Tax rules are made so complecated so that you have to hire a specialist for it. There is a big industry which only exists on the complexity of the tax code. Now the society in financial terms are divided in 3 group, 1st the poor who live on the tax, 2nd the middle class who pay the tax and 3rd the rich who create employment for the middle class so they can pay the tax. Goverment's job is to maintain this system.
Most tax rules for the every day person is easy to understand: Do you run your business at home? Deduct the price of the bedroom you use to conduct business (total_sqft * price/sqft) Did you have to do house repairs? Deduct the price of repairs Did you donate to a charity? Deduct the amount you donated Did you use your car for daily work? Duduct gas and maintenance. All of these have cut off points but it isnt hard to read tax law that applies to the average joe. The hard tax law comes when you: 1. Have multiple income streams 2. Own a business 3. Own many assets
I used to process roth conversions for an investment company that I worked for and I always wondered how the hell people were able to do this. Now I know.
@TheIvyLens I love people like you who are the literally the definition of consious incompetence and the inability to intuitively understand the theory of mind.
Tax evasion is legal and morally correct since you're not a slave, you have no obligation to pay any percentage of your time(and therefore wages/labor) to the government. The right to life and liberty cannot exist at the same time as the right for the government to garner your time, and therefore your life. Capital gains, sales tax, etcetera not included.
I always think of the richer people I worked for who would bitch and moan about people abusing food stamps, welfare, and medicare etc. While also making sure to avoid paying taxes on so many things. Laundering money through a "business" that didn't exsist.
Exactly why people get paid to help you. Generally, open one, any of them, and invest on an index fund like snp. Mutual funds allow you to buy fractional shares so dollar amount, however much you have, can be invested. Pls take note retirement accounts will penalize you if you take money before you are age 59 1/2 if it’s made with pretax contributions.
Let's remove some of that stress. In a nutshell, pay your taxes, keep your expenses as low as possible, and invest the money you don't spend. Save your emergency fund, then invest the rest. Different investment (crypto,stocks, real estate, business, etc) all have pros and cons and require different amount of work on your end. Pick the one the aligns best with your lifestyle and risk tolerance. No one knows the future but the ones who ended up coming out on top will be the first to tell you that their method was the right method.😊
The first step to building wealth is figuring out your goaIs and risk toIerance - either on your own or with the heIp of a financiaI pIanner, and foIIowing through with an inteIIigent pIan, you wiII gain financiaI growth over the years and enjoy the benefits of managing your money.
I am fortunate I made productive decisions that changed my finances (gathered over 1M in 2years) through my financiaI planner. Got my 2nd house in Feb, and hoping to retire soon. Give this a try and attain good-returns.
Ah yes, the classic I'm going to put on makeup in front of you to make this feel like a normal conversation and I'm just a regular person who does regular things
1. Step 1, they paid the taxes on 7,000, because they did not claim the tax benefit. Here it depends on their earnings, so I'm assuming they're making more than $161k. Otherwise, just put it in a Roth IRA to begin with. 2. Step 2, they paid the taxes again on 7,000 to move it from traditional to Roth. This part may or may not be at a high tax rate depending on their income. 3. Money put into a ROTH is taxed. It's the gains coming out that's not taxed. So if you put in $7,000 and your account is worth $70,000 when you retire, you paid taxes on the $7,000 but not the $63,000 in gains when you take it out. 4. Of course, if the money investment is a loss, then you paid taxes on all of it.
Now I understand. I thought you’d want to not pay taxes UNTIL AFTER you retire and you tax levels are less. It depends on if you mark a lot on the Roth IRA or not
@@digimom82you’ll be taxed on a much larger amount because you’ll be on a different tax bracket and taxes will more than likely go up, not down. Pay what you can upfront, not later.
I love listening to your advice even though it doesn't apply to me. Im in Taiwan and about to move to South Africa. Im anxious af but your voice soothes me. Just bought your book btw
What she doesnt say is that for this to work, you have to have an empty IRA account. I rolled my old 401ks into my personal Ira and due to me having pre-tax money in my IRA, if i would to try to backdoor now that I am married and no longer qualify for a ROTH, i would have to pay taxes based on what percentage of my IRA is pre-tax vs post-tax. Due to this, if I were to backdoor this year’s contribution, I would trigger hundreds or thousands of dollars in taxes. I bought her book hoping it would go over this info but it didnt!! I still had to scour the interwebs to figure it out smh.
You need to speak to your team of professionals ( Tax strategists, CPA, etc.) Use books for general information and your team for your personal situation.
Correct, you need to not have money in any IRAs otherwise you're hit with the Pro-rata rule. That said, you can also roll your IRA into your current employer's 401K... if they allow it. This can allow you do do the backdoor roth conversion free and clear.
She did mention paying taxes once it’s rolled over. Money out into a Roth IRA is always taxed on the front end so it’s tax free when you take a distribution. There’s no way around that bc Uncle Sam always gets his $
In Australia, people tend to make contributions superannuation (IRA in the US) 2 ways, pre-tax and post-tax. I've seen people put 330k in their account and they do not get taxed on it unless a person asks to make a claim on it (which is 15% per pre-tax payment taxes or we call it contributions tax). It's a pretty neat way to put a lot of money on your retirement funds and encourages members to use the system if they know it well enough, even to triple it knowing they cannot contribute to the fund for the next 3 financial years. Not a lot of people know how retirement funds work, there needs to be an education about it. It's also a good way to save and be less tempted to take money out of the funds because it is a complicated system to take money out of the superannuation.
@@Death_the_Kid I think you're starting in the wrong spot. You, and everyone else, should do what you can to protect your money. It's a key element to being self-sufficient. 🙏
@@ko7772 I appreciate how much you care, but there was no indication I wasn't 😂 You should talk to people who think it's morally wrong to avoid taxes 💀 tell them it's okay 😗
Yep and any investment income will also be tax free. Amazing. But you must do the traditional contribution and the conversion in the same calendar year.
I'm sure you explained it fine, but I think I'm missing something. So traditional you don't pay the taxes until you receive the money in retirement right? And in this case you dont invest any of the money [like a savings/ checking account] and then you roll over the money once a year into a ROTH and invest it then? Or am I completely wrong and got something swapped?
You are correct. An IRA account is usually a tax-deferred account. This means you put money in (contribution) pre-taxed and when you pull the money out (withdrawal) you pay taxes on whatever you take out. When the contribution is claimed on your tax return, it reduces your taxable income by the contribution amount in the year that it was contributed. For the backdoor roth you are not claiming a tax deferral on the contribution. Hence your contribution is post-tax/after tax. You then roll over that amount into a Roth IRA since you already paid the taxes on it. The trouble some people run into is when they already have tax deferred money in an IRA, or they contributed money to the IRA and invested it, then the investment grew before they did the conversion to a Roth IRA. They then have a mix of pre and post tax dollars and will be hit with the pro-rata rule. The pro-rata rule prevents you from converting just the money you contributed post-tax. You'll be forced to convert the mix and that mix will depend on the ratio of pre and post tax money across all tax deferred accounts. So if the split is 50% pre and 50% post, you'll pay taxes on 50% of whatever amount is converted. It's important to know that it doesn't matter if you open a new IRA. The fed looks at money across all accounts. This is why you don't want to have an IRA before you start the backdoor conversion. It's also not the end of the world if you don' to a backdoor roth. It's not as good but investing the money in a regular brokerage account still has its benefits for long term capital gains, but those dividends can get you. Hence the leaky bucket.
Just look up backdoor ROTH. 401K providers will tell you to do traditional but that's because they get a percentage of the balance. Open a Roth IRA outside your company, transfer your 401k funds to it. If you have a match from the employer you want a traditional to get the match then convert to roth.
If you need the money don't need a Roth you can have a traditional and use the money tax free for other things like medical expense or move money into other investments
If you want people to trust you, you need to be trustworthy. That is not breaking rules, It is working within the rules. When they did not take the tax deductions that they were entitled to in the first year, that is how they earned that advantage or later.
Your multi tasking is next level. I am out in these streets trying to figure out why I am in the kitchen holding a towel in one hand and a tennis racket in the other. And I don't even play tennis! Why am I here? What did I come in here for? Send help!
oh yes. one of my son's classmates' moms was complaining about mortgage laws. She wanted a rental property but didn't want to put the mandated 20% down as it wasn't their primary residence, "so we just added my husband to the lease." oh, and they were also sending their son to school in a diffrent district by borrowing a family member's address. I should've just kicked her out of my house right then.
But presumably, the idea of an IRA is that you put the contribution in pretax while you are more than likely in a higher tax bracket now, so you can take it out later when you are in a lower tax bracket in retirement, no?
Wrong. They report the contribution to the ira as non deductible. Then when they convert to a roth the distribution from the ira is not taxable as they have basis.
No, you can convert your Traditional IRA to a Roth IRA. (Keep in mind that this creates a taxable event.) I've never heard of anyone rolling an IRA to a 401k. I doubt that is even possible. People do roll 401ks to their IRA, typically when they leave a job or retire. You can generally roll an old 401k into a new one (if you leave one job and get another).
Thia is an ad for ola Plex and all the other brands. Look at how shes purposefully showing thenbrands and even has a hard time with putting the dripper back
Yeah I was wondering why she was doing all that stuff to her face while making the video. It was distracting but now after you said it, she is holdig her hands under some of the products to guide peoples eyes to them. How sinister!
If you have a 401k match it is. If you want to own their company inside a roth they do. Anyone that hold stocks does this. Why would you pay .ore tax???
I mean I’m not rich so I guess it’s fine that I just contribute directly to a Roth IRA but I guess this is good to know in case I suddenly stop working in non profits for a job that pays well
I need a start a step by step. Because last yr I just made 165k. And I honestly did not know this. I also, did not realize I made so much until the end of the yr. Because my pay and hours very by contract.
😂 if your explanation for how you’re going going to be “rich” entails saving a few thousand dollars your definition of “rich” is waaaay different than mine!
Except you don't want to do that b/c, if you're "rich", you're likely in the highest tax bracket & you'll be in a lower bracket when you're ready to take the money out.
I used to work with a bunch of Rich guy engineers. And they would complain about illegal immigrants not paying for taxes. Then they would tell me tricks and tips on how I could not pay taxes like get a dog and claim he's security and open a business doing whatever claim a closet in my house an office right off my car and clothes. .. bro....
Beside money tip i noticed you didnt apply enough sunscreen. The right amount is around 2 fingers long, lookup 1 video you’ll find people explaining it throughly ❤
I enjoy your content but what I don't get is if people are behaving legally and acting in accordance with th law why are you making it sound like they are actually doing something immoral or skirting around the system? What are those people supposed to do with their money? Let it sit in a Wels Fargo savings account? What is your recommendation? Should they do legal things with their money or illegal things?
It makes me nervous how the FIRE crowd treat the backdoor IRA as their sole means of taking profits early. Any loopholes that get too popular get shut down.
Imagining that anyone is ‘finding ways to break’ the rules, and not that those rules were specifically written to benefit those who already have money.
I’m reading a book called ‘Taxtopia’ which is about how the rich bend tax rules
Woah
*work WITHIN the tax rules.
Those rules are available to you as well, just gotta put yourself in the position to leverage them.
Many of the more complicated tax laws are for the rich to protect or pad their assets.
@@thatindinkid I’m not that level of wealthy for it to be worth it 😬
Vivian just got paid for 6 or 7 product placements right before our eye$. Beauty influencing without being a beauty influencer.
Woah! I didn't even notice till I watched it back!!
Tax rules are made so complecated so that you have to hire a specialist for it. There is a big industry which only exists on the complexity of the tax code. Now the society in financial terms are divided in 3 group, 1st the poor who live on the tax, 2nd the middle class who pay the tax and 3rd the rich who create employment for the middle class so they can pay the tax. Goverment's job is to maintain this system.
We must maintain the agenda 😎🇺🇲🇺🇲🇺🇲
oh if only that was how the system actually functioned
Most tax rules for the every day person is easy to understand:
Do you run your business at home? Deduct the price of the bedroom you use to conduct business (total_sqft * price/sqft)
Did you have to do house repairs? Deduct the price of repairs
Did you donate to a charity? Deduct the amount you donated
Did you use your car for daily work? Duduct gas and maintenance.
All of these have cut off points but it isnt hard to read tax law that applies to the average joe. The hard tax law comes when you:
1. Have multiple income streams
2. Own a business
3. Own many assets
Still the top 1% pay 40% of all taxes
Most poor people *think* they are middle class. The percentage of your tax dollars that goes to social programs is so terribly miniscule.
I used to process roth conversions for an investment company that I worked for and I always wondered how the hell people were able to do this. Now I know.
Wow . . . Literally a simple google search would have done the trick
@@TheIvyLensIf you know what you're even doing in the first place. You don't go looking for sht you don't know.
@TheIvyLens I love people like you who are the literally the definition of consious incompetence and the inability to intuitively understand the theory of mind.
Tax evasion is illegal. Tax avoidance is encouraged.
Tax evasion is legal and morally correct since you're not a slave, you have no obligation to pay any percentage of your time(and therefore wages/labor) to the government. The right to life and liberty cannot exist at the same time as the right for the government to garner your time, and therefore your life. Capital gains, sales tax, etcetera not included.
@@I_Am_Empyrean Right on.
Not paying a 15% tax on the growth of $6000/year is not what makes rich people rich.
I always think of the richer people I worked for who would bitch and moan about people abusing food stamps, welfare, and medicare etc. While also making sure to avoid paying taxes on so many things. Laundering money through a "business" that didn't exsist.
I don’t understand anything about retirement and it stresses me out
don't worry, our planet is going to burn before we get even close to it, so you're good 😊
Exactly why people get paid to help you. Generally, open one, any of them, and invest on an index fund like snp. Mutual funds allow you to buy fractional shares so dollar amount, however much you have, can be invested. Pls take note retirement accounts will penalize you if you take money before you are age 59 1/2 if it’s made with pretax contributions.
@@Erundilmedoubtful but will it possibly burn when my kids are trying to retire? Possibly.
Let's remove some of that stress. In a nutshell, pay your taxes, keep your expenses as low as possible, and invest the money you don't spend.
Save your emergency fund, then invest the rest. Different investment (crypto,stocks, real estate, business, etc) all have pros and cons and require different amount of work on your end. Pick the one the aligns best with your lifestyle and risk tolerance. No one knows the future but the ones who ended up coming out on top will be the first to tell you that their method was the right method.😊
@@Erundilmelol this is funny af, let’s wait for the end together. I got my Hennessy.
“You won’t believe how I got rich”
The first step to building wealth is figuring out your goaIs and risk toIerance - either on your own or with the heIp of a financiaI pIanner, and foIIowing through with an inteIIigent pIan, you wiII gain financiaI growth over the years and enjoy the benefits of managing your money.
I am fortunate I made productive decisions that changed my finances (gathered over 1M in 2years) through my financiaI planner. Got my 2nd house in Feb, and hoping to retire soon. Give this a try and attain good-returns.
Get to her
FinanciaI-PIanner Rebecca Mart-Watson (in fuII)
Ah yes, the classic I'm going to put on makeup in front of you to make this feel like a normal conversation and I'm just a regular person who does regular things
DO NOT TOUCH YOUR SKIN WITH THE DROPPER!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!
It’s for the content sweetie it’s not that deep
What's wrong with her eyes?
Right. Not qorth cross contaminating just for content...sweetie @@KingKikikoi
Uhh how bad is that?! I do that sometimes when I'm rushing?! 😬😬
@@dmm1648 you don't want to do that because bacteria and gunk on your face.
1. Step 1, they paid the taxes on 7,000, because they did not claim the tax benefit. Here it depends on their earnings, so I'm assuming they're making more than $161k. Otherwise, just put it in a Roth IRA to begin with.
2. Step 2, they paid the taxes again on 7,000 to move it from traditional to Roth. This part may or may not be at a high tax rate depending on their income.
3. Money put into a ROTH is taxed. It's the gains coming out that's not taxed. So if you put in $7,000 and your account is worth $70,000 when you retire, you paid taxes on the $7,000 but not the $63,000 in gains when you take it out.
4. Of course, if the money investment is a loss, then you paid taxes on all of it.
Thank you for bringing this down to my level
Now I understand. I thought you’d want to not pay taxes UNTIL AFTER you retire and you tax levels are less. It depends on if you mark a lot on the Roth IRA or not
@@digimom82you’ll be taxed on a much larger amount because you’ll be on a different tax bracket and taxes will more than likely go up, not down. Pay what you can upfront, not later.
Step 2 is wrong. They don't pay any tax on the conversion because their basis in the IRA equals the withdrawal (since it was put in post tax).
@@dustinmitchell4711yep, was gonna comment this. The money is NOT double taxed if you do it right.
If I had that kind of money I wouldn't of needed to watch this video...
Now I need to make that kind of money....lol
I love listening to your advice even though it doesn't apply to me. Im in Taiwan and about to move to South Africa. Im anxious af but your voice soothes me.
Just bought your book btw
What she doesnt say is that for this to work, you have to have an empty IRA account.
I rolled my old 401ks into my personal Ira and due to me having pre-tax money in my IRA, if i would to try to backdoor now that I am married and no longer qualify for a ROTH, i would have to pay taxes based on what percentage of my IRA is pre-tax vs post-tax.
Due to this, if I were to backdoor this year’s contribution, I would trigger hundreds or thousands of dollars in taxes.
I bought her book hoping it would go over this info but it didnt!! I still had to scour the interwebs to figure it out smh.
Because everyone’s situation is different, I always go to a tax professional to get advice.
Don't rely on youtubers for actual in depth financial advice lol
You need to speak to your team of professionals ( Tax strategists, CPA, etc.) Use books for general information and your team for your personal situation.
Correct, you need to not have money in any IRAs otherwise you're hit with the Pro-rata rule. That said, you can also roll your IRA into your current employer's 401K... if they allow it. This can allow you do do the backdoor roth conversion free and clear.
She did mention paying taxes once it’s rolled over. Money out into a Roth IRA is always taxed on the front end so it’s tax free when you take a distribution. There’s no way around that bc Uncle Sam always gets his $
Ngl at this point I’ve stopped caring about anything
In Australia, people tend to make contributions superannuation (IRA in the US) 2 ways, pre-tax and post-tax. I've seen people put 330k in their account and they do not get taxed on it unless a person asks to make a claim on it (which is 15% per pre-tax payment taxes or we call it contributions tax).
It's a pretty neat way to put a lot of money on your retirement funds and encourages members to use the system if they know it well enough, even to triple it knowing they cannot contribute to the fund for the next 3 financial years. Not a lot of people know how retirement funds work, there needs to be an education about it. It's also a good way to save and be less tempted to take money out of the funds because it is a complicated system to take money out of the superannuation.
That's not correct.
So the rule wasn’t broken, merely followed and executed correctly.
Yes but telling the audience that wouldn’t make for an interesting video
Used to be a 529 workaround too but that got nerfed.
Really? What was it?
Honest, I did let this play a few times but at the beginning almost skipped it thinking it was a makeup tutorial 😂😂😂
Rich people "break rules." Proceeds to explain legal method for converting IRA.
That's the whole point, they make it legal. There's always gonna be loopholes if it doesn't benefit someone
@@Death_the_Kid I think you're starting in the wrong spot. You, and everyone else, should do what you can to protect your money. It's a key element to being self-sufficient. 🙏
@@ko7772 I appreciate how much you care, but there was no indication I wasn't 😂 You should talk to people who think it's morally wrong to avoid taxes 💀 tell them it's okay 😗
We need rich rules for your Europe besties 😂❤
Is anyone else completely lost.. I'm definitely not financially illiterate but this went over ....
I’m 29 and have no idea what she just said I need to get my shit together.
If it's a legal rule..... they are not breaking anything.
Yep.
She can't describe a ROBS set up in a way people will understand.
Yep and any investment income will also be tax free. Amazing. But you must do the traditional contribution and the conversion in the same calendar year.
I need longer than 60 sec for this gem you dropped lol
I had a hard time concentrating on what you said because I kept wondering how much money you were spending on beauty products. LOL
I'm sure you explained it fine, but I think I'm missing something. So traditional you don't pay the taxes until you receive the money in retirement right? And in this case you dont invest any of the money [like a savings/ checking account] and then you roll over the money once a year into a ROTH and invest it then? Or am I completely wrong and got something swapped?
I have the same question
Which is why this particular short of hers confused me too. I have a finra series 6,7 and 63 and it confused me. I wasnt confused before she talked.
You are correct.
An IRA account is usually a tax-deferred account. This means you put money in (contribution) pre-taxed and when you pull the money out (withdrawal) you pay taxes on whatever you take out. When the contribution is claimed on your tax return, it reduces your taxable income by the contribution amount in the year that it was contributed.
For the backdoor roth you are not claiming a tax deferral on the contribution. Hence your contribution is post-tax/after tax. You then roll over that amount into a Roth IRA since you already paid the taxes on it.
The trouble some people run into is when they already have tax deferred money in an IRA, or they contributed money to the IRA and invested it, then the investment grew before they did the conversion to a Roth IRA. They then have a mix of pre and post tax dollars and will be hit with the pro-rata rule. The pro-rata rule prevents you from converting just the money you contributed post-tax. You'll be forced to convert the mix and that mix will depend on the ratio of pre and post tax money across all tax deferred accounts. So if the split is 50% pre and 50% post, you'll pay taxes on 50% of whatever amount is converted. It's important to know that it doesn't matter if you open a new IRA. The fed looks at money across all accounts. This is why you don't want to have an IRA before you start the backdoor conversion.
It's also not the end of the world if you don' to a backdoor roth. It's not as good but investing the money in a regular brokerage account still has its benefits for long term capital gains, but those dividends can get you. Hence the leaky bucket.
@@TheFirstRealChewythank you for the succinct explanation of the pro rata rule!
Just look up backdoor ROTH.
401K providers will tell you to do traditional but that's because they get a percentage of the balance.
Open a Roth IRA outside your company, transfer your 401k funds to it.
If you have a match from the employer you want a traditional to get the match then convert to roth.
Wow, Thank you so much, where can I hear more!
If you need the money don't need a Roth you can have a traditional and use the money tax free for other things like medical expense or move money into other investments
If you want people to trust you, you need to be trustworthy. That is not breaking rules, It is working within the rules. When they did not take the tax deductions that they were entitled to in the first year, that is how they earned that advantage or later.
Your multi tasking is next level. I am out in these streets trying to figure out why I am in the kitchen holding a towel in one hand and a tennis racket in the other. And I don't even play tennis! Why am I here? What did I come in here for? Send help!
It's all good those because lots of people can't even afford food
oh yes. one of my son's classmates' moms was complaining about mortgage laws. She wanted a rental property but didn't want to put the mandated 20% down as it wasn't their primary residence, "so we just added my husband to the lease." oh, and they were also sending their son to school in a diffrent district by borrowing a family member's address. I should've just kicked her out of my house right then.
Yeah government doing away with that backdoor
how many layers of spackle to get through the clip
Im trying to learn but i feel like stuff is just flying over my head. I guess i need to read more about this stuff
But presumably, the idea of an IRA is that you put the contribution in pretax while you are more than likely in a higher tax bracket now, so you can take it out later when you are in a lower tax bracket in retirement, no?
Correct. Because the money you save is the TOP bracket i.e. 22%. So in retirement the money starts at the bottom 0%
Wrong. They report the contribution to the ira as non deductible. Then when they convert to a roth the distribution from the ira is not taxable as they have basis.
great content but please reconsider the GRWM stuff.
More on this topic!
I’m tired of people like this calling it “breaking the rules” when it’s a loop hole everybody can use
This always overwhelmed me. I have a tradional IRA, a ROTH, and a 401k at work. Should i move my IRA's into the 401K???
NO.
No, you can convert your Traditional IRA to a Roth IRA. (Keep in mind that this creates a taxable event.)
I've never heard of anyone rolling an IRA to a 401k. I doubt that is even possible. People do roll 401ks to their IRA, typically when they leave a job or retire. You can generally roll an old 401k into a new one (if you leave one job and get another).
NO. 401k up to the match. Max the Roth. If you're in the 22%+ bracket then everything in the bracket to 401k.
Do you do this every year? How do they continue maxing their contributions in Roth?
Yes, do it every year your income is above the threshold
Thia is an ad for ola Plex and all the other brands. Look at how shes purposefully showing thenbrands and even has a hard time with putting the dripper back
Right?? Obvious ad what a scammer
Yeah I was wondering why she was doing all that stuff to her face while making the video. It was distracting but now after you said it, she is holdig her hands under some of the products to guide peoples eyes to them. How sinister!
She’s likely just showing what product she’s using (so people can go find it themselves) instead of pushing affiliate links for a commission.
As a multimillionaire i can confirm this is NOT how we invest our money and time.
If you have a 401k match it is.
If you want to own their company inside a roth they do.
Anyone that hold stocks does this.
Why would you pay .ore tax???
They don't break them. They find loopholes that haven't been closed. What they do is perfectly legal... to the letter.
Very true. Dealt with several this year, during tax season.
Only works if you do NOT have any other taxable IRAs
First thought that came to mind was magi on the trad ira she says to convert
Do you mean fmv instead of magi?
If anyone can do it, its not "rich" people, its "smart" people.
Anyone who earns that much should already know this.
I mean I’m not rich so I guess it’s fine that I just contribute directly to a Roth IRA but I guess this is good to know in case I suddenly stop working in non profits for a job that pays well
She actually believes using those cosmetics makes her look better! 😝😝😝😝
Would love to know your skin care routine I can't quite make out the labels they're backwards.
I need a start a step by step. Because last yr I just made 165k. And I honestly did not know this. I also, did not realize I made so much until the end of the yr. Because my pay and hours very by contract.
😂 if your explanation for how you’re going going to be “rich” entails saving a few thousand dollars your definition of “rich” is waaaay different than mine!
It's not breaking the rules if they are following them.
Even better if you're self employed. Solo 401k. You can put 66k into a roth.
Ty! Btw you’re so pretty
Beauty is definitely in the eye of the beholder.
I’m going to be honest I’m 25 and I have no idea what a Roth IRA is it all reeallly stresses me out lol
Yeah that's how they told us to do it for a massive one we have
Drop the link to the first product used pls!
I literally pay rent to my landlords daughters bank account and have the contract under her name so he can save on taxes
they are not breaking them, they are making them just for the poor xD it's a feature, not a bug
I need info about UK and how the system works.
I've heard of that but what I'm not clear on is if the law is you can't put money in a Roth then how is a Roth rollover even available to convert to?
Dearest Vivan your skin looks immaculate your husband is a lucky man any advice for the uk please
I just opened up a CD IRA. 😊
Wut is that?
How much to open an CD IRA?
Is it beneficial?
Tkx
Except you don't want to do that b/c, if you're "rich", you're likely in the highest tax bracket & you'll be in a lower bracket when you're ready to take the money out.
Only for a short while. Then the value of the accounts keeps going up.
How about "Smart People" 😂
That's just plain Smrt!😂
this is useful because i think in 2 years im gonna make too much to contribute
I used to work with a bunch of Rich guy engineers. And they would complain about illegal immigrants not paying for taxes. Then they would tell me tricks and tips on how I could not pay taxes like get a dog and claim he's security and open a business doing whatever claim a closet in my house an office right off my car and clothes. .. bro....
Wow, you know so much about this stuff
No RULES ARE BEING BROKEN. ANYONE CAN DO THIS
I’m laughing how yr advertising yr products, yr death grip on the Olaplaex brow cream,!😆
Did you realize the camera was on?
Lol, rich people are not doing this for their retirement for 20k ish a year. They just open a brokerage account and fund it.
Beside money tip i noticed you didnt apply enough sunscreen. The right amount is around 2 fingers long, lookup 1 video you’ll find people explaining it throughly ❤
Rich people don’t do this people in the middle class do this.
She is selling products without talking about that a bit. Pretty smart 😂
Is there a Canadian version of this?
I’m not “rich” and I have to use this method.
Self employed people can fund a SEP (IRA) and can contribute 20% of their income…up to $60,000 per year…tax deferred. That’s how real money accrues.
Good thing I don't have problems like that
Great video. Thank you.H
So, how about in Canada? 🙏🏼 We don't have Roth IRA...we have CPP...?
I enjoy your content but what I don't get is if people are behaving legally and acting in accordance with th law why are you making it sound like they are actually doing something immoral or skirting around the system? What are those people supposed to do with their money? Let it sit in a Wels Fargo savings account? What is your recommendation? Should they do legal things with their money or illegal things?
It makes me nervous how the FIRE crowd treat the backdoor IRA as their sole means of taking profits early. Any loopholes that get too popular get shut down.
Acceptable Accounting Procedures.
How do they get around FATCA?
I guess it's easy to find when people make videos about it...
It definitely helps when you're the ones writing the laws!
Geez..I didn't understand how that worked
Stop listening to "your rich BFF" and find a great CPA or a fiduciary financial planner.
I’m really appreciate it your great contents every time 🎉my BFF
Can you talk about transferring your 401k
Into a Roth. Is it also ref as back door Roth.
Imagining that anyone is ‘finding ways to break’ the rules, and not that those rules were specifically written to benefit those who already have money.
Can you contribute to an already established IRA if salary jumps into the 161 range.
What about the earning of the initial fund converted to roth IRA? Is that tax free too?
If i make enough that I cant get a rothIRA, I think im good without having one lol