Tag: Roth Conversions
How To Maximize Your Retirement Savings Using The Mega-Backdoor Roth Strategy (Ep. 18)

How To Maximize Your Retirement Savings Using The Mega-Backdoor Roth Strategy (Ep. 18)

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Are you looking for ways to maximize your tax-advantaged retirement savings bucket? (In other words, a savings bucket where both growth and withdrawals are tax-free!)

A mega backdoor Roth 401(k) might be what you need.

This week, Adam Scott, CFP®, delves into the ins and outs of a mega-backdoor Roth 401(k), a financial maneuver that can potentially help you supercharge your retirement savings. You will also learn how an IRA is different from a 401(k) account, and ways to optimize your retirement income strategy.

Adam discusses: 

  • Traditional vs. Roth accounts — what might be more suitable for your situation?
  • A brief overview of 2024 contribution limits
  • How to implement the mega backdoor Roth 401(k) strategy
  • Benefits for high-income individuals, business owners, and those who’ve had a huge cash inflow (e.g., inheritance or selling a house)
  • Potential “landmines” to look out for while implementing this strategy
  • And more

Resources:

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Use Roth Conversions to Reduce your Lifetime Taxes: Turning Financial Lemons into Lemonade (Ep. 17)

Use Roth Conversions to Reduce your Lifetime Taxes: Turning Financial Lemons into Lemonade (Ep. 17)

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There are many benefits to  Roth conversions. But beware! Don’t step on a land mine when implementing that can blow your finances up! 

In this episode, Adam introduces his new co-host, Patrice Sikora, before discussing the benefits of Roth conversions. They highlight how these conversions can help reduce taxable income and potentially avoid higher taxes and higher Medicare premiums in retirement. Adam also discusses the impact of Roth conversions on financial aid for college and the importance of considering state taxes. The conversation concludes with an important reminder to not jump into Roth conversions alone and to avoid common mistakes by consulting a financial professional.

Adam discusses: 

  • An explanation of Roth conversions and their benefits
  • A story about a client who benefited from a Roth conversion during a low-income year
  • What the widow’s penalty is and how Roth conversions can help mitigate it
  • Why it’s important to plan carefully and consult a financial professional for Roth conversions
  • Benefits of doing Roth conversions during the “golden decade” of retirement (ages 60-70)
  • Potential impact of Roth conversions on financial aid for college
  • Why keeping state taxes in mind when planning Roth conversions is important
  • Tax arbitrage and the benefits of having different investment buckets (pre-tax IRAs and Roth IRAs) for managing taxes during retirement
  • And more

Resources:

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Top 10 Year-End Tax Tips (Ep. 5)

Top 10 Year-End Tax Tips (Ep. 5)

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The end of the tax year is rapidly approaching, and we have 10 tips to help you minimize your taxes.

In this episode, Adam shares his Top 10 year-end tax tips as the end of 2022 nears. He talks about Roth conversions, why and when it’s a great strategy to reduce taxes, and how it works. Adding to Roth conversions, Adam shares a few stories about putting Roth conversions into practice and finishes with a speedy roundup of nine other great year-end tax strategies.

Adam discusses: 

  • What a Roth conversion is
  • Why a Roth conversion is a great tax-saving strategy and how it works
  • Using Roth conversions can go wrong if you do not know what you are doing, as described in a few examples
  • And more

Resources:

Connect with Adam Scott: 

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