Aaron Millage, a financial advisor from Targeted Wealth Solutions and a former U.S. Air Force pilot, dives into the intricacies of the Mega Backdoor Roth IRA. He explains how some employer 401k plans allow for after-tax contributions, providing an opportunity for increased Roth IRA funding. Millage articulates effective strategies for timing contributions and withdrawals, as well as key tax implications. He also emphasizes the importance of personalized retirement savings decisions and shares valuable advice for high-income professionals navigating their financial futures.
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volunteer_activism ADVICE
Check New 401k Details Early
Before deciding where to contribute to 401k in a transition year, get detailed info on the new employer's plan terms.
Understand if and when you can contribute or get a match before leaving residency to avoid missing benefits.
volunteer_activism ADVICE
Effective Asset Protection Strategy
Asset protection relies on insurance, legal structures, and understanding legal risks.
Simply splitting investments between spouses offers limited protection in most states and can complicate relationships.
volunteer_activism ADVICE
Caution with Margin Use Early
Avoid leveraging portfolios early in your career given existing debts and risk.
Use margin cautiously only if you have an information edge; otherwise, focus on steady savings for financial independence.
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The Mega Backdoor Roth IRA allows you to contribute an additional amount into an Roth IRA due to the fact that some employer 401k plans allow after-tax contributions. Listen to this episode to see if and how you can take advantage of this opportunity. See the full transcription and links to everything talked about in this episode at https://www.whitecoatinvestor.com/classic-blog/.
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