Knowledge Base
Roth conversions, rollovers, contribution strategies, and the retirement account structures that optimize your tax position over a 40+ year horizon.
39 articles in this category — page 1 of 4
Canadian retirement accounts fall into a predictable hierarchy once your income crosses $175,000: the RRSP and TFSA remain essential, but they become the floor rather than the ceiling. At $500,000 in annual income, the 2024 RRSP contribution limit of $31,560 represents roughly 6.3% of gross earnings
The short answer: 457(b) plans are technically non-qualified deferred compensation plans under the tax code, not qualified plans under IRC Section 401(a). That distinction carries real consequences for creditor protection, rollover rules, and early withdrawal flexibility. For high-income earners alr
The best way to withdraw from retirement accounts at the $5M+ level is not a single method but a sequenced, tax-optimized strategy that accounts for your specific account mix, time horizon, and marginal rate exposure. Get the sequence right and you can realistically save seven figures in lifetime ta
The 414h retirement plan is a tax-deferral mechanism available exclusively to state and local government employees. Named after IRC Section 414(h), it authorizes a governmental employer to "pick up" required pension contributions on behalf of employees, excluding those amounts from federal gross inc
The short answer: no. IRAs are definitively not qualified retirement plans under the Internal Revenue Code or ERISA. This is not a gray area. Qualified plans are defined under IRC Section 401(a) and require employer sponsorship, nondiscrimination testing, and ERISA fiduciary compliance. IRAs are gov
The backdoor Roth IRA is a two-step conversion that lets high-income earners access Roth tax treatment after they've been phased out of direct contributions. In 2024, the Roth IRA phase-out starts at $146,000 for single filers and $230,000 for married filing jointly. If you're reading this, you clea
A Roth deferral 401(k) lets you contribute after-tax dollars to an employer-sponsored retirement plan, with qualified withdrawals coming out completely tax-free. For high earners, this matters more than the standard advice suggests: unlike a Roth IRA, there are no income phase-out limits on Roth 401
The short answer: not directly. Capital losses in your taxable accounts do not reduce the ordinary income created by a Roth conversion dollar-for-dollar. A $200,000 conversion creates $200,000 of ordinary income regardless of how many losses you've harvested that year. What capital losses *can* do i
For most people reading this, the roth ira vs money market comparison isn't really a competition. One is a tax-sheltered growth vehicle; the other is a cash management tool. But the nuances matter enormously at the $5M+ level, where tax drag compounds quietly into seven-figure losses and the standar
The Schwab Solo Roth 401(k) lets self-employed individuals contribute up to $69,000 annually in 2024 ($76,500 with catch-up contributions) while sheltering all future growth from taxation. For someone earning $300K+ from self-employment, this is one of the highest-leverage tax tools available. But S
The phrase "annuity to Roth IRA conversion" is used loosely in financial planning circles, and that looseness creates real problems. A non-qualified annuity cannot be directly transferred into a Roth IRA under any IRS provision. A qualified annuity held inside a traditional IRA can be converted, but
The Nationwide IUL Accumulator II is a permanent life insurance policy that credits interest based on index performance, offers a 0% floor against losses, and allows tax-deferred cash value accumulation. For the right buyer, it can serve a legitimate role in a sophisticated estate or retirement inco