Mega Backdoor Roth Conversion 5-Year Rule and Bond Investing - 451

Your Money, Your Wealth

Should Jim in New Jersey do the YMYW-infamous Megatron (the Mega Backdoor Roth IRA) or use his Roth 401(k) - and how can he keep bonds out of his Roth accounts? Joe and Big Al discuss the January first start date when it comes to the 5-year rule on Roth conversions for Nancy in Wisconsin, and they spitball on those Roth clocks for withdrawals and tax-efficient investments for Johnny Mercer in Savannah, GA, who also wants to know the pros and cons of bonds vs. bond funds vs. CDs. Plus, should Brad in St. Louis incorporate bonds into his investment portfolio, given the fact that he will have pensions and Social Security providing 5 streams of fixed income in retirement?

Timestamps:

• 00:58 - The Megatron: Mega Backdoor Roth IRA vs. Roth 401(k) (Jim, NJ)
• 14:42 - 5-Year Rule on Roth Conversions: How Does January First Default Start Date Apply? (Nancy, WI)
• 19:43 - 5-Year Rule on Roth Conversions vs. Tax-Efficient Investments, Bond Funds Vs. Bonds Vs. CDs (Johnny Mercer, Savannah, GA)
• 32:42 - What’s the Best Strategy for Incorporating Bonds into Our Retirement Portfolio? (Brad, St. Louis)
• 40:09 - The Derails

Access this week's free financial resources in the podcast show notes at https://bit.ly/ymyw-451

• Complete Roth Papers Package - includes the Roth Basics Guide, the 5-Year Rules for Roth IRA Withdrawals, and the Ultimate Guide to Roth IRAs
• 10 Steps to Improve Investing Success
• Investing Basics Guide
• Episode Transcript
• Ask Joe & Big Al On Air for your Retirement Spitball Analysis