Optimizing Tax Efficiency Through Roth 401k to Roth IRA Transfers

In this episode: 72t, Roth 401k’s, Roth IRA’s, The Pro Rata Rule, PUQME, HSA’s, Retirement and Education, and Roth Conversions.

In one of our faster update episodes ever, friend of the show Sean Mullaney re-joins Brad to follow up on the episode we published back in February, “How to Access Your Retirement Accounts Before 59.5,” as well answer some of the questions our community had around the subject. We in the FI community know that retiring is an option way sooner than we were originally led to believe, so listen along as Brad and Sean shed some light on ways you could potentially access your retirement savings before facing the edge of your golden years.

Sean Mullaney:

• Website: fitaxguy.com
• Website: mullaneyfinancial.com
• Twitter: @SeanMoneyandTax
• YouTube: @SeanMullaneyVideos

Timestamps:

• 1:05 – Introduction
• 1:58 – Optimizing for 72t
• 10:25 – Roth Conversions and Premium Tax Credits
• 22:21 – Roth 401k and Roth IRA
• 27:08 – The Pro-Rata Rule
• 36:17 – PUQME and HSA’s
• 45:39 – Using Retirement Withdrawals for Education
• 50:40 – The Rule of 55 and Solo 401k’s
• 55:11 – Marriage and Taxes
• 61:32 – IRA and Health Insurance Premiums
• 64:13 – Conclusion

Resources Mentioned In Today’s Episode:

• How to Access Your Retirement Accounts Before 59.5 | Sean Mullaney | ChooseFI Ep 475
• Forget About Money Podcast
• Accessing Retirement Accounts Prior To Age 59.5
• Do You Have a Hidden Roth IRA?
• Retirement topics: Exceptions to tax on early distributions
• Subscribe to The FI Weekly!

More Helpful Links and FI Resources:

• Top 10 Recommended Travel Rewards Credit Cards
• Empower: Free Dashboard to Track Your Finances
• CIT Bank Platinum Savings Account
• M1 Finance: Commission-Free Investing, 1-click rebalancing
• CashFreely: Maximize Your Cash Back Rewards
• Travel Freely: Track all your rewards cards and points
• Emergency Binder: For Your Family’s Essential Info (code ‘CHOOSEFI’ for 20% off)
• Student Loan Planner: Custom Consult (with $100 Discount)
• Get a cheaper phone plan with Mint Mobile