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.
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volunteer_activism ADVICE
Handling Traditional IRA Money for Backdoor Roth IRA
Roll your traditional IRA into a 401(k) or TSP to avoid pro-rata issues with backdoor Roth IRAs.
Consider a Roth conversion if you can afford the tax bill, especially for military personnel.
volunteer_activism ADVICE
Solo 401(k) Sub-Accounts
Utilize three sub-accounts (traditional, Roth, and after-tax) in your solo 401(k).
This setup enables mega backdoor Roth IRA contributions and provides flexibility.
volunteer_activism ADVICE
Understanding 457(f) Plans
Understand 457(f) plans before contributing, as they vary significantly.
Read the plan document carefully to assess suitability for your financial goals.
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Today we are answering your retirement account questions. We talk about Roth IRAs and the pro rata rule, we talk about self directing your solo 401(k). We discuss 457(f)s and 457(b)s. We talk about when to do Roth contributions and 401(k) contribution limits and more!
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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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