Roth IRAs are a highly recommended retirement savings option but it’s not all smooth sailing. Student loan repayment, income limitations, and tax filing status can lead you to treacherous waters. Learn the missteps to avoid and how to correct mistakes before they escalate into hefty fines and taxes. Join student loan advisors Meagan McGuire, ChFC®, CSLP®, Sim Terwilliger, CFP®, CSLP®, and Sam Silberstein, CFP®, CSLP®, and explore contribution deadlines, the pro-rata rule, form 8606, the impact of being in a community property state, and how dual-income households should strategize their student loans and retirement savings. If you’re tired of cookie-cutter advice, you don’t want to miss this episode.
In today’s episode, you'll find out:
- Why lack of profession-specific planning is the biggest mistake you can make in your financial journey
- The impact of the pro-rata rule when converting traditional IRA funds to Roth IRAs
- When to contribute to your Roth IRA to maximize your retirement savings
- Why high-earners might want to contribute to a Roth IRA despite income limits
- How to fix backdoor Roth IRA issues, including tactics for zeroing out accounts
- The importance of prioritizing pre-tax savings when you’ve got student loans
- How community property states complicate Roth IRAs and what to do about it
- Dodging extra taxes and penalties is possible if you contributed to a Roth by mistake
- How side hustlers and independent contractors can leverage Solo 401(k) plans
- Why income projections are critical to nail the right contributions and keep the IRS happy
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Do you have a question about student loans? Leave us a voicemail here or email us at help@studentloanplanner.com and we might feature it in an upcoming show!