Видео

Glad you enjoyed it!

Yes, but it varies by lender. Flagstar and Regions are two that come to mind for PAs in particular, but I know there are others.

Yes, it can vary by lender, but many programs do allow pharmacists to qualify 🎉

Thank you! 🙏 Yes, correct. If you made a $7k non-deductible contribution in 2024, but it grows to $7,900 at the time of the conversion, the $900 would be taxable. In terms of completing the 8606 correctly, you should work with your accountant, but your notes match up to what we like to see. Line 1 in nondeductible contributions for that given tax year should be listed there ($7k in your example). Part II, Line 18 is usually where you would see the taxable amount reported ($900 in your example). I am using the 2023 8606 since 2024 is not out yet, so the lines/form wording may not be the same in 2024, so just watch for that.

Backdoor Roths are tax-neutral and usually used during your working years, since we are being forced to use a work around due to higher income limits not allowing you to save directly to a Roth IRA. Roth Conversion are more or less a specific move in order to "fill up" lower tax brackets while income is lower (usually between retirement and RMDs). This should also help lower your future "forced" tax bill caused by RMDs. These will increase your tax bill, but purposely. Great question. It is complicated, so that is a very short version. I also saw your other note and I will work on a future video for this topic. Thank you!

Thank you 🙏

In your case, you should not stop being you. Be you, Henry. 😉

Thank you for watching! Glad you enjoyed it! It is complicated, but for most of our clients (high income households) we are not leaving any pre-tax dollars on the table until those tax brackets come down. One thing you can do to start to build up some Roth assets while not leaving any pre-tax dollars behind is Backdoor Roth IRA contributions. It is a very personal question with a lot of moving parts. Sorry to leave it open-ended.

Not sure I follow this, but thanks for the comment!

Get from point A to point B (safely 😉) and that is all you need! 🙌

Love this! I think the issue for many (probably myself included), we are intimidated by the “fix” part. However, I will say with RUclips, I feel like many of us can fix things we never imagined. Most importantly, good work Chris! 👊

Everything is expensive these days 😔

Yes, this is true but CRNAs will vary from bank to bank. Not all will approve CRNAs.

Full blog post here: wealthkeel.com/blog/7-tips-for-hiring-your-nanny/ Full RUclips video here: ruclips.net/video/wJRL7W29R4Q/видео.html Thanks for asking! 🙌

Thank you 🙏

I assume #4 is your favorite 🐶

Correct, that’s the interest rate they charge on underpayment penalties

@@WealthKeel can first time penalty abatement be used on that?

​@Sharpshooter649 This is a solid question, but it is likely better for your accountant or an accountant. I was under the impression that was usually used for failure to file, pay, or deposit.

Not sure I follow…

Yes! Very good point!

It is a fair question, and I am not going to sugarcoat our $1,200/m fee. However, the reality is that for you to hit that number, you have an annual income of $500k-$1m and a net worth of $1m-$3m. We are finding much larger "leaks" for our clients in that income and net worth range year in and year out. Our current waitlist is now for May 2025, so we could argue that we need to increase those fees soon to slow demand (we don’t plan too 😉).

Not sure if I follow your comment exactly, but, with a DAF contribution if it allows you to get over the standard deduction it would help lower your federal tax bill in that year.

@@WealthKeel The tax bracket doesn’t have to be lowered from 37% to 24% in order to receive a deduction from charitable contributions correct?

@@Felishad11 That's Correct. There is no rule that would require lowering a tax bracket(s) to use a DAF.

What we usually do is take out some amount from RMD to charitable 501c to church. How will this DAF work with QCD? Thanks!

Yes, all clear. TSP is not included in the pro rata calculations. 👍

Well, technically, the videos starts at 00:01 and chapter 1 starts at 00:44 😉

Hi Shelly! Contact your 529 plan provider and they should have a form ready to go for you. For example, we use Utah's 529 plan for our kids, and they have a form called "Roth IRA Rollover Request." It is a three page PDF to move the funds to the Roth IRA from the 529.

@@WealthKeel thank you! 😊

The owner of the 529 can also be the recipient of the plan. Therefore it can also be used to backfill the Roth IRA for those that maybe planned to go back to school but did not end up doing so. It is especially helpful if you are someone that started contributing to a Roth IRA later in life. It's could be looked at as an additional way to catch up on contributions. Am I adding this up correctly so far?

​@@MayaR-gk3oq I am a little lost in your note. Are you saying you funded a 529 plan for yourself to go back to school and then didn't use those funds, and now the goal is to move those to your Roth IRA? Are you the owner and beneficiary?

@@WealthKeel yep

😂 You sounded legitimate until you said variable life. Take that permanent insurance non-sense to another channel. Not the place here. If you are reading this as a high-income earner, for 99.9% you will never need permeant life insurance.

@@WealthKeel You’ve got a lot to learn brother, best of luck to you.

@WealthKeel Did you get a chance to read the Forbes article on institutional life insurance and how Fortune 100 execs use this to defer their excess w2 income after they get capped out on low limit ERISA 401(k) plans to better meet their income replacement goals ?

@@danielleon5074 You mean the one written by the guy that sells life insurance for a living but paid Forbes to write an article? 🤣

@@WealthKeel you’re a professional pretender, pick up a book lol

Great question. It would vary from person to person, but I would say the moment the car loan is more than you can earn at the bank (HY Savings) or even the stock market; so call it somewhere around 4.5%+, it could be a conversation. I would say north of 8%+, I would direct at least a little extra to it each month. It depends on a lot of other factors, but that should be a fair range to consider.

@@WealthKeel Awesome, thanks! Appreciate all your content.

@@Btmaster8 Thank you! 🙏

Fair point. Usually (industry jargon tilt too) only the Traditional IRA is called an “IRA,” while the others will get their titles before, like the Roth IRA, SEP IRA, and SIMPLE IRA. So while I do love a good click bait title, that was not the goal on this one.

Yes, unfortunately, that would also be included. 👎

@WealthKeel thank you for the response. Given that we are within the tax filing deadline, do I have the option to submit for an IRA excess removal and move the funds towards 2024 ROTH IRA contributions ?

@@rajatamilarasan7250 You will surely want to get that fixed. Moving it to 2024 may not help you, though, unless you are able to move the Rollover IRA somewhere (like a current 401k). If not, you will be in the same predicament in 2024.

@@WealthKeel yes, I have the option to move the rollover IRA to my current employers 401k and I am working on that right now. My IRA Excess removal with moving the funds to 2024 ROTH IRA was successful however I am trying to determine if that is considered a contribution (or) conversion. The original $6500 was indeed convereted from an traditional IRA so hoping that conversion applies to 2024 as well (though the funds were moved as being an excess from 2023 to 2024)

@@rajatamilarasan7250 The conversion year does not matter. The year you made the IRA contribution is the only thing that matters in terms of the BD Roth.

Thank you for the added context!

That number is highly regional. You specified Pittsburgh, but other regions throughout the Midwest and nation vary widely. Other factors include +/- obstetrics, inpatient vs outpatient-only (ambulist), etc. One of the biggest physician gripes I hear about the VA is its antiquated EMR, which I last used twenty-some years ago. Nothing about it changed since then… just a huge time waster, notwithstanding the dissatisfaction my colleagues have with so-called “modern” EMRs.

Thanks for the kind words and for subscribing! I am a little lost with notes here, but I'll take a swing. If you already recharacterized out of a Roth IRA back to an IRA, then what else would you need to recharacterize? At this point, you would have a clean slate to just proceed with your original goal (which I assume was a Backdoor Roth).

Good morning. Sorry for confusion. I did recharacterize from a TRAD IRA to a ROTH IRA. I would like to ‘undo’ this by recharacterize back to TRAD IRA but trustee is refusing to do so stating IRS guidelines. It’s my understanding that as long as timing is respected, recharacterize action can be executed limitlessly.

Unfortunately, I don’t have a good answer. This is not a situation I have encountered in the past, so I am not exactly sure how this would play out. I would ask your custodian to send you the IRS guideline that they are referencing to add clarity.

Thanks mlm6267! 🙏

Thank you! 🙏

Yea, that is all good. Just make sure the IRA contributions are two separate events, aka $6,500 for 2023 and then the $7,000 for 2024. The conversion can be one event. If you are working with an accountant (or self prepare) just make sure they are aware of the BD Roth for 2023 and add the form 8606. Most importantly, great job! 👊 I don't know your situation, but you could look to move your SEP IRA over to a Solo-K and then you would also be able to start BD Roths.

We usually aim for January with the primary goal of an extra year of compounding growth. However, we have some clients who will complete it right before they file their past year's tax return. In short, "it depends," but just getting it done is a win. 🙌

Thank you! Appreciate that! 👊

For the BDR, you are not out $7k, you invested $7k. For the Roth conversion, you are out $7k from the taxes. While I see where you are coming from, this is more of an apples-to-oranges comparison as the IRA is forcing you to do conversions because of pro-rata rule in your example.

@@WealthKeel I appreciate your replay and the chance to test out my thinking. I'm a big fan of BDR, however, I recently left and employer and started thinking about different options for my old 403b. I've heard some people say that .when you leave an employer and have the opportunity to roll over a 403b/401k to an IRA, don't do it b/c it messes up your opportunity to do a clean BDR. . Maybe it would be more accurate to say that in each scenario, I' would have moved $7K from my checking acct to help me increase my Roth IRA balance. In the BDR scenario I've added 7K into a Roth IRA and the conversion scenario, I've added 17.5K into a Roth IRA. Am I missing something? Thanks again.

@PhillipSniderMusic If you are forced to do conversions, as you seem to be, sure, your Roth balance will be higher based on $17.5k vs. $7k, but no matter who you cut it, you paid $7k in taxes at a 40% rate when a BDR was $0 in taxes. This is why we favor BDR during working years, and then Roth conversions between retirement and RMDs.

Thank you! 🙏

It is okay to convert the $12. It would be taxable, but it will keep everything cleaner. This will be more common now that there are decent rates on cash. Moral of the story, it will not be an issue as long as the $12 was the only IRA funds on 12/31. You can get that all cleaned up when you file your taxes.

Cruel system 😞

Custodian won't make a difference. Find one you are happy with and stick with them; Fidelity and Vanguard are both very good. Yes, you can complete 2023 & 2024 in early 2024, but do it as two separate events. $6,500 for 2023 and then $7,000 for 2024.

Maybe you are talking about if someone already have a traditional ira account with a X balance. Don't out the $7000 into an exiting traditional IRA. Is that what you mean right?

Great question. Having the account(s) open (Trad IRA, SEP IRA, SIMPLE IRA) is okay, you just can't have a balance in any of those accounts as of 12/31 or you will have a pro-rata issue.

@@WealthKeel let me ask you another q. I have 5 rollover IRAs (aka traditional , not Roth) in Fidelity. To do the backdoor Roth, I will open a new fresh 0 balance traditional IRA, put in the 7000 in, after it settles, convert to a Roth IRA. My other 5 rollover IRAs can continue as they are. You do not mean that all 5 rollover IRAs need to be converted to Roth right? I don't think so but confirm with you.

All 5 would need to be moved. $0 balance on 12/31 for all IRAs. Converting all 5 would likely be a tax problem, so you need to try to move them into a 401k, if that is a good option for you.

@@WealthKeel WOW. Then how about this? In my chase bank, I don't have any traditional or Roth IRA. Can I do a backdoor Roth on a Chase bank? That way my Fidelity's IRA remain untouched, since Fidelity and Chase are different financial organizations.

MAGI (modified adjusted gross income). It is kind of annoying that they use that, but here is a little more info: www.investopedia.com/terms/m/magi.asp

Yes, the key is no IRA, SIMPLE IRA, or SEP IRA balances on 12/31. Don't forget to check back on your IRA as well after the conversion, as it is not uncommon for a few dollars to show up from residual interest. While that wouldn't have a devastating effect, it is just easier to move it over.

Inherited IRAs are not included in the pro-rata calculation.

Thank you@@WealthKeel

Love this. Great idea!

SAVE will be the better route while in training for pretty much all situations. The tricky part is making sure you are in PAYE (if needed) before 7/1/2024. There are a lot a moving parts with student loans, taxes, and future income, but SAVE should be the strongest option while in training, and possibly as an attending depending on your income/total loans.

You're hired!