WCI #423: Rollovers, Roth, and Investing

Jun 12, 2025

Dive into the world of Roth accounts with insights on Mega Backdoor Roths and the pro rata rule. Discover strategies for high yield dividend funds and learn about effective asset allocation versus location. If the S&P 500 isn’t your style, alternatives like Coinbase are discussed. There's also an engaging conversation on financial challenges faced by medical professionals and the importance of a written investing plan. Get ready to make your money work smarter!

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ADVICE

Advice on 409A Deferred Compensation

Treat 409A non-qualified deferred compensation plans like non-governmental 457B plans.
Contribute cautiously, balancing employer solvency risk with tax deferral benefits.

ADVICE

Rollover and After-Tax IRA Strategy

Roll over tax-deferred IRA funds into your 401k if plan allows to isolate after-tax IRA basis.
Convert after-tax IRA money to a Roth IRA tax-free to avoid pro rata rule complications.

ADVICE

Mega Backdoor Roth: Ask Right Questions

To execute a Mega Backdoor Roth, confirm your plan allows after-tax contributions and in-plan Roth conversions.
Clarify terminology with HR and ask specific questions rather than using popular investing jargon.

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Today we are back to our most asked about topic: Roth. We answer a question about rollovers, then we talk about Mega Backdoor Roth and then the regular backdoor Roth and the pro rata rule. We then switch gears and talk about high yield dividend funds and answer a question about asset allocation and asset location. We end the episode talking about what to do if you are averse to the S&P500 including Coinbase.

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The White Coat Investor has been helping doctors with their money since 2011. Our free financial planning resource covers a variety of topics from doctor mortgage loans and refinancing medical school loans to physician disability insurance and malpractice insurance. Learn about loan refinancing or consolidation, explore new investment strategies, and discover loan programs specifically aimed at helping doctors. If you're a high-income professional and ready to get a "fair shake" on Wall Street, The White Coat Investor is for you!

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