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Googled "backdoor Roth" late at night and closed the tab more confused than when you started? This one's for you.

Jessica and Brandon go one step past the basic Roth IRA to unpack the backdoor Roth, the mega backdoor Roth, and Roth conversions. Jessica asks the questions you're already thinking (including why the IRS makes this so complicated), and Brandon explains the one rule social media almost never mentions, plus the move he uses with clients to get around it.

In this episode:

• Who can't contribute to a Roth IRA directly, and what to do instead
• The backdoor Roth, step by step
• The pro rata rule and how to avoid a surprise tax bill
• The mega backdoor Roth and the two plan features you need
• Roth conversions: brackets, timing, and who pays the tax
• The five year rule on converted dollars

EPISODE CORRECTIONS:

• Pro rata rule: a one time tax bill, NOT ongoing penalties.
  Ongoing penalty: 6% per year for over contributing to an IRA,
  until you remove the excess.
• RMDs now start at 73, or 75 if you were born in 1960 or later.
  Roth IRAs have no RMDs.

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Money, relationships, and the mindset to master both. Hosted by financial advisor Brandon and his wife Jessica, The Sugar Daddy Podcast breaks down how to build wealth, unpack old money beliefs, and have real conversations...