MWA Ep. 23: How Roth IRAs Work

Wondering how Roth IRAs give you a tax advantage? Curious about non-retirement uses like college and buying a home? How Roth IRAs even work? This episode dives deep into the strategic advantages of Roth IRAs and their role in preparing you for your financial future.

For working professionals, navigating retirement planning is critical. This episode reveals how Roth IRAs can be pivotal tools in your financial arsenal, offering benefits beyond retirement savings. Whether you’re a young investor or a high earner, understanding the nuances of Roth IRAs can lead to significant long-term gains.

Join host Matt Nelson, CFP®, Managing Partner at Perspective 6 Group, and Jacob LaRue, CFP®, Head of Financial Planning, as they discuss the most effective strategies for optimizing Roth IRAs. Discover how these accounts can be leveraged not just for retirement, but also for estate planning, emergency funds, and even home purchases.

Key Highlights for How Roth IRAs Work:

• Roth IRA Basics:
  • Learn how Roth IRAs differ from traditional retirement accounts, with after-tax contributions and tax-free withdrawals in retirement
• Strategic Contributions:
  • Explore optimal strategies based on your lifetime tax bracket and income fluctuations to decide between Roth and traditional IRAs
• High Earner Strategies:
  • Learn about Backdoor and Mega Backdoor Roth IRAs, designed to help high-income earners maximize their savings into retirement
• Estate Planning:
  • Discover the benefits of using Roth IRAs in estate planning, including tax-free inheritance and the absence of required minimum distributions
• Non-Retirement Benefits:
  • Uncover how Roth IRAs can fund emergencies, facilitate home purchases, and reallocate excess 529 plan funds for education
• And much more!

Resources:

• What is a Roth IRA for Kids? | Charles Schwab
• Should I Contribute To My Roth IRA Vs. Traditional IRA? – Flowchart
• Can I Make a Mega Backdoor Roth Conversion? – Flowchart
• Can I Make A 529 To Roth Transfer? – Flowchart

Listen Now!

Apple Podcasts → https://bit.ly/3GGW1Da

Spotify → https://bit.ly/3TofDDW

About Matthew Nelson

Matt has over 20 years of experience in the financial services industry. He is passionate about helping MedTech professionals maximize their benefits, reduce their taxes, and plan for financial freedom. As the Founder, Managing Partner, and Senior Financial Advisor at Perspective 6 Group, he leads a team of dedicated professionals. The team provides comprehensive and personalized financial planning and investment management services to our clients.

As a CERTIFIED FINANCIAL PLANNER™ (CFP®), Accredited Investment Fiduciary® (AIF®), and Equity Compensation Associate (ECA) Matt specializes in helping our clients navigate the complex and evolving landscape of equity compensation, financial independence, portfolio management, and income tax minimization. Further, he leverages his experience as a private equity investor at Focus Financial Network, Inc., to offer strategic insights and guidance on business succession, valuation, and exit planning. Matt’s mission is to empower our clients to achieve their financial and personal goals with confidence and clarity.