, 529, HSA, RMD, and Inherited IRA Tax Bombs Defused - 557
Your Money, Your Wealth
Your Money, Your Wealth
2.3 • 681 Ratings
🗓️ 25 November 2025
⏱️ 41 minutes
🧾️ Download transcript
Summary
Joe Anderson, CFP® and Big Al Clopine, CPA are defusing some confusing tax time bombs today on Your Money, Your Wealth® podcast number 557. George in Torrance wants to know the smartest way to deal with the giant UGMA account set up by his kids' grandparents. Suzanne in Detroit has a twist on the new 529 plan to Roth rollover rule. Homer and Marge need a spitball on whether they can build huge 529 plans for college savings and still retire early. Plus, Bill in Chicago just inherited a $950K IRA and needs a withdrawal plan before he triggers a tax explosion. Aaron in Cincinnati wonders whether maxing out his health savings account every year as part of his overall pre-tax contributions is a good idea. Carl in Western Maryland has questions about the required minimum distribution age and HSA rules, and wonders whether those who make the tax code are on drugs. And finally, Marc wants to know how to avoid the tax kaboom from $the 4M sitting in his traditional IRAs at age 73.
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https://bit.ly/ymyw-557 (full show notes & episode transcript)
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Chapters:
00:00 - Intro: This week on the YMYW Podcast
01:07 - Best Tax Moves When Your Kid Has a Huge UGMA Account (George, Torrance, CA)
06:23 - 529 to Roth Rollover or Save for Grad School: What's the Smarter Play? (Suzanne, Detroit)
14:47 - Can $650K High Earners Afford to Build Huge 529 Plans and Still Retire Early? (Homer and Marge, No CA)
24:01 - Inherited IRA Withdrawal Plan: How Much Should You Take Out Annually? (Bill, Chicago)
31:23 - Should You Really Max Out Your HSA Every Year? (Aaron, Cincinnati, OH)
33:07 - Do You Take RMDs at 73 or 75? Was the Government on Drugs When They Came Up with HSA Rules? (Carl, Western MD)
38:07 - 73 With $4 Million in IRAs: What's the Best Tax Strategy? (Marc, 92024 - Encinitas, CA)
39:31 - Outro: Next Week on the YMYW Podcast
Transcript
Click on a timestamp to play from that location
| 0:00.0 | Joe and Big Al are diffusing some confusing tax time bombs today on Your Money, Your Wealth |
| 0:04.9 | Podcast number 557. |
| 0:07.1 | George and Torrance wants to know the smartest way to deal with the giant UGMA account |
| 0:11.5 | set up by his kids' grandparents. |
| 0:13.7 | Suzanne in Detroit has a twist on the new 529 plan to Roth Rollover Rule. |
| 0:18.5 | Homer and Marge need a spitball on whether they can build huge 529 plans for college savings |
| 0:24.2 | and still retire early. |
| 0:25.7 | Plus, Bill in Chicago just inherited a 950k IRA and needs a withdrawal plan before he |
| 0:31.5 | triggers a tax explosion. |
| 0:34.2 | Erin in Cincinnati wonders whether maxing out his health savings account every year as part of his overall pre-tax contributions is a good idea. |
| 0:41.6 | Carl in Western Maryland has questions about the required minimum distribution age and HSA rules and wonders whether those that make the tax code are on drugs. |
| 0:50.8 | And finally, Mark wants to know how to avoid the tax kaboom from the $4 million sitting in his traditional IRAs at age 73. |
| 0:59.4 | I'm executive producer Andy Last and here are the hosts of your money, your wealth, Joe Anderson, CFP, and Big Alclopine CPA. |
| 1:07.0 | It's been a hot minute since we've all gotten together. |
| 1:10.5 | Yes, I think you're right. That's an East Coast term, I think. Hot Minute? Really? I'd never heard that until someone from the East Coast told me that. I was just in the East Coast. Oh, there you go. Okay. All right. Let's get right to it. We got George from Terrence, California. He goes, hey, my kid's grandparents. |
| 1:30.6 | Okay. Well, why doesn't he just say my parents? |
| 1:33.8 | Might be his wife's parents. Well, yeah. Well, he says that, my kids' grandparents. |
| 1:40.7 | Then you have to really do some math here. Let's see. What does that mean? |
| 1:45.0 | Set up an UGMA account for three kids for the purpose of education and the amounts currently |
| 1:50.6 | around $275,000 each. Great problem they have. Wow. The plan is to use it for whatever purpose |
| 1:58.2 | they need to help them after high school, such as college, education, |
| 2:01.7 | investments, or real estate. My question is, how do I minimize the tax implication as it comes |
... |
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