Episode 298 - To Roth or Not To Roth Part 2

In this episode of Beer and Money, Alex Collins discusses various strategies for contributing to Roth accounts, including Roth IRAs, Roth 401ks, backdoor Roths, municipal bonds, and permanent life insurance. He emphasizes the importance of consulting with tax professionals and understanding individual circumstances when choosing the best strategy for tax-free growth and withdrawals.

Check out our website:  beerandmoney.net

For a quick assessment of your current financial life go to: https://www.livingbalancesheet.com/lbsVision/lite/RyanBurklo

Takeaways

• Roth accounts use after-tax dollars for contributions.
• Roth IRA contribution limits are $7,000 per person per year.
• Income limits apply for Roth IRA contributions.
• Roth 401k options are increasingly common in employer plans.
• Conversions from traditional to Roth accounts incur taxes.
• Municipal bonds offer tax-exempt income but vary by state.
• Permanent life insurance can provide tax-free access to cash value.
• Consulting a tax advisor is crucial for these strategies.
• Understanding individual financial situations is key to choosing strategies.
• A combination of strategies may be the best approach.

 

Chapters

00:00 Introduction to Roth Strategies
02:25 Exploring Roth IRA Contributions
04:14 Understanding Roth 401k Options
06:54 Utilizing Municipal Bonds for Tax Benefits
08:15 Permanent Life Insurance as a Roth Strategy