Thank you for going into the weeds on this one. Even if people don't watch it as much, it is super valuable to anyone who is contemplating these strategies.
Holy crap - I've read about, spoken with advisors about, and even avoided triggering the pro rata rule personally, but never fully understood it. Thank y'all for explaining it so clearly. It finally clicked!
Important clarification that you can use the HSA to pay for qualified medical expenses from previous years but these expenses must have been incurred after the date when you first opened and contributed to your HSA. For example, if you opened your HSA in 2022, you cannot use it to pay for expenses incurred before 2022. However you can use it in 2035 to pay for expenses incurred at any time from 2022 and later.
Definitely watch the Form 8606 if you are doing backdoor IRA - even if you use a tax preparer. As a tax pro I can say that you really have to mess with the software to get the 8606 to come out correctly. Less experienced preparers may just enter in the Forms 1099-R and end up with the $7K as fully taxable income. (FYI - I have done amended returns for this issue.)
I personally love having a limited FHSA + HSA. It’s for the reason Brian mentioned plus using the limited FHSA allows me to use pretax dollars to pay for dental and vision expenses without having to touch my invested assents in my HSA or paying out of pocket.
At 19:10 you don’t need to move the earnings of the after-tax contribution to a Trad IRA. You can just rollover the contribution and earnings to the Roth and then you will have to pay taxes only on the earnings. That is why it is best to do the rollover to the Roth ASAP after you make the after-tax contribution to avoid accruing any earnings. Alternatively, you can do the after-tax contributions to a stable fund within the 401k so that it does not have gains before you rollover to the Roth but this is not necessary if you can roll it over immediately after the contribution. This avoids having to put the earnings in a Trad IRA which would affect a “regular Backdoor Roth contribution” due to he pro-rata rule. Note that this pro-rata rule from having a Trad IRA does not affect monies that are rolled over from a 401k as is the case for the Mega Backdoor IRA strategy.
Back door roth terrifies me, but this helped a lot. I have to prepare to utilize it starting next year. (as long as our household raises go up the same as this year.)
It's super easy, just do trad, wait till it clears in a day or two, then convert. The hardest part is remembering to log in again. If you're with Vanguard or Fidelity the conversion is like 5 clicks. I started doing it before I had to just in case my income unexpectedly increased that year and it's really not much additional work except at tax time. Google white coat investor backdoor roth for detailed tax filing instructions complete with screenshots. I refer back to that every year!
How does the Money Guy team feel about the fact that much of the stock market is arguably overheated with record high P/E ratios on the S&P 500? Companies like Vanguard have reduced their long-term rate of equity returns to the 6%s, so are 8-10% returns still reasonable long-term equity return assumptions?
They always undercut the rate of return so when it beats the projection they look great. Look at the long term track record and don’t listen to stupid financial projections. Investing is for the very long term
As a person later in his career, I have struggled with the benefit of an HSA. Seems to be a no brainer for a younger person who is in good health. But for an older person with increasing doctor visits, the better non HSA plan that covers more with less deductibles, combined with the FSA (to cover co pays pre tax) seems to be the better solution. I still feel like I'm missing out on some magical tax savings.. but with the forecasting and administrative overhead, I question if this savings is worth it.
Jumping in early to hopefully get my question heard! Help! I’m bored with the FOO! I’m 25, making 86k annually and am currently on step 3 and 4 of the FOO. I’m saving right under 20% (including emp. match) in my 401k and a Roth IRA, having another 10% go to student loans (principal is 36k and interest at 8%) and want so badly to do anything else with my army of dollars. I understand as well as believe in the FOO and want to abide by it, but I’m going to be stuck on these steps for a couple years and I feel bored and in a rut. Any advice on how to avoid boredom or feeling a lack of progression when going through a less than exciting financial phase? Thanks!
Howdy! If you don't already, make a simple amortization schedule for your student loans, being at 8% that is 100% high interest debt and paying it down should be a priority after your employer match. Once you have that schedule you can see "if I pay minimum payments in month X I should hit 90% principal left and at month Y I should hit 80%. This is motivating by itself because you should see it taking fewer and fewer months between the 10% increments. Additionally, have another line that is your "actuals" that show your actual balance in each month to hopefully show you are ahead of schedule. What I liked to do it reward myself with a fun night out every time I hit another increment of 10% paid off. Hope this helps
I’m 24 and it feels like things will take yearssssss! But that’s the process, so all I can do is try to increase my income to the best of my abilities and cut back where possible. Idk where you live but perhaps you might have too high of a lifestyle for what you might be trying to achieve. I make $52,000 in CA and am able to save 25% gross. I would look towards cutting back on things to help you pay off the student loans faster since that’s high interest debt. Cause you have a very good income for our age range. And I believe in you, you got this. Just be patient and watch your army grow and work harder as time passes.
It’s like being bored of brushing your teeth, you have to do it anyway, automate your investments and then it’s less work than even brushing your teeth I plan to only change my investment allocations every December 1st (after max contributions for following year are put out in November) and do a net worth statement every January Do what works for you but once you automate it’s as simple as not doing anything crazy like buying stuff you really shouldn’t yet, like Dave Ramsey says, “live like no one else so later you can live and give like nobody else”
What would you recommend for a couple mid to late 30's trying to play catch up for retirement? We have roth ira's that we are on track to fully fund this year, and company match 401k, but this wont be enough. What other investment pathways can we look into?
Thank you for that bit about the year end distributions, I was thankfully in the ETF versions when Vanguard did their big distributions but this explanation was fantastic. I'm to the point where the year end distros are becoming annoying even with ETFs so this was very helpful. Can we get more of the advanced stuff like this please and ty? I'm assuming I can use this strategy by tax lot on just the more recent stuff since most of my holdings have larger gains at this point, but still every little helps.
I guess I lucked out a bit with my employer. Our 401k dollars are 100% vested from day 1, for 6% I put in they put in 9.5%, and they put the entire deductible of our HDHP into our HSA at the beginning of the year, so $3200 free money into my HSA. They also offer a 50% discount for our premiums if we have a certain number of workouts in a given year. Not bad. They just don’t do the in service roll overs out of the plan to a Roth IRA. Nothings perfect.
If you don’t have in-service rollovers but you can still make after-tax (non-Roth) contributions, then you will still be able to roll those over to a Roth IRA after you leave that employer. You may have to pay taxes on any earnings gained up to that point from those contributions, unless you can separate the earnings and roll them over to a Trad IRA. It’s still worth it if you don’t mind having to wait until after you separate from service to roll them out, at which time you will probably have to rollover all the funds out, as they will likely not allow you to rollover only the after-tax monies, but you can segregate the pre-tax monies to a Trad IRA, and the after-tax and Roth monies to a Roth IRA.
You can use the Limited FSA for both dental and vision, and in most cases also for other qualified medical expenses that were incurred after you have met the deductible of your medical plan.
After listening to you guys for while, I find the title of this episode Hilarious. I’ve heard so many IUL salesman say this. Maybe that was the point though! Definitely made me click on the video to hear your take 😂
Its not that you can’t, but you would have to track your pretax basis. For prorata. Its not illegal nor wrong to have a pretax basis when doing a backdoor just messy.
This is going to be a different bull market. With AMS28K coming to scene. Ben basing off previous speculative markets. I can see 300,000 next bull run.🎉🎉🎉🎉🎉
I heard that ETFs don't have to pass on the embedded gains like Mutual Funds, which is why I only hold mutual funds in tax-deferred accounts and ETFs in taxable accounts. Is that correct? Also, do Mutual Funds have actual cost of when you buy it, or is it an average cost (Making tax-loss harvesting harder)?
ETF's are not required to pay out capital gain distributions and generally don't. Mutual funds certainly have a cost basis, cause how else would you figure out your taxes if you sell? IMHO Mutual funds are obsolete.
@@animeboi3939 for cost basis, i meant "actual cost" as in tax lots based on when you buy based on NAV on the day, or is it aggregated into one average cost basis?
Hello, around 30:25 you mention using losses to offset 3k of ordinary income from your losses. I am an Accounting student and I thought it was 3k that could be used to offset the Capital Gains in the future. I am just confirming information. I love the content!
You can use any amount without limit to offset capital gains. ST will first offset ST and LT will offset LT. Then any remaining losses of one type can offset any remaining gains of the other type. Once all your gains have been offset, if you have any losses left, either LT or ST, you can use up to 3k of losses to offset regular income. If you have more than 3k left in losses, the remaining losses after you offset 3k of income will be carried over to the next tax year.
Amazing content!! I was actually considering moving my roll over IRA into my current employers 401k as they allow that, and then starting to use the back door Roth strategy. This has me thinking on the bullet - "Are you 100% sure" and curious if doing this is allowed.
A Roth is always better 1. Brake in case of emergency. 5 yrs after the Roth roll over u can take that cash out. No penalty no taxes. I have done it. 2. You can pick any ETFs in a Roth. A 401k u are limited to ur employers choices.
If your new 401k allows it and has good investment options with low fees/ERs, then yes, it’s worth it so that you can do regular Backdoor Roth IRA contributions. Many plans will allow you to take out the rollover funds out in a later year and roll it over to an IRA (in-service while you are still employed) if you decide that you no longer wish to do Backdoor Roths. You may even be able to convert (rollover out) a portion of those rollover funds each year out of the 401k and into your Roth IRA, but remember this would be taxable since those are still pre-tax dollars. Always read the plan document and double-check with the 401k custodian on what you can and cannot do as plans vary widely between different employers.
Capital Gains Avoidance -- So, yeah, don't hold mutual funds in your taxable brokerage account. ETFs are typically better. Management fees are usually lower too.
I love how at 0:44 Brian’s natural arm movements about there being a lot of information out there draw attention to the Millionaire Mission poster. BTW, I am enjoying the book!
Who does employer retirement audits? Noticed employer not putting in our retirement contributions on a timely fashion . Nothing was out in this year the first quarter . April was a contribution and nothing since . Should it be done monthly from the employer? I’ll reach out to payroll first to ask them . Thanks guys!!!!
Your summary plan document (SPD) should specify if the timing is something different than shortly after your paycheck. If it isn’t an employer matching contribution, it’s possible the timing could be different. We have a non-matching component of my employer’s plan that is contributed annually. However, if your employer is not financially stable and has a cash flow problem, they could be delaying their deposits for the employer contribution. I’d say that’s the exception rather than the rule though, and you should check how it is supposed to work before throwing out any accusations. Editing to add that I am obviously assuming you are talking about the employer contributions. If you are talking about your 401(k) contributions deducted from your paycheck not being deposited timely - within a week from your pay at the longest - then that is a major problem. There are laws that say those have to be made timely, and a company can’t hold onto them.
Yes that’s the problem . Our 4% that we contribute from our paychecks are not being applied to our 401 and Roth’s on a timely fashion . Seems to be months later . I think I’ll just reach out to payroll and ask them . Thanks for your reply!! 12:12
Do you gents have anything like a “Recommended Finance Management Professionals” list that you provide for those looking for counsel, but that don’t fall in the financial/asset range of your typical clientele?
Was it always the case that (in general) your income from a job was never enough, and investing (or starting a business, etc.) was the 'only' way of making 'enough' money? Seems crazy that even $100k/yr is only a catalyst to MAYBE making some money after a few decades.
You can pretty much get away with anything as long as you're not rebuying the same ticker. This is one real big advantage of index ETF's over individual stocks.
The pro-rata rule does not apply to mega Backdoor rollovers from a 401k. That is, it does not matter if you have funds in a Trad IRA when you do an in-service rollover of after-tax contributions from your 401k to your Roth IRA. Only the earnings from those contributions, if any, are taxable unless you move the earnings to the Trad IRA. The latter is not worth it if the earnings are so small that makes their tax negligible.
@@aprameyag4941 currently pre-tax. There is now a new reg that they will be able to put the match in Roth but custodians may take a while to implement if the employer decides to allow for that option in the near future.
I really think it comes down to how well you budget and track spending to determine how much you’re willing to invest and just stick that money into index funds after expenses are taken care of. I make videos showing people to budget and exactly how much to invest per their salary. My BUDGET TEMPLATE is available in my bio!
Edward Jones manages my Roth. I have a small amount of savings in a post tax Roth 401, I am going to convert that into my IRA the next time I meet with my advisor!
It’s so dumb that non-HDHP doesn’t have an HSA simply due to how the government wrote the laws. I wish someone would pay lobbyists to make HSAs available on any plan.
That means you have good health insurance! Congrats on that! I have a huge deductible so put aside $200/ month in an HSA, I don’t have that deductible type money loosely available, I would be so sad to go down in my savings!
AMS28K YES!!! My biggest bag is AMS28K.... I can see $5 to $7 in the next Bull Run, more if it is a strong run this cycle $8 to $9 💰💰💰💰 ... great video..
You said you think that a AMS28K will outperform btc. What makes you think this? Are there macoeco, technical, fundimental, or valuation reasons for this?
Has anyone ever told him it's "Cuarto" or "Cuarta"? And not "Cuatro"? Not sure why he uses a Spanish word for "the fourth" usually, but if he does he should at least pronounce it correctly :)
Probably one of the BEST episodes you've ever done. Bravo.
Thank you for going into the weeds on this one. Even if people don't watch it as much, it is super valuable to anyone who is contemplating these strategies.
Holy crap - I've read about, spoken with advisors about, and even avoided triggering the pro rata rule personally, but never fully understood it. Thank y'all for explaining it so clearly. It finally clicked!
One of these days, Bo isn't going to be "so excited", and it's going to be epic.
why?
Please add chapters ❤️
Important clarification that you can use the HSA to pay for qualified medical expenses from previous years but these expenses must have been incurred after the date when you first opened and contributed to your HSA. For example, if you opened your HSA in 2022, you cannot use it to pay for expenses incurred before 2022. However you can use it in 2035 to pay for expenses incurred at any time from 2022 and later.
What’s going on with the obvious spammers in these comments?
Definitely watch the Form 8606 if you are doing backdoor IRA - even if you use a tax preparer. As a tax pro I can say that you really have to mess with the software to get the 8606 to come out correctly. Less experienced preparers may just enter in the Forms 1099-R and end up with the $7K as fully taxable income. (FYI - I have done amended returns for this issue.)
You sound like an EA
This error happens all. The. Time. Even with professionals.
I personally love having a limited FHSA + HSA. It’s for the reason Brian mentioned plus using the limited FHSA allows me to use pretax dollars to pay for dental and vision expenses without having to touch my invested assents in my HSA or paying out of pocket.
I’m so grateful we have a HSA with a 100% match!
At 19:10 you don’t need to move the earnings of the after-tax contribution to a Trad IRA. You can just rollover the contribution and earnings to the Roth and then you will have to pay taxes only on the earnings. That is why it is best to do the rollover to the Roth ASAP after you make the after-tax contribution to avoid accruing any earnings. Alternatively, you can do the after-tax contributions to a stable fund within the 401k so that it does not have gains before you rollover to the Roth but this is not necessary if you can roll it over immediately after the contribution. This avoids having to put the earnings in a Trad IRA which would affect a “regular Backdoor Roth contribution” due to he pro-rata rule. Note that this pro-rata rule from having a Trad IRA does not affect monies that are rolled over from a 401k as is the case for the Mega Backdoor IRA strategy.
Got my copy of Millionaire Mission this week! Looking forward to reading it!
Back door roth terrifies me, but this helped a lot. I have to prepare to utilize it starting next year. (as long as our household raises go up the same as this year.)
It's super easy, just do trad, wait till it clears in a day or two, then convert. The hardest part is remembering to log in again. If you're with Vanguard or Fidelity the conversion is like 5 clicks. I started doing it before I had to just in case my income unexpectedly increased that year and it's really not much additional work except at tax time. Google white coat investor backdoor roth for detailed tax filing instructions complete with screenshots. I refer back to that every year!
How does the Money Guy team feel about the fact that much of the stock market is arguably overheated with record high P/E ratios on the S&P 500? Companies like Vanguard have reduced their long-term rate of equity returns to the 6%s, so are 8-10% returns still reasonable long-term equity return assumptions?
I use 5% real returns for a total world cap weighted fund
I go off of PWL Capital's forecasts in Canada, which forecast ~7% nominal returns on a diversified global stock portfolio.
Vanguard is always projecting low returns
@Zorlig That's a good point I hadn't thought of.
They always undercut the rate of return so when it beats the projection they look great. Look at the long term track record and don’t listen to stupid financial projections. Investing is for the very long term
Thank you so much for this video! My wife has been really nervous about Backdoor but I’m confident this video will help me convince ber
Got in at AMS28K at $1 but will be holding it till $50. Even at that price market cap is reasonable for its tech.
In addition to investing heavily in meme coins, the wealthy always utilize the infinite banking concept. 👍👍👍
s p a m
You deserve to lose your money to this pump n dump if you buy
No
Y’all are awesome! Thanks so much for all this information!!
This is a FANTASTIC video! Thank you!
4:09 Such a great explanation of the back door roth
Wow!!! Best, most helpful video! Thank you!!!
As a person later in his career, I have struggled with the benefit of an HSA. Seems to be a no brainer for a younger person who is in good health. But for an older person with increasing doctor visits, the better non HSA plan that covers more with less deductibles, combined with the FSA (to cover co pays pre tax) seems to be the better solution. I still feel like I'm missing out on some magical tax savings.. but with the forecasting and administrative overhead, I question if this savings is worth it.
Fantastic episode - loved it!
Jumping in early to hopefully get my question heard! Help! I’m bored with the FOO! I’m 25, making 86k annually and am currently on step 3 and 4 of the FOO. I’m saving right under 20% (including emp. match) in my 401k and a Roth IRA, having another 10% go to student loans (principal is 36k and interest at 8%) and want so badly to do anything else with my army of dollars. I understand as well as believe in the FOO and want to abide by it, but I’m going to be stuck on these steps for a couple years and I feel bored and in a rut. Any advice on how to avoid boredom or feeling a lack of progression when going through a less than exciting financial phase? Thanks!
Howdy! If you don't already, make a simple amortization schedule for your student loans, being at 8% that is 100% high interest debt and paying it down should be a priority after your employer match. Once you have that schedule you can see "if I pay minimum payments in month X I should hit 90% principal left and at month Y I should hit 80%. This is motivating by itself because you should see it taking fewer and fewer months between the 10% increments. Additionally, have another line that is your "actuals" that show your actual balance in each month to hopefully show you are ahead of schedule. What I liked to do it reward myself with a fun night out every time I hit another increment of 10% paid off. Hope this helps
They say wealth building is slow. Buckle up with the foo you’re in it for the long haul
Slowly stacking bricks is pretty boring but give it some time and you've built a castle.
I’m 24 and it feels like things will take yearssssss! But that’s the process, so all I can do is try to increase my income to the best of my abilities and cut back where possible. Idk where you live but perhaps you might have too high of a lifestyle for what you might be trying to achieve. I make $52,000 in CA and am able to save 25% gross. I would look towards cutting back on things to help you pay off the student loans faster since that’s high interest debt. Cause you have a very good income for our age range. And I believe in you, you got this. Just be patient and watch your army grow and work harder as time passes.
It’s like being bored of brushing your teeth, you have to do it anyway, automate your investments and then it’s less work than even brushing your teeth
I plan to only change my investment allocations every December 1st (after max contributions for following year are put out in November) and do a net worth statement every January
Do what works for you but once you automate it’s as simple as not doing anything crazy like buying stuff you really shouldn’t yet, like Dave Ramsey says, “live like no one else so later you can live and give like nobody else”
What would you recommend for a couple mid to late 30's trying to play catch up for retirement? We have roth ira's that we are on track to fully fund this year, and company match 401k, but this wont be enough. What other investment pathways can we look into?
Thank you for that bit about the year end distributions, I was thankfully in the ETF versions when Vanguard did their big distributions but this explanation was fantastic. I'm to the point where the year end distros are becoming annoying even with ETFs so this was very helpful. Can we get more of the advanced stuff like this please and ty? I'm assuming I can use this strategy by tax lot on just the more recent stuff since most of my holdings have larger gains at this point, but still every little helps.
I guess I lucked out a bit with my employer. Our 401k dollars are 100% vested from day 1, for 6% I put in they put in 9.5%, and they put the entire deductible of our HDHP into our HSA at the beginning of the year, so $3200 free money into my HSA. They also offer a 50% discount for our premiums if we have a certain number of workouts in a given year. Not bad. They just don’t do the in service roll overs out of the plan to a Roth IRA. Nothings perfect.
Which employer is this? I would gladly switch
If you don’t have in-service rollovers but you can still make after-tax (non-Roth) contributions, then you will still be able to roll those over to a Roth IRA after you leave that employer. You may have to pay taxes on any earnings gained up to that point from those contributions, unless you can separate the earnings and roll them over to a Trad IRA. It’s still worth it if you don’t mind having to wait until after you separate from service to roll them out, at which time you will probably have to rollover all the funds out, as they will likely not allow you to rollover only the after-tax monies, but you can segregate the pre-tax monies to a Trad IRA, and the after-tax and Roth monies to a Roth IRA.
You can use an FSA and have an HSA. You just can’t use it for medical but if you have kids in braces you can use it for dental
You can use the Limited FSA for both dental and vision, and in most cases also for other qualified medical expenses that were incurred after you have met the deductible of your medical plan.
It would be oh so helpful if you guys could cover retirement savings for entrepreneurs in one of your episodes.
so, If you do have an IRA from a previous 401k rollover, what do you do to make backdoor roths possible?
If bo is excited, im excited
We’ll be investing our HSA $$ after our deductible is covered! Should be next year! Stoked!
QQ - So, I have an old Rollover IRA acct that has ~$15k. Can I move that into a ROTH IRA or the max is $7k or I'm not qualified to? Pls explain.
U can convert it to Roth but it will be looked at if u made $15k and will have to pay taxes on it
After listening to you guys for while, I find the title of this episode Hilarious. I’ve heard so many IUL salesman say this. Maybe that was the point though! Definitely made me click on the video to hear your take 😂
Its not that you can’t, but you would have to track your pretax basis. For prorata. Its not illegal nor wrong to have a pretax basis when doing a backdoor just messy.
This is going to be a different bull market. With AMS28K coming to scene. Ben basing off previous speculative markets. I can see 300,000 next bull run.🎉🎉🎉🎉🎉
I heard that ETFs don't have to pass on the embedded gains like Mutual Funds, which is why I only hold mutual funds in tax-deferred accounts and ETFs in taxable accounts. Is that correct? Also, do Mutual Funds have actual cost of when you buy it, or is it an average cost (Making tax-loss harvesting harder)?
ETF's are not required to pay out capital gain distributions and generally don't. Mutual funds certainly have a cost basis, cause how else would you figure out your taxes if you sell? IMHO Mutual funds are obsolete.
@@animeboi3939 for cost basis, i meant "actual cost" as in tax lots based on when you buy based on NAV on the day, or is it aggregated into one average cost basis?
@@animeboi3939why are mutual funds obsolete?
Hello, around 30:25 you mention using losses to offset 3k of ordinary income from your losses. I am an Accounting student and I thought it was 3k that could be used to offset the Capital Gains in the future. I am just confirming information. I love the content!
You can use any amount without limit to offset capital gains. ST will first offset ST and LT will offset LT. Then any remaining losses of one type can offset any remaining gains of the other type. Once all your gains have been offset, if you have any losses left, either LT or ST, you can use up to 3k of losses to offset regular income. If you have more than 3k left in losses, the remaining losses after you offset 3k of income will be carried over to the next tax year.
Amazing content!! I was actually considering moving my roll over IRA into my current employers 401k as they allow that, and then starting to use the back door Roth strategy. This has me thinking on the bullet - "Are you 100% sure" and curious if doing this is allowed.
A Roth is always better 1. Brake in case of emergency. 5 yrs after the Roth roll over u can take that cash out. No penalty no taxes. I have done it. 2. You can pick any ETFs in a Roth. A 401k u are limited to ur employers choices.
If your new 401k allows it and has good investment options with low fees/ERs, then yes, it’s worth it so that you can do regular Backdoor Roth IRA contributions. Many plans will allow you to take out the rollover funds out in a later year and roll it over to an IRA (in-service while you are still employed) if you decide that you no longer wish to do Backdoor Roths. You may even be able to convert (rollover out) a portion of those rollover funds each year out of the 401k and into your Roth IRA, but remember this would be taxable since those are still pre-tax dollars. Always read the plan document and double-check with the 401k custodian on what you can and cannot do as plans vary widely between different employers.
Capital Gains Avoidance -- So, yeah, don't hold mutual funds in your taxable brokerage account. ETFs are typically better. Management fees are usually lower too.
Why would an employer NOT provide the after tax and in service conversion 401k benefit?
I love how at 0:44 Brian’s natural arm movements about there being a lot of information out there draw attention to the Millionaire Mission poster.
BTW, I am enjoying the book!
Who does employer retirement audits? Noticed employer not putting in our retirement contributions on a timely fashion .
Nothing was out in this year the first quarter . April was a contribution and nothing since .
Should it be done monthly from the employer?
I’ll reach out to payroll first to ask them . Thanks guys!!!!
Your summary plan document (SPD) should specify if the timing is something different than shortly after your paycheck. If it isn’t an employer matching contribution, it’s possible the timing could be different. We have a non-matching component of my employer’s plan that is contributed annually. However, if your employer is not financially stable and has a cash flow problem, they could be delaying their deposits for the employer contribution. I’d say that’s the exception rather than the rule though, and you should check how it is supposed to work before throwing out any accusations. Editing to add that I am obviously assuming you are talking about the employer contributions. If you are talking about your 401(k) contributions deducted from your paycheck not being deposited timely - within a week from your pay at the longest - then that is a major problem. There are laws that say those have to be made timely, and a company can’t hold onto them.
Yes that’s the problem . Our 4% that we contribute from our paychecks are not being applied to our 401 and Roth’s on a timely fashion . Seems to be months later .
I think I’ll just reach out to payroll and ask them .
Thanks for your reply!! 12:12
Ours was super late one month and something had gone wrong with the transaction and nobody noticed until I said something. Definitely ask!
Do you gents have anything like a “Recommended Finance Management Professionals” list that you provide for those looking for counsel, but that don’t fall in the financial/asset range of your typical clientele?
Was it always the case that (in general) your income from a job was never enough, and investing (or starting a business, etc.) was the 'only' way of making 'enough' money? Seems crazy that even $100k/yr is only a catalyst to MAYBE making some money after a few decades.
How much am I taxed after the $7,000 threshold of my ROTH?
In a Roth, you are taxed before you put the money in. So the $7000 has already been taxed
Are VOO (S&P500 ETF) and VTI (total market ETF) considered "substantially similar" according to the wash sale rule?
You can pretty much get away with anything as long as you're not rebuying the same ticker. This is one real big advantage of index ETF's over individual stocks.
Does the same back door rules and taxation apply for a 401k?
The pro-rata rule does not apply to mega Backdoor rollovers from a 401k. That is, it does not matter if you have funds in a Trad IRA when you do an in-service rollover of after-tax contributions from your 401k to your Roth IRA. Only the earnings from those contributions, if any, are taxable unless you move the earnings to the Trad IRA. The latter is not worth it if the earnings are so small that makes their tax negligible.
What if your spouse has a rollover IRA?
In which 401k bucket do the employer contribution fall?
Pre tax
@@aprameyag4941 currently pre-tax. There is now a new reg that they will be able to put the match in Roth but custodians may take a while to implement if the employer decides to allow for that option in the near future.
The money guy signed is a little high on the right
I really think it comes down to how well you budget and track spending to determine how much you’re willing to invest and just stick that money into index funds after expenses are taken care of. I make videos showing people to budget and exactly how much to invest per their salary. My BUDGET TEMPLATE is available in my bio!
This guy(me) cant use HSA because the insurance is so good.... oh well cant complain of too good insurance by employer...
Nvidia! Still not too late to ride that lighting!
Edward Jones manages my Roth. I have a small amount of savings in a post tax Roth 401, I am going to convert that into my IRA the next time I meet with my advisor!
Regarding investment strategies of the 1% - What advice would you give regarding investments where you have to be an "accredited investor"?
It’s so dumb that non-HDHP doesn’t have an HSA simply due to how the government wrote the laws. I wish someone would pay lobbyists to make HSAs available on any plan.
can you do a megabackdoor Roth IRA conversion in a 401A? Not a 401k but a 401a. Thanks
❤❤❤
This episode made me even more confused lol ugh
Just saw your videos and bought AMS28K yesterday.....its up 24% today talk about timing......Thanks
I make 40k a year and can’t do an hsa. Guess I’ll just listen for fun lol
That means you have good health insurance! Congrats on that! I have a huge deductible so put aside $200/ month in an HSA, I don’t have that deductible type money loosely available, I would be so sad to go down in my savings!
Dang, the one percent went up to 13.7 million just in the last couple of years?!
Do it. AMS28K already in my bags. I had a AMS28K after ( your should I buy ) and I agreed and bought. I'm looking to stack more, too.
😂😂😂😂😂😂😂❤❤❤❤🎉😮😮
what's up with the illuminate/free mason video cover?
: )
I’m buying more Primetime token!!!
AMS28K wins! Utility and superior speed, I’m all in! 🚀🚀🚀 GO AMS28K!
My favorite AI plays are Primetime token and Fetch
AMS28K YES!!! My biggest bag is AMS28K.... I can see $5 to $7 in the next Bull Run, more if it is a strong run this cycle $8 to $9 💰💰💰💰 ... great video..
You said you think that a AMS28K will outperform btc. What makes you think this? Are there macoeco, technical, fundimental, or valuation reasons for this?
Primetime token best pick for AI this bullrun for sure, about to do a quick 30x right now
I'm flavoured, $22k every week! I can now give back to the local in my community and also support God's work and the church. God bless America.
what are you doing for 22k a week and how can i do this?
Has anyone ever told him it's "Cuarto" or "Cuarta"? And not "Cuatro"? Not sure why he uses a Spanish word for "the fourth" usually, but if he does he should at least pronounce it correctly :)
Who says it's Spanish? Maybe he's speaking Portuguese or Italian without rolling the r. 😉
@@jdp486I believe it's the same in both Portuguese and Italian no? "Quarto" for fourth. And quatro/quattro for the number 4.
Primetime token is gonna 100x minimum 🚀
Primetime token roadmap looks promising with innovative features planned.
AMS28K and Sauce Turbo will be huge.
AMS28K going up like crazy! Pick up around 0.67 and now it’s hit $1! I wish i had bought more!😂😂😂
Primetime token will make millionaires. We’re still early!
Primetime token will melt faces 🦍
I am very bullish on Primetime token. $50 in 2024!!
Forget Shiba and Dogecoin. The next Bull runner gonna be AMS28K
AMS28K is one you don’t wanna sleep on
I believe AMS28K will conservatively hit $70.00 by 2025. That's a 20x return from it's current price with very little downside. I'm buying all I can.
Primetime token will fly, 10$ will be nothing once momentum starts. easy 50x.
I expect AMS28K to over take ethereum in market cap in 1 cycle
You should buy ETH and AMS28K if you care about your future
Don’t sleep on Primetime token, something special coming
AMS28K will be one of the biggest projects in the future. 2024 will be on fire 🎉
Does anyone else refuse to do a backdoor Roth conversion because it feels sleazy?
No haha. Why would you intentionally give yourself less money if you don't have to through perfectly legal means?
Lol. No. Luv me the back door. Lol😂😂😂
I don't really care im buying slowly with money i don't need bought a little bit of AMS28K and PEPE
Coinbase listing comming soon for Primetime token.
AMS28K 😅
Good news Primetime token will be added to Binance
If you are holding AMS28K and XRP ready for 20-50x
click bait
Clickbait?? On youtube??
1% use private placement life insurance and alternative assets, private equity, private credit
How is this clickbait?! They're literally right now going through the strategies the title suggests they would...
this comment is click bait
Primetime token is so bullish
Ride the bull with Primetime token , pre-sale ends soon!
I much prefer AMS28K , last bullrun ETH became unusable to many use cases due to its ridiculously high gas fees ??
Primetime token one of its kind don’t sleep on it. 🦍