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496 | Mailbag: Roth vs. Trad, $35k Roth to 529, Combining Finances | Rachael Camp

Jun 17, 2024

Financial expert Rachael Camp joins the hosts to discuss Roth vs. Traditional IRAs, converting 529 funds to Roth IRAs, gifting money to children, and combining finances after marriage. They cover tax arbitrage, considerations for retirement accounts, rules for conversions, implications of gifting money, and tips for managing finances as a couple. An informative and engaging episode for those looking to optimize their financial planning!

01:11:48

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Episode guests

Rachael Camp

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Quick takeaways

Consider future tax rates when choosing between Roth and traditional IRAs for retirement planning.

Tailor your tax strategy based on personal circumstances for optimal retirement plan with Roth accounts.

Manage 529 funds wisely to avoid penalties and navigate state tax implications for better financial planning.

Deep dives

Conversion of 529 Funds to Roth IRAs

Families can now transfer up to $35,000 from unused 529 funds to Roth IRAs in a bid to resolve overfunding issues. The 15-year rule stipulates that the account must be open for 15 years before conversion, ensuring adequate planning. Contributions need to match earned income, encouraging strategic planning based on individual circumstances.

Tax Bracket Strategies for Roth and Traditional Investments

03:36

Consider All Variables in Retirement Planning

01:34

Considerations for Opening a Brokerage Account for Children's Education Fund

04:31

Navigating Joint Finances After Marriage

04:15

Intro

2min

Tax Arbitrage and the Choice Between Roth and Traditional Retirement Accounts

13min

Comparing Traditional and Roth Retirement Accounts

21min

Explaining the Conversion of 529 Funds to Roth IRAs up to $35,000

4min

Rules and Implications of Converting Roth IRAs to 529 Plans

15min

Implications of Gifting Money to Children

8min

Combining Finances After Marriage

9min

Wrap-Up and Community Engagement Announcement

2min

In this episode: roth versus traditional IRA, second generation FI, FI and newlyweds, and retirement planning optimization.

This week we are diving back into the listener Mail Bag with our returning guest Rachael Camp to answer questions from the community! Today we will be discussing the differences between Roth and Traditional IRAs and the future variables and factors you should consider, as well as discuss the new rules and considerations surrounding 529 plans and how to best financially plan when considering your children and your spouse. Listen along as YOU, the community, dictate the conversation with your hot-button FI questions!

Rachael Camp:

Website: rachaelcampwealth.com
Twitter: @camp_wealth
YouTube: @CampWealth
Instagram: @campwealth

Please note:

Rachael Camp offers advisory Services through Creative Financial Designs, Inc., a Registered Investment Adviser, and Securities are offered through cfd Investments, Inc., a Registered Broker/Dealer, Member FINRA & SIPC, 2704 S. Goyer Rd., Kokomo, IN 46902. 765-453-9600. Camp Wealth is not affiliated with the CFD companies.

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ChooseFI

496 | Mailbag: Roth vs. Trad, $35k Roth to 529, Combining Finances | Rachael Camp

Episode guests

Podcast summary created with Snipd AI

Quick takeaways

Deep dives

Conversion of 529 Funds to Roth IRAs

Tax Arbitrage Play: Roth vs Traditional IRAs

529 Fund Tax Implications and Penalties

Considerations for 529 Accounts and Tax Impact

Joint Finances After Marriage and Account Management

Tax Bracket Strategies for Roth and Traditional Investments

Consider All Variables in Retirement Planning

Considerations for Opening a Brokerage Account for Children's Education Fund

Navigating Joint Finances After Marriage

Remember Everything You Learn from Podcasts