Setting up a Backdoor Roth can be confusing, so I thought I’d put together a tutorial on the Backdoor Roth IRA steps people can refer to when they go through this process. Let’s get started.   What Is a Backdoor Roth IRA? Despite it’s name a Backdoor Roth IRA is not an account, it is a process with two steps: ...

Just because you are self-employed doesn’t mean you don’t have options to save for retirement. Here’s a rundown of the best retirement options for self-employed workers.   Retirement Accounts for the Self-Employed There are many advantages to being self-employed when it comes to saving for retirement. As an independent contractor (ie, paid on a 1099 instead of a W-2), you ...

Q. I am tired of practicing. I want to retire early. I have done a good job saving and investing and am stepping that up so I can have enough by age 55 to support my needed retirement income. How can I get to my money without paying the 10 percent penalty for withdrawing before age 59½? A. Many doctors ...

If you inherited retirement accounts or anticipate leaving retirement accounts to your heirs, it is important to understand the rules and options for managing those retirement accounts. This will help you use that inherited money wisely but also make good decisions in your estate planning. We discuss what the rules and options are plus which accounts are the best to ...

[Editor’s Note: Today’s guest post is from Konstantin Litovsky, a long-time WCI partner and an expert in designing low-cost small practice retirement plans.] Much of the information available on the internet and on WCI covers individual or ‘solo’ 401(k) plans. Not a lot is written about Employee Retirement Income Security Act (ERISA) 401(k) plans where in addition to owners (who ...

[Editor’s Note: I recently interviewed CEO Don Wenner of DLP Capital Partners, on our YouTube channel discussing private real estate investing and DLP funds open to White Coat Investors. DLP is a preferred partner of the White Coat Investor and a company that I personally invest with. If you’re interested in private real estate, you’ll find lots to learn from ...

WCI is ten years old this Spring and we’re now on our third 401(k). It’s been a long and winding road. Our first 401(k) was a simple, cookie-cutter Vanguard Individual 401(k). And when I say “our”, I mean “my”, since I was the only one working here and the only one contributing to it. It certainly served my purposes. When ...

Podcast #194 Show Notes: The Backdoor Roth IRA Made Easy Everyone should be contributing to a Roth IRA every year. This is retirement account space that you can’t get back. Many of us need to contribute to the Roth IRA through the backdoor, which can be confusing. In this episode, we discuss what a backdoor Roth IRA is, steps for ...

[Editor’s Note 1/23/2020: This popular backdoor Roth IRA post has been updated with 2019/2020 contribution limits where possible. However, take notice that the video and Form 8606 were created in 2017 and contain contribution limits for that year. The process of filling out the form is still the same regardless of how future contribution rates change so I’ve left them ...

A Roth IRA has a lot of advantages with regards to investing, tax reduction, asset protection, and estate planning.  Even high-earners should be grateful to Senator William Roth, who was the sponsor of the legislation that established them back in the 1990s. The Basics of Roth IRAs Contribution Limits Anyone with earned income can open a Roth IRA and contribute ...

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