Money Guy Show Secret Investing Strategies of the 1% (That Even YOU Can Do)
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May 31, 2024 Explore the secretive investment tactics of the affluent 1%, including backdoor Roth conversions, IRA rollovers, mega backdoor Roth conversions, and maximizing tax advantages with HSAs. Learn about optimizing investments through capital gains planning and the value of financial advisors in making sound investment decisions.
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Backdoor Roth Conversions
- Consider backdoor Roth conversions if your income exceeds Roth IRA limits.
- This involves contributing to a non-deductible traditional IRA, then converting it to a Roth.
Backdoor Roth Eligibility
- Only use backdoor Roth conversions if you're above the Roth income limit and have no other IRAs.
- Other IRAs trigger the pro-rata rule, making conversions taxable.
Mega Backdoor Roth
- Utilize mega backdoor Roth conversions within your 401(k) if your plan allows.
- This involves after-tax contributions up to the 415 limit, then converting to a Roth IRA.