Thanks for another great summary article. I am collecting these as great educational tools. Here's hoping the proposed legislation does not eliminate conversions, but is good to know the possibility is there so we can evaluate actions this year.
Your stuff is always great, Daniel. You’re a fantastic addition to the money guy team and I look forward to your content, it is clear, concise, and comprehensive. Keep up the great work!
If backdoor and Mega backdoor is banned, should I continue with the after tax 401k or IRA? Any other tax free savings you recommend, I know a lot of insurance agents are trilled about this to push for CV insurance products.
The proposed legislation would prohibit after-tax employee contributions in qualified plans, regardless of income. Without the ability to convert after-tax IRA contributions to Roth, building after-tax IRA assets isn't as appealing. HSAs are great if you have a high-deductible health plan, and self-employed retirement plans if you have any self-employment income. I'm working on an article comparing equity-indexed life insurance to investing in the market. Even with VERY generous assumptions, it's difficult for permanent insurance to stack up against investing in the market.
Thanks for another great summary article. I am collecting these as great educational tools. Here's hoping the proposed legislation does not eliminate conversions, but is good to know the possibility is there so we can evaluate actions this year.
Your stuff is always great, Daniel. You’re a fantastic addition to the money guy team and I look forward to your content, it is clear, concise, and comprehensive. Keep up the great work!
Thanks so much John!
If backdoor and Mega backdoor is banned, should I continue with the after tax 401k or IRA? Any other tax free savings you recommend, I know a lot of insurance agents are trilled about this to push for CV insurance products.
The proposed legislation would prohibit after-tax employee contributions in qualified plans, regardless of income. Without the ability to convert after-tax IRA contributions to Roth, building after-tax IRA assets isn't as appealing. HSAs are great if you have a high-deductible health plan, and self-employed retirement plans if you have any self-employment income. I'm working on an article comparing equity-indexed life insurance to investing in the market. Even with VERY generous assumptions, it's difficult for permanent insurance to stack up against investing in the market.
Thanks Daniel. Yes, I maxed out DC FSA, HSA, 401k (including after tax) already, look forward to your episode on IUL