Right there with you. I'm retiring early, no debt. Kids are taken care of. Building my dream home on 11 acres, looking over the river valley. there are loads of ways to make a killing right now, but such high-volume near impeccable trades can only be carried out by real-time experts.

@@harrisonkyunghee Inflation is over 10% here in the UK, but as we know it's definitely way more than the Government would like to admit. My plan is to earn more passive income and ride this out, can your Investment-adviser assist?

@michaelgraham Sure, the Investment advisor that guides me is “Olivia Rene Reyes” and she's renowned and has quite a following. So it shouldn't be a hassle finding her. Just look her up.

@@harrisonkyunghee Olivia really seems to know her stuff. I found her website, read through her resume, educational background, qualifications and it was really impressive. She is a fiduciary who will act in my best interest. So, I booked a session with her

My man!

Holding fixed-income assets in tax-deferred retirement funds as opposed to taxable accounts has additional advantages. If you don't know how to invest in the market, get some advice from a financial counselor.

Having an investment adviser is the best way to go about the stock market right now, especially for near retirees, I've been in touch with a coach for awhile now mostly and I made over $800K within a short time

I wouldn't mind consulting the advisor who guides you, I really want to grow my retirement fund since I could retire in 3 years.

Alicia Estela Cabouli* Her honest approach gives me complete ownership and control over my position, and her rates are incredibly affordable given my ROI

I just googled her name and I'm really impressed with her credentials; I reached out to her since I need all the assistance I can get. I just scheduled a call.

Prioritizing effective personal finance management holds greater significance than the sheer amount saved, irrespective of income source. Consulting a certified financial advisor can offer tailored strategies to optimize financial results by reducing expenses and enhancing income, regardless of whether it's earned through employment or investments.

I wholeheartedly concur. At 60 years old and newly retired, my external retirement funds total around One million two hundred fifty thousand dollars.. With no debt and minimal retirement fund allocation relative to my portfolio's value over the last three years, I recognize the importance of a financial advisor. Neglecting them isn't an option; however, thorough research is vital to find a trustworthy fiduciary advisor.

​ *@shirleygarland4766* This aligns perfectly with my desire to organize my finances prior to retirement. Could you provide me with access to your advisor?

I'm guided by "Camille Alicia Garcia" an experienced coach with extensive financial market knowledge. While you can consider other options, her strategy has yielded positive results for me. She offers valuable insights, including entry and exit points for the securities I concentrate on.

Thank you for the information. I conducted my own research and your advisor appears to be highly skilled and knowledgeable. I've sent her an email and arranged a phone call. Her expertise is impressive, and I'm eagerly anticipating our conversation.

I don't regret the numerous financial mistakes I've made in the past since I've learnt from them. But the biggest one was planning my finances without consulting with a licensed financial counsel.

Indeed, I did make use of a financial counselor. As I get closer to retirement, their advice has been really helpful. I thought compound interest on index funds wouldn't be sufficient because I started late. It's amusing how I've done better than colleagues who have more years of investment experience. I've profited more than $886k tax free.

Please who is the consultant that assists you with your investment and if you don't mind, how do I get in touch with them?

The decision on when to pick an Adviser is a very personal one. I take guidance from ‘Natalie Lynn Fisk‘ to meet my growth goals and avoid mistakes, she's well-qualified and her page can be easily found on the net.

Thank you for the lead. I searched her up, and I have sent her an email. I hope she gets back to me soon.

Margaret. has the appearance of being a great authority in her profession. I looked her up online and found her website, which I reviewed and went through to learn more about her credentials, academic background, and employment. She has a fiduciary duty to protect my best interests. I sent her an email outlining my objectives and also booked a session with her; thanks for sharing.

Who recommended that amount?

Friday

@@trigger455 where’s the info to be a part of it?

I truly agree with you on that,

I must say crypto is the future and with the way Bitcoin is climbing so high it's really advisable for people to invest now.

Mrs Kamilla helped me recovered all I've lost trading by myself

Ever since I lost my job with the ministry, I have been surviving through my investment with her, am so glad I invested when I did. I’m earring $25k weekly with her

Investment is that tiny line that separates the rich from the poor.

The truth is that people are finally waking up to the fact that our systems are breaking down in thousands of different ways all around us. Personally, the financial market seems like the only way to go with my long-term horizon (accumulated about £557,000 in earnings since May 2021), but if you don't have that time luck, it's a tough market out there down almost nowhere feels safe!!

Definitely! All of this happened in less than a year after *JENNY PAMOGAS CANAYA* told me what to do. I started with less than $100,000, and now I'm about 17,000 short of having a quarter million dollars..

I bet you were using a hedge fund or a financial advisor. People who do can profit a lot from the market. I rake in a lot monthly from the market too, without much work. Expert fund management is an underrated hack for making money.

You're right. I was actually using a financial advisor. I had been investing himself for a while, but I didn't make much profit until I switched. My life changed in a matter of months, literally.

This sounds great. I want to switch to using an advisor. What do you think?

I'm personally guided by *Sharon Louise Count,* an experienced coach with extensive financial market knowledge. While you can consider other options, her strategy has yielded positive results for me.

@@gregorywhemhow much should financial advisors be charging is it a monthly fee or yearly fee?

Employer contribution on solo 401k can be made up until filing deadline+extensions. Emoloyer contribution lines are blurred when non S-corp single member LLC filing with pass through income/ no payroll.

Well the bigger the risk, the bigger the reward and such impeccable decisions are better guided by professionals.

A lot of folks downplay the role of advisors until being burnt by their own emotions. I needed a good boost to help my business stay afloat, hence I researched for license advisors and came across someone of due diligence, helped a lot to grow my reserve notwithstanding inflation, from $275k to approx. $850k so far.

How do I Find this Lady?

I started out with an FA named Nicole Desiree Simon Her honest approach gives me complete ownership and control over my position, and her rates are incredibly affordable given my ROI.

Thank you for the lead. I searched her up, and I have sent her an email. I hope she gets back to me soon.

I don’t know the answer to your question but why would that be any different than buying 100k if a stock that doubled in a day? There’s no issue with that. And Peter Thiel has something like 4 billion in his Roth IRA so certainly he had many instances of this occur.

if the sdira is roth, rollover your 401k roth to your sdira roth.

I was told I could only do that if I left the job. I’m still working and contributing to my company 401k, so as I understand it I cannot rollover that 401k. If there is a way, please share it. Thanks.

@@anthonyputorek7095 Not that i know of. Its an artificial restriction in your employers plan.

Yes, sortof. I've done it for years. First, the thing to know is this... money you rollover into a Roth IRA becomes stuck as Roth IRA. And SD-IRA has been a more popular target for politicians to restrict vs. 401k. You might consider how you can do this with a Roth Solo 401k. Now, to your question... employer plans typically restrict a) your contributions, and b) employer matching, and c) gains on both. What does that leave? Contributions to the After-tax bucket (which is neither pre-tax nor Roth; it's a hybrid). These contributions and gains are often unrestricted from being rolled over once per year, directly into a Roth IRA or another Roth 401k. Bingo. (This is the main vehicle for doing the Mega Backdoor Roth 401k that this video discusses.) So, you may not be able to do this with money you already have in your 401k, because it probably isn't in After-tax. But you can start contributing heavily to that bucket and have money that can be rolled out of your 401k without quitting your job - this gets you a lot more than $7k/year into a Roth SD-IRA or Roth Solo 401k where you can do creative investing.

If your company’s 401k plan allows in service distributions then you can do it. If not, then you can’t move it out until you leave that job. Just ask the administrator of the plan for help with your question.

Ask your plan provider if they can do a Roth in plan conversion and just convert within side the 401k thus not needing an in service distribution

The matching is counted toward the total 415 (c) limit unless you can set up a separate 401 (a) plan for matching then you can contribute the total of 61k (2022) in a 401k + matching in a 401(a)

Why not just convert to a ROTH IRA? As long as the money in your Trad IRA was taxed, you just move it to ROTH. Then if you leave your job you convert the Roth 401k to your Roth IRA. Easy peasy.

Would any part of the settlement have been for lost wages (or anything else reported on a Form W-2)? If so, that part (reported on Form W-2) could be put into a retirement plan. I am not aware of any way to put tax-free personal injury damage money into tax-advantaged retirement accounts.

Been down this path... your contributions cannot exceed your earned income, and there's no way to assign the claim to an entity that your Roth owns. If you setup an LLC + Solo 401k, you might have more flexibility because you control the accounts, but the rules still apply. (e.g., contributions don't have to be made via paycheck deductions like they do with most corporate 401k plans)

@@hornbaker Yeah. It seems to me that if a contribution were less than the earned income, then it might be fine. It would be as if the income was invested and the untaxed settlement was used for living expenses.

Roth and pretax contributions are tax advantages so the IRS limits them to 20500 a year. After tax is non tax advantage money so there is no specific limit. The idea behind it is that you contribute after tax and then convert it to Roth which is a tax advantages source above your limit. Not all employees offer after tax contributions

I can show screen shots of me trying to contact my lawyers with no response

To have a chance to get your question answered on a podcast, please submit it to podcast.mainstreetbusiness.com/ OR contact my team at directedira.com/appointment/ Thanks!

Can't

You can, but you don't want to. Why? Employee contributions directly to Roth can be withdrawn immediately without penalty (even before 59.5), so long as you have had any Roth for 5 tax years. The remaining $40,500 that you contribute to the After-tax bucket is technically a conversion when you move it to Roth, even though no tax is due. That starts a separate 5-year timer on the $40,500 before it can be withdrawn, even if you're over 59.5.

What we do if employee doesn’t have conversation to Roth IRA from after tax account?

No, mega backdoor Roth IRA is only available if your 401k offers AFTER TAX contributions, different from pre tax & roth contributions that are standard for most 401k plans

I think if you change jobs you can transfer the 401k to the new job's account (not sure about this), so make sure the new job allows in-service distributions

Hsa $7300 for a family

What’s the problem though? Your money is already Roth unless you don’t like your investment options. Sounds like you can’t touch it until you leave.

@@michaelrudolph7003 Correct. I don't have access to it to move into any other ROTH options or other trading accounts. I think that's just how a company elects to set up the ROTH.

My question as well...

But can’t you withdrawal your principal from the ROTH?

@@jaredmarquis6680 yes you can withdraw the principal, but I suspect that in many cases the principal wouldn’t allow for early retirement (I’m assuming the investment growth makes up the majority of savings). Having a diverse portfolio of buckets (Roth, non-Roth, and non-retirement) to withdraw from does have some tax flexibility. One scenario where the principal might used effectively in early retirement is if your about 5 or so years out and use the ROTH conversion ladder approach to early retirement.

Can’t you just load up on dividend stocks and live off the taxed dividends? once that dividend income is sufficient of course.

There is much more to this process than they are discussing so be aware of what your company allows or doesn't allow. Your question falls under the "it depends" category. It really is up to your company and what they allow in your plan. First, your employer has to allow you to do "in service distributions." If they don't you can't rollover anything anyway. Second, if they offer you the option of ROTH 401k, you can't rollover those Roth 401K contributions you make into your Roth IRA until you are age 59.5 or if you leave the company. Also, if you get matching ( you said you don't) but if you do, you can't rollover company matching contributions because for one, those are always considered tax deferred comp so even if you are contributing to your Roth 401k, your company matching are being contributed to your Trad 401k where they will sit until they are vested and can be rolled out to a Trad IRA where you can convert them (and pay taxes on that conversion) to your Roth IRA. If your company does allow you to the option to contribute after tax money, you can roll over just that amount, but only up to the amount of times your company allows "in service distributions." Again it depends on your plan rules and each plan is different. They may allow 1 time per year or 1 time per quarter. So if this is possible, its best to wait until you have maxed out all those contributions before you do your Mega Back door. Lastly, if you are a HCE (Highly Compensated Employee) for 2022 that is you make over $305k, your ability to contribute to any deferred comp plans are eliminated once you reach that income level. DYOR its NOT this cut and dry and there are many moving parts this and its really boils down to your companies Savings Benefit Plans rules. Hope this helped a little...

@@rsjones1163 good response ! I think my plan told me years ago they wouldn’t do a “in service distribution” but maybe that was for a private Roth IRA type and not their own will have to look into again thanks ! Will piece things together

I’m pretty sure that’s what he just did. Max Roth IRA, max 401k to the match only, then contribute the 401k yearly max to the after tax 401k. This only works if your employer allows in service distributions which many do not, otherwise you can’t convert until after you leave your job and that will get messy.

@@michaelrudolph7003 and since that applies to most people like me, my question is: exactly HOW messy and is it worth doing in that case

After speaking with Fidelity, they explained to me that you have to move the earning associated with the after tax contribution as well.. But the pretax and roth contributions you do not.

Yes ,a IRA which is taxed on withdrawal.

Person or their spouse must have earned income (a job) to qualify for traditional IRA

Yes Larry, you or your spouse need earned income to contribute to an IRA/Roth IRA

Not every one.

To get your question answered, please submit it to podcast.mainstreetbusiness.com/ - thank you!

The additional $40,500 comes from after tax contributions to a 401k. You need to confirm with the administrator of the plan that in service withdrawals of those contributions are allowed. You only pay taxes on the gains of those contributions when performing a rollover to a Roth IRA.

@@BarbellFinancial you could also have in plan conversions, they are functionally the same, except the money stays in the 401k just gets recharacterized as a Roth instead of after-tax and then the earnings is tax free.

@@harrychufan yes, either approach is great if they are permissible

61000 - 20500 = ding ding ding ding

No to all 3. Re-watch the video... if you have too much income, you make a non-deductible contribution to traditional IRA and then convert it to Roth with no tax event. The difference between $61k & $67k is the over-50 401k catch-up. You contribute to Roth. Your employer matching goes into pre-tax, which you can choose to convert to Roth. Your employer will typically not let you take this money out of their plan until you terminate employment. You can also contribute to After-tax, which is often allowed to be rolled over (e.g., once per year) while still employed to an outside Roth account. Go to the bank and open two IRAs per person - a traditional IRA, and a Roth IRA. You deposit into the first one from your personal bank account, then later convert to Roth by ordering money moved to the second one.

If you are thinking about a Roth conversion in a 401k, then just deposit all of your contributions into Roth IRA now. The tax brackets are at historical lows. You can’t convert a traditional IRA to a Roth till your older than 59 1/2. If you do you will pay taxes on the converted amount plus 10% penalty. Depending on the amount converted and age you may have to pay a higher Medicare premium. Taxes will most likely be higher in the future due to all the money we are spending on the war and pandemic. In figuring out the Roth conversion calculation, if you have after tax and pre tax IRA (non Roth) they are calculated differently in the conversion process. So many rules to Roth conversions that if not done right you could lose more money in penalties than if you had just put money in the Roth in the first place. A Roth in a 401k or 403b is not limited to $6,000. Open a Roth account outside of work and fund it to start the clock ticking down to 5 years (the time to be vested). Roth’s outside of 401k or 403b are limited both in contribution limit and how much you make at you job (can you invest in a Roth outside of work). If you ever stop working at your job you then have a safe place to rollover your work Roth into your personal Roth. When you reach 59 1/2 you can then pull out money or let it stay invested in your personal Roth. Traditional IRA in 401k or 403b accounts are subjected to RMD with drawls at current 72 and they want to go to 75. Those are mandatory withdrawals from traditional IRA. If you don’t do it or forget then you will be penalized for the amount you should have taken out. Plus the older you get past the RMD age the more you pay. Roth IRA has no RMD. I hope this helps.

@@bwcimprint6985 Several corrections to your opening comments. Many people can't contribute directly to a Roth IRA, and nobody can do it at $61k+/yr, which is why this 401k technique is used. And you can absolutely convert traditional 401k or IRA to their Roth versions at any time without the 10% penalty - there is no requirement to be over 59-1/2. Roth IRA and Roth 401k are two separate beasts, with similar rules / benefits but some nuanced differences.

@@hornbaker thank you. Can I just go to the bank, open a roth IRA and deposit money from my personal bank account (without a traditinal IRA)?

@@amyhoang9140 Yes, if your income is not too high then you can just open a Roth IRA at the bank and deposit a personal check. If you make a high income, you need to do the 2-step "backdoor" method of depositing into traditional IRA and then converting to the Roth IRA. If you want to get more than $6-7k/yr into your Roth, then you will also need to do the 401k method - that can be used to add another $61-67k. Generally, people will start with the 401k method because employers will match some of your contributions, and that's free money.

Hey Liz! If you're wanting to do a Mega Back Door ROTH we can definitely strategize a way to do that! I would want you to get into a consultation with one of my attorneys, to discuss this! Call Emily at (888) 801-0010 ext. 2065 and she can help you!

Payroll only, but you can also live on your cash and defer 100% of your paycheck, if allowed to get the mqx in

If you roll your after tax contributions into an IRA that allows you to invest in crypto, like iTrust, then yes!

Who setup your 401k plan?

@@eric3434 My employer. Each employer can structure the administration differently..at least that's what I have been told. Now I can say this, I have rolled out a butt load of money 3 years ago into an rollover ira and at that time, I had asked the same thing; They told me exactly this; Your plan administrator doesn't allow us to 'cherry pick'. So when I rolled out Say $500k (Just and example) so much went into the rollover (the tax deferred stuff) and the 401k roth contributions, went into my ROTH IRA. If you know of a way to correct happy to hear. I have most of the components of the Mega Backdoor: I do the non deductible IRA, I roll it over and I contribute After tax into 401k Post meeting IRS contribution limits for deducting from my gross, and my company even matches my after tax contribution...it's almost there..just can't bypass plan rules.

@@nickstone7834 Doesn't really make sense to me. Though i only keep 100% roth funds in my 401k and ira's. I don't keep tax deferred funds (traditional 401k or traditional ira) at all. Did they say 'Pro Rata rule'? Employer 401k matching contributions are placed in 401k pre-tax accounts. I believe you have to convert an equal percentage of pre-tax 401k funds to 401k roth. Or roll an equal percentage of pre-tax 401k funds to a pre-tax IRA at the time of the conversion from 401k after-tax to 401k roth. For instance, if you have $40k in after-tax funds and $100k in 401k pre-tax funds, and you want to do an in-plan conversion of $30k in after-tax funds to 401k roth, thats 75% ratio of the after-tax funds. So to move $30k of after-tax to 401k roth when you have $100k in pre-tax 401k funds, you need to also convert 75% of the pre-tax 401k funds ($75k) to 401k roth, or roll 75% of the 401k pre-tax funds ($75k) to a pre-tax IRA. Might be wrong here. I am no expert when it comes to non-roth funds. Traditional pre-tax 401k and ira's are worthless to me and i avoid them at all costs unless the employer is matching. And if the employer is matching, i'm converting those employer matched funds to roth immediately.

@@eric3434 I am guessing if all you're money is in after tax 401k and ROTH, then you have no need to get your taxable income down. Are you self employed? For me, I need to lower my taxable income by the IRS Limits, otherwise my tax obligation would simply be insane. I certainly see the value of ROTH's vs traditional..I just can't afford to have that much taken out after taxes. as for the equal amounts you mentioned, that's never raised it's head or that topic has not been mentioned. Like I said, I had bulk of retirement close to million just before pandemic; pre and post tax bundled but tracked. I told my plan admin, roll x amount into rollover and into my Roth..they did that.. I can always call plan administrators and ask..I made it pretty clear this past year I wanted to ONLY ROLL roth money into roth ira. No go they said. not part of your plan. And for the record plan also states I can only roll so much out of the 401k. as long as I am employed

​@@nickstone7834 I'd love to bring my taxable income down as much as i possibly can. But I use deductions/expenses or flat out stop generating taxable income altogether. Yes, i am self employed with a self directed solo 401k and trust fund. I use the mega backdoor 401k roth and IRA roth contributions. Roth is the only way forward with benefit. If you can gain only 8% on your funds every year for just 5 or 6 years, it outweighs the benefits of a 401k pre-tax imo. So i deal with it up front and just pay the tax. I can't benefit in receiving employer profit sharing contributions as I pay myself. But if i was receiving employer profit contributions from an employer, i would take them and just convert those funds to roth, or roll them to a pre-tax IRA and deal with it later down the road. I hear you about the burden of taxes. The insane level of taxation that we are subject to on earned income is agonizing. Its not a fair game to tax earners at these levels. I just sent a huge check to our IRS mafia myself. Than drank a bottle of hard alcohol to overcome the pain, but I ran out of alcohol a little short of achieving my goal. When you said the word 'Cherry Pick', I would bet your administrator is telling you her hands are tied because of the Pro-Rata rules. And if thats the case -> roll 100% of your 401k pre-tax to a pre-tax IRA together with an in-plan conversion of 100% of your after-tax to your roth 401k. From there you should be able to roll the roth 401k to your roth ira, or just keep it in the roth 401k. (I think) Or if they can't do that since your employers plan does not allow in-service rollovers, convert the pre-tax 401k to roth 401k and pay the tax. And an in-plan conversion of the after-tax 401k to 401k roth. If your employer has a restriction in the plan where the plan restricts you from in-service rollovers (rolling from pre-tax 401k to pre-tax ira, or from roth 401k to roth ira). Ask them if they would allow you to quit, take a vacation for a month then rehire you after your vacation. :) Or alternatively if they will modify the plan to support in-service rollovers. In-service rollovers are permitted by the IRS, so this issue is only a restriction of your employers plan.

Depends on your situation

Nope, not since you’re not working. I’m unaware even if you were working if the TSP has the same strategy.

Nope, you got stuck with your employer retirement plan

Absolutely

That’s what I do for my clients

No age limit just have to have enough earned income.

because you are going to do a Roth conversion :-)

If you make a deductible contribution to your IRA, then the Roth conversion is taxable. They wash each other out, so why do the paperwork for both the deduction and the conversion tax? Plus, there are income levels where even a deductible contribution isn't possible, so one solution fits all cases.

As long as you got no tax deduction from the contribution to the Trad IRA, there is no issue converting to Roth.

It’s worth it in the end depending on how long your time horizon is

Successful business owners

How would whether the money is pre-tax or after-tax help or hurt that position? The point is whether you want to pay taxes when you take it out not.

@@michaelrudolph7003 you pay taxes going in (after tax) so the savings are only on the gains. Good if you are 50 but minimal if you are 60.

Or if you want to get around mandatory draws later on that don’t apply to Roth IRAs.