I appreciate that Dave is trying to help, but this is rife with errors. It is irresponsible to give advice off the top of your head if you don’t have your facts straight. RMD age is 73, not 72.5. All retirement accounts could be subject to estate taxes if you are over the threshold beyond the IRS exemption. The Roth IRA and Roth 401(k) also have a 5-year rule, which will cause income taxes for withdrawals of gains within the Roth not held for at least 5 years. Employer contributions can be made to Roth 401(k)s, too, thanks to SECURE Act 2.0. Also George’s idea of using Roth conversions only after paying off the house is garbage. It could completely make sense earlier in life, but I get it; they have to preach the Baby Steps gospel. Yikes guys, swing and a miss on this one.
I disagree, I think paying off the house before a roth conversion is a safer path. If you get disabled or divorced or you’re elderly and can’t work as much, you’re going to wish you had a paid for house. Not extra Roth money
It is very dangerous to assume that everyone should convert to Roth at some point.
Aren’t Roth assets included in your estate and subject to 40% estate tax at death? There are no income taxes, but still subject to 40% estate tax?
I don't think you are correct. I inherited my mom's Roth tax free.
why is this guy even still working if he has all tat money
Dave is great at getting out of debt advice.
Investing advice not so much.
I appreciate that Dave is trying to help, but this is rife with errors. It is irresponsible to give advice off the top of your head if you don’t have your facts straight. RMD age is 73, not 72.5. All retirement accounts could be subject to estate taxes if you are over the threshold beyond the IRS exemption. The Roth IRA and Roth 401(k) also have a 5-year rule, which will cause income taxes for withdrawals of gains within the Roth not held for at least 5 years.
Employer contributions can be made to Roth 401(k)s, too, thanks to SECURE Act 2.0.
Also George’s idea of using Roth conversions only after paying off the house is garbage. It could completely make sense earlier in life, but I get it; they have to preach the Baby Steps gospel.
Yikes guys, swing and a miss on this one.
I disagree, I think paying off the house before a roth conversion is a safer path. If you get disabled or divorced or you’re elderly and can’t work as much, you’re going to wish you had a paid for house. Not extra Roth money
First