What’s the Break-Even on a Retirement Roth IRA Conversion? - 249

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

🗓️ 26 November 2019

⏱️ 49 minutes

🔗️ Recording | iTunes | RSS

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Summary

How do you figure out the break-even point on a Roth IRA conversion? Joe and Big Al discuss whether to convert, how much to convert, and when. Plus, the step-up in basis on a primary residence, self-employed small business retirement plan options, the difference between a financial advisor and financial planner, and defining a registered investment advisor and broker-dealer. Ask money questions, read the transcript & access free financial resources: http://bit.ly/YMYW-249

Transcript

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0:00.0	They are some of the most common questions we get. How do you decide whether to do a Roth IRA conversion, how much to convert, and when?
0:08.2	Today on Your Money, Your Wealth, Joe and Big Al hammer out the answers.
0:12.2	Plus, how do you get a step-up in basis on your primary residence?
0:15.9	Retirement plan options for self-employed small business entrepreneurs.
0:20.0	And the fellas explained financial advisors, financial planners, RIAs, and broker-dealers
0:25.3	in their own unique way for the infamous Marcus of Tennessee slash Alabama.
0:30.4	I'm producer Andy Last, and contrary to what Joe thinks, I do not know where you live.
0:34.7	Here they are now, Joe Anderson, CFP and Big Alclopine CPA.
0:39.5	We got Andrew from San Diego.
0:42.4	He writes in, I have maxed out on my 2019 401K contributions at work, $25,000.
0:51.1	Can I still making $7,000, $2019 contribution to a Roth IRA or 401K?
1:01.2	Well, if you've already maxed out to 401K, Andrew, then the answer to putting more dollars in a 401K is no, unless they provide an after-tax component within the 401K.
1:12.6	Yeah, but the quick answer is a regular 401K and Roth 401K get added together to the
1:18.8	maximum of $25,000 when you're 50 and older.
1:21.6	So you can't double up on that, but you could still do a Roth contribution if you're
1:25.9	single and your income is below 122,000
1:28.6	or married at 193,000.
1:31.5	So, and there is a phase-out period where you can do a little bit, but not fully.
1:35.3	And that fully phases out, single at 137, married 203,000, to where you can't make any
1:41.1	more contribution.
1:42.2	So look, this is a question that we get a lot in regards to, I can't put money into an IRA because I've already maxed out my 401K.
1:52.8	Yeah, that's false.
	...

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