White Coat Investor Podcast
WCI #408: Roth IRAs, 457(f)s, and Other Retirement Account Questions
Feb 27, 2025
Dive into retirement account intricacies, like Roth IRAs and the pro rata rule. Learn strategies for self-directing your solo 401(k) and the differences between 457(f) and 457(b) plans. Discover when to make Roth contributions while grappling with contribution limits. Financial guidance for transitioning from residency to fellowship is also covered, focusing on tax-efficient strategies and real estate investments. Patience and education are emphasized for long-term financial success in the medical profession.
51:04
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Quick takeaways
- Understanding the pro rata rule is essential for high-income earners utilizing backdoor Roth IRAs to optimize retirement savings.
- 457F plans offer higher contribution limits than 457B plans, but they exclusively depend on employer contributions and have distinct tax implications.
Deep dives
Impact of Proposed Interest Rate Legislation
Recent discussions highlight a bipartisan effort in the Senate to reduce credit card interest rates to 10%. This initiative brings attention to the potential drawbacks of lowering interest rates, such as limited credit availability as lenders may shy away from offering unsecured loans at lower returns. The risks associated with unsecured debt are significant, especially as defaults can lead to diminished lender willingness to extend credit. Overall, any legislation of this nature must balance the potential relief for borrowers against the feasible operations of lending institutions.
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