What’s the Break-Even Point on Roth Conversions? - 477

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

🗓️ 16 April 2024

⏱️ 47 minutes

🔗️ Recording | iTunes | RSS

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Summary

Are there ever times when going all Roth isn’t the best strategy? How do you determine the break-even point on doing Roth conversions? That’s today on Your Money, Your Wealth® podcast number 477, as Joe Anderson, CFP® and Big Al Clopine, CPA spitball on marginal vs. effective tax rates for Joseph Allen, saving to after-tax brokerage or pre-tax 403(b) for Gigi in Illinois, the arithmetic of Roth conversions for Carl Spackler in Florida, and the mega backdoor Roth for Jefe in Texas. For something completely different, we’ll wrap it up with a discussion of tax forms that need to be filed for your solo 401(k) depending on the account balance, for Smitty in The Villages. Access this week's free financial resources and the episode transcript in the podcast show notes, and Ask Joe & Big Al On Air for your Retirement Spitball Analysis, at https://bit.ly/ymyw-477

Timestamps:

00:44 - Marginal Vs. Effective Tax Rate: Going All Roth Isn’t the Best Strategy? (Joseph Allen, Wichita, KS)
14:32 - Free retirement calculator EASIretirement.com
15:37 - I’m 43 and Will Have $2.4M in Retirement. Should I Save to After Tax Brokerage or Pre-Tax 403(b)? (Gigi, IL)
23:17 - Is There a Break-Even Calculation for Roth Conversions? (Carl Spackler, FL)
29:30 - Retirement Income Strategies Guide - free download
How to Create a Steady Stream of Retirement Income - YMYW TV
30:38 - Mega Backdoor Roth: Must I Convert Traditional IRA When I Roll After-Tax Money? (Jefe, TX)
36:29 - Must I File Form 5500-EZ If Solo 401(k) Had No Balance at Year-End? (Smitty, The Villages)
42:18 - The Derails

Transcript

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0:00.0	Are there ever times when going all Roth isn't the best strategy?
0:04.0	How do you determine the break-even point on doing Roth conversions?
0:07.3	That's today on Your Money, Your Wealth podcast number 477, as Joe and Big Al spitball on
0:12.9	marginal versus effective tax rates for Joseph Allen, saving two after-tax brokerage or pre-tax
0:18.7	403B for Gigi in Illinois, the arithmetic of Roth
0:22.4	for Carl Spackler in Florida, and the mega backdoor Roth for Hefe in Texas.
0:27.8	For something completely different, we'll wrap it up with a discussion of tax forms that need
0:31.6	to be filed for your solo 401k, depending on the account balance, for Smitty in the Villages.
0:37.2	I'm producer Andy Last, and here are the hosts of Your Money, Your Wealth,
0:41.0	Joe Anderson, CFP and Big Al Clopine CPA.
0:44.8	All right, here we go.
0:46.0	We got Dear Roth brothers, your friend, Joseph Allen, Joseph Allen.
0:49.2	Joseph Allen.
0:50.1	Is he your friend?
0:50.6	You know, Joe?
0:51.9	You know, it's a great name, Joseph and Alan.
0:54.9	Yep.
0:55.5	Wow.
0:57.2	That's his point here.
0:59.6	Oh, then here we go.
1:00.7	You didn't pick up that name last time I wrote it in.
1:02.8	Oh.
	...

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