Taxes & IRAs


Find treasure in your tax buckets!

Chances are, you're not planning for those retirement years as strategically as you need to be, when it comes to shifting income into lower brackets and making sure you don't get taxed at the highest brackets.

Watch this video for more about retirement income strategies, and Roth conversions specifically.

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Intro to Roth Conversions


In this video, we'll discuss retirement investment planning, specifically, Roth IRA conversions. Understanding Roth conversions should be a part of any financial investment planning you undertake.

Some specific areas we'll cover:

-- where does Roth conversion planning fit

-- ensuring tax free benefits

-- how to do a Roth conversion

-- traditional IRA to Roth conversion

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Self-Directed Investing


Welcome to self directed investing! In this video, we'll cover topics like:

-- retirement investment planning

-- retirement income strategies

-- self-directed investments

-- IRA explained

-- 401k explained

-- unrelated business income tax (UBIT)

-- unrelated debt financed income (UDFI)

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ProPublica Tax Series Update

ira retirement taxes Aug 11, 2021

A couple of weeks ago, ProPublica released an update on the story it first ran about Roth IRAs and Peter Thiel's $5B Roth account.  (We released articles here on this blog on June 30 and July 14 on this story, as well.)  Their latest article focused on Congress' desire to investigate the issue and the perceived abuses of the law, triggered by the revelation that approximately 28,000 Americans have $5M or more in their Roth or traditional IRA.

Here's an excerpt from the article:

"Roth IRAs were established in 1997 to incentivize middle-class Americans to save for retirement. Congress imposed strict limits, including a cap on how much can be contributed to the accounts each year, which today stands at $6,000 for most Americans. The average Roth account was worth $39,108 at the end of 2018.

But a select set of the ultrawealthy have managed to get around limits set by Congress and transformed the vehicle into a powerful onshore tax shelter. One way they’ve done that is...

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Do You Know About Roth IRA Conversions?

For those of you who’ve been following the ProPublica series on taxes and the wealthy class in America, you would have likely seen the article that dropped last week about Peter Thiel and his $5 billion Roth IRA.  You also probably thought, “how the heck can he do that?” 

In short, Thiel assigned a very low value to his shares of PayPal stock in the late 1990’s, placed them into a Roth at a total valuation under $2000, then watched as the company went public and was eventually acquired by eBay.  His IRA value exploded commensurately, and is now worth around $5B.  A debate could be had about whether this was an appropriate use of a Roth in the first place, but that’s for another discussion.

You might then ask, “what does this have to do with me, Manish?”  Well, the answer lies in another part of the article that discusses Roth IRA conversions.  Check out this excerpt from the article:

“[A Roth IRA...

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IRA Withdrawal Planning Can Save on Taxes

ira retirement taxes Dec 28, 2020

Article Highlights:

  • Early Distributions
  • Distributions After Age 59½
  • Minimum Required Distributions After Age 72
  • Excess Accumulation Penalty
  • Estate Tax Issues

Advance planning can, in many cases, minimize or even avoid taxes on IRA distributions and other qualified plan distributions. When contemplating future retirement and when to begin tapping taxable IRA and other qualified retirement accounts, taxpayers need to consider a number of important issues. 

Early Distributions (before 59½) - If funds are withdrawn before the taxpayer reaches age 59½, the distribution is subject to a 10% early withdrawal penalty (and state penalties, if applicable) in addition to income taxes, unless what is referred to as the substantially equal payment exemption is utilized.  Under this exception, an early retiree can begin taking substantially equal payments at least once a year over their projected lifetime or the joint lives of themself and a designated...

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