Backdoor Roth IRA Pro Rata Rule Explained

Backdoor Roth IRA Pro Rata Rule Explained

By Travis Sickle, CFP®, EA® | May 10, 2022

The Pro Rata Rule is required when you convert a traditional retirement plan, whole or in part, to a Roth IRA and the traditional IRA has both aftertax and pretax money. The premise of the pro rata rule is to prevent higher-income earners from taking advantage of the backdoor Roth conversion without incurring additional taxes.…

2022 Roth IRA Contribution & Income Limits

By Travis Sickle, CFP®, EA® | May 4, 2022

Roth IRA + Traditional IRA Contribution Limits 2022 IRA + Catchup Contribution 2021 2022 Roth IRA $6,000 $6,000 Roth IRA Age 50+ $7,000 $7,000 Traditional IRA $6,000 $6,000 Traditional IRA Age 50+ $7,000 $7,000 Roth IRA Income Limits Filing Status 2021 Roth IRA Income Range 2022 Roth IRA Income Range Single $125,000-$140,000 $129,000-$144,000 Married Filing…

Can you do a Roth conversion with stocks?

By Travis Sickle, CFP®, EA® | March 30, 2022

The Roth conversion can be done in a few different ways.  The Roth IRA conversion I’m talking about here is moving stocks, bonds, ETFs, or mutual funds from the traditional IRA to the Roth IRA. While you can move property such as stocks from the traditional IRA to the Roth IRA there are a few…

How to start planning for retirement at age 25

By Travis Sickle, CFP®, EA® | March 15, 2022

In this post, I’m talking about how to start planning for retirement at age 25. So if you’re starting your retirement planning.  We have you covered. And if you’re looking for the basics in retirement planning, you’ve come to the right place. Table of Contents Why Age 25? Age 25 is a starting point. It’s…

Roth IRA Excess Contribution to tax free Recharacterization then Backdoor Roth Conversion

Roth IRA Excess Contribution to tax-free Recharacterization then Backdoor Roth Conversion

By Travis Sickle, CFP®, EA® | March 10, 2022

Full Transcript In this video, I’m going to talk about a Roth excess contribution being recharacterized back to the traditional side as a nondeductible contribution and then back to the Roth with a backdoor Roth conversion. What’s going on, guys? Welcome back to the channel or if this is your first time at our channel…

Can a 1099 independent contractor have a Solo 401(k)?

By Travis Sickle, CFP®, EA® | October 4, 2021

The short answer is yes and it depends. First, let’s clarify who we’re talking about here.  If you are earning money as a side hustle, independent contractor, 1099, sole proprietor, or schedule C filers which are really all the same thing, you may be eligible based on these types of income to contribute to a…

Fidelity Retirement Trends Q2 2021

By Travis Sickle, CFP®, EA® | August 20, 2021

The fidelity report shows how much people are saving in their retirement accounts. These retirement trends are broken down into 401k and 403b accounts, noted as DC Plans, and IRA’s which include Roth and Traditional IRA retirement plans. Even with the pandemic, economic and financial changes fidelity points out that, “Q2 2021 participants continued to…

Roth IRA Explained in 60 seconds

The Roth IRA Explained in 60 seconds

By Travis Sickle, CFP®, EA® | August 11, 2021

The Roth IRA is an after-tax retirement planning account that grows tax-deferred and comes out tax-free in retirement. The youtube video quickly shows the income and contribution limits for the Roth IRA and a quick example of a Roth IRA contribution phaseout. The Roth IRA explained in 60 seconds the Roth IRA for 2021 is…

Vanguard takes on the FIRE movement with updates to the 4% rule

By Travis Sickle, CFP®, EA® | August 3, 2021

In this video I’m talking about Vanguard taking on the FIRE movement with updates to the 4% rule. If you want to retire early or retire by 40 this video is for you. Vanguard uses a new dynamic spending strategy to help increase your likelihood of retiring early. By retiring early your retirement can increase…

How to calculate and fix excess Roth IRA contributions

By Travis Sickle, CFP®, EA® | April 14, 2021

How to fix excess Roth IRA contributions with a step-by-step worksheet.