The Daily Churn Ep 55 - The Big Churn: Roth Conversion Ladders
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Dec 15, 2023 Explore Roth IRA loopholes for early retirement, optimizing income to reduce taxes & maximize ACA benefits, and common mistakes to avoid. Learn about Roth IRA basics, conversion ladders, managing sequence of returns risk, calculating income for conversions, and understanding order of distributions in Roth IRAs and Roth 401ks.
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Roth IRA Benefits and Limitations
- Roth IRAs offer tax-free withdrawals on earnings, unlike regular brokerage accounts.
- However, contributions are limited, and earnings are inaccessible until age 59.5.
Roth IRA Loopholes
- Congress created loopholes to bypass Roth IRA limitations.
- These include the backdoor Roth IRA (for income limits) and mega backdoor Roth IRA (for contribution limits).
Pre-Retirement Roth IRA Strategies
- Explore pre-retirement Roth IRA loopholes like backdoor and mega backdoor Roth IRAs.
- Refer to resources like the All the Hacks podcast for detailed information.