Joe Anderson
ABOUT Joseph

As CEO and President, Joe Anderson has created a unique, ambitious business model utilizing advanced service, training, sales, and marketing strategies to grow Pure Financial Advisors into the trustworthy, client-focused company it is today. Pure Financial, a Registered Investment Advisor (RIA), was ranked 15 out of 100 top ETF Power Users by RIA channel (2023), was [...]

Alan Clopine

Alan Clopine is the Executive Chairman of Pure Financial Advisors, LLC (Pure). He has been an executive leader of the Company for over a decade, including CFO, CEO, and Chairman. Alan joined the firm in 2008, about one year after it was established. In his tenure at Pure, the firm has grown from approximately $50 [...]

Published On
October 27, 2020

What is the MEGA backdoor Roth IRA conversion and should you do one? How do you create retirement income for the gap between retiring at 66 and taking Social Security at 70 and RMDs at 72? Joe and Big Al also answer a question on the taxation of an overseas inheritance, and they discuss your comments.

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Show Notes

  • (00:53) Roth Conversion or Retirement Income in Gap Years?
  • (07:01) Mega Backdoor Roth IRA Conversion
  • (17:42) Mega Backdoor Roth IRA Conversion
  • (24:46) Taxation on Overseas Inheritance?
  • (30:47) Comment: FIRE YMYW TV Episode
  • (32:20) Comment: Don’t Call it the Backdoor Roth Show

Free resources:

SPECIAL OFFER BOOK | Ignore the Hype: Financial Strategies Beyond the Media-Driven Mayhem  (*limited time only!)

READ THE BLOG | Backdoor Roth IRA Conversion: Use It While You Still Can

LISTEN | YMYW PODCAST #295: All About the Backdoor Roth IRA Strategy

LISTEN | YMYW PODCAST #293: Backdoor Roth Conversions and Investing for Kids

LISTEN | YMYW PODCAST #289: Backdoor Roth IRA Conversions, Stimulus and Self-Employed Retirement

READ THE BLOG | Decision 2020: Your Vote and Your Money

Listen to today’s podcast episode on YouTube:


Today on Your Money, Your Wealth®, you keep asking questions about the backdoor Roth IRA, so Joe and Big Al keep answering! This week your questions are about the MEGA backdoor Roth IRA and how to create retirement income for the gap between retiring at 66 and taking Social Security at 70 and RMDs at 72. We’ve also got a question on the taxation of an overseas inheritance, as well as your comments. Do us a favor, click the link in the description of today’s episode in your podcast app and go to the show notes. Click the Ask Joe and Al On Air banner and send in your questions about Social Security benefits, portfolio diversification, asset location, estate planning, how much you can spend in retirement – anything money related! In the meantime, backdoor Roths it is! I’m producer Andi Last, and here are the hosts of Your Money, Your Wealth®, Joe Anderson, CFP® and Big Al Clopine, CPA.

Roth Conversion or Retirement Income in Gap Years?

Joe: Michael from Sioux Falls. He goes “You guys rock. Greetings from South Dakota. While retirement looming, I decided to start listening to podcasts over the past year and I’ve listened to many before going to my favorite, YMYW.” Well, thank you very much Michael from Sioux Falls, South Dakota. “I’m 63, married, wife 61, and plan on retiring in about 3 years. Over the past 3 years, I’ve been a government employee thus have the TSP and by the time of retirement, it should be about $250,000 plus; saving about $40,000 a year. Up until now, I’ve been accumulating after listening to many, have come to the decision to wait until RMD at age 72 to take my Social Security benefits. Thus I realized that I need income for the gap years. Our only debt is our home of $125,000; annual combined income is $250,000 and we have $65,000 in cash. All of our other retirement income is in an IRA at $1,600,000 and my wife has a Roth IRA of $200,000. This year did a Roth conversion from my wife of $100,000 which pushes us up towards the higher end of the 24% tax bracket. My tentative plans are to continue to push the 24% tax bracket at least through 2025 which would then be my IRA for extra tax $24,000 dollars annually. I’m also trying to accumulate some cash along the way. I have also considered using my TSP money for gap income. Any ideas for Roth conversions or creating the income for the gap years? Should I siphon gas for a part-time job in retirement?” Remember that whack job?

Andi: Somebody has been listening.

Al: Yeah, that was- what episode was that?

Joe: I don’t know.

Andi: A long time ago.

Joe: He was like yeah I get free gas.

Andi: Yeah.

Joe: Like what the hell? “My wife will provide some income, $1000 a month when I hit retirement but I will be jobless. Feel free to stop by. We always have some Coors Lite and other liquid delights in the fridge.” See? You know you love a Midwestern- South Dakota. Got a nice little Coors Latte in the fridge.

Al: Probably got a refrig in the garage. Just for-

Joe:  Guaranteed. Guaranteed. Without question that thing is full of beer.

Andi: And a pool table.

Joe: I don’t know about a pool table. We call it the Minnesota Room you know. Every party you ever have is in the garage.

Al: There’s one person I know in San Diego that has a refrigerator in their garage. Besides you Joe.

Joe: Who doesn’t- you don’t have a fridge in your garage?

Al: No. My brother Todd. He’s got one too and it’s always filled with beer.

Joe: If you don’t have a fridge in your garage I don’t even know who you are.

Al: I park both my cars in the garage, can’t fit a fridge.

Joe: I don’t think I’d- I don’t know. I think that’s a deal-breaker for me Al.

Al: Well I wasn’t proposing to you. So it doesn’t matter.

Joe: That’s the first thing I look at if I go to someone new’s house, I go to the garage and look for the beer fridge.

Al: Got it.

Joe: But yeah- I have a refrigerator in my garage, full of beer. So stop by any time.

Al: I know, I’ve been in it.

Joe: Yes, I know you have.

Andi: It’s a walk-in fridge apparently.

Al: There’s plenty of Coors Lite. I do remember that.

Joe: Michael, we’re missing- thank you very much for all the information. Appreciate you being part of the YMYW family. But Al, we’re kind of missing a key component here in figuring out his dilemma. But I don’t know what he’s spending. That’s the problem.

Al: We’re missing some facts. But I’ll give a general answer here. Which is I like the idea of converting into the 24% bracket, that makes sense in many cases. I don’t know enough Michael, about your situation to know if that’s a great idea or not. But I like the idea of getting a lot of money to the Roth because you get a lot of money in the IRA and TSP. Continue doing that, when you retire, pull money out of your IRA or TSP to live. And then still convert up into whatever tax bracket makes sense for you. You can still convert, even though you’re pulling money out for living. And then at age 70, you get Social Security, 72 RMD. So yeah I think that the concept’s fine.

Joe: So he’s 63, he’s going to retire at 66. So the gap here is 66 to age 70. RMDs start at 72. So he’s got 4 years of a gap year and he’s got $65,000 in cash and $125,000 remaining in debt. So the debt is pretty low but he doesn’t have a lot of non-qualifying assets because everything’s in a retirement account. It’s jam-packed, a couple of million bucks that retirement plus another few hundred thousand in Roth and he’s like I want to do some conversions, I’m going to have a couple of extra bucks. But what’s the gap years? We don’t know. I mean how much money is he spending? If it’s $50,000 versus $200,000, those are two different numbers that our advice might be a little bit different.

Al: Right. But the concept-

Joe: The concept’s solid. I’m with ya. But one thing too, Michael, is like if you’re going to convert in the 24% just go to the top of the 24%, it’s a giant bracket. I don’t know why you wouldn’t just convert to the top of it. It’s like yeah we’re converting into some of it. Well, if you’re gonna pay 24% tax and if tax rates are going to go up and you believe that, you’ve got $2,000,000 in a retirement account. Why not maximize the bracket?

Al: But he’s only got $65,000 cash so he’s got to pay the tax somehow too.

Joe: But he makes $200,000 a year. He lives in South Dakota.

Al: You’re saying there’s some extra there?

Joe: I don’t know. Listen that the beer fridge is like jammed.

Al: It’s loaded.

Joe: It’s just loaded. I’m going to have to go to South Dakota for sure.

Mega Backdoor Roth IRA Conversion

Joe: Larry, from Simi Valley, California. “Dear Al and Joe. I’ve been listening to your podcasts and been totally enthralled with some of the insights on your Roth IRAs.” Totally enthralled Al. Just totally into it.

Al: I’m not sure I would describe our discussions in that manner but I appreciate it, Larry.

Andi: It’s the beer fridges that do it.

Joe: If I ever have to talk about a Roth IRA ever again I’ll slit my wrists.

Al: Just go into your beer fridge. You’ll be fine. Take one before the show.

Joe: Might have to, moving forward. What about last week? That guy’s like ‘I’m going to switch it up so you guys don’t have to talk about a Backdoor Roth’ and the answer was exactly that.

Al: Backdoor Roth. It’s like how do we not talk about it? That was your question.

Joe: “I’ve made many poor choices along the way and I’m seeking your sage advice.” See I learned that word ‘sage’ advice from the show too.

Al: You did?

Joe: Yes. Because I had to read it and I didn’t know what it meant at first. Then I realized that we give really good advice.

Al: According to who? You?

Joe: According to Larry from Simi Valley. So he writes on. He goes “I’m in the 24% tax bracket and I just opened up a Backdoor Roth conversion.” Imagine that. Here we go.

Al: Here we go.

Joe: He’s 58 years old. “I believe in prior podcasts you stated that the maximum you can put in a Mega Conversion Backdoor Roth is $63,000.” Should we pause there?

Al: Yeah.

Joe: A Mega Conversion Backdoor- we like to call that the Garage Door. So to qualify for the Barndoor, you’d need to have a certain type of retirement account.

Al: Yes.

Joe: So can you explain the defined contribution limitations, Alan?

Al: Sure. If you’re like- well let’s just start with the 401(k) because that’s what most people have. It could apply to 403(b) and others, but 401(k) if you are under 50, that’s $57,000. That’s the maximum that can go into the 401(k) and that includes your contributions and your employer match and your employer’s profit sharing contribution. If they make one. Now there’s a fourth thing. Some plans allow you to- if you don’t get to that $57,000 you can put your own money in pre-tax. In other words, there’s no tax deduction but you get the money in pre-tax. And that’s what makes this Mega Backdoor Roth. Now we get-

Joe: Isn’t that called after-tax?

Al: Sorry. After-tax. You’re right. I’m not paying attention myself today. After-tax.  In other words, you pay taxes on it, so it’s after-tax. Right? You get that into the 401(k). Now if you’re 50 and older you can do another $6500 so it’s actually $63,500. Now here’s the benefit. The benefit is if you’re employer, if the plan, allows you to do in-service withdrawals and which usually they do when you’re 59 and a half, then you can take that after-tax money in your 401(k) and transfer it or convert it is the word to a Roth IRA and because you didn’t- you’ve already paid tax on that, there’s no additional tax to pay. So it’s kind of like making a giant Roth conversion like a Garage Door back ______ Backdoor.

Joe: Because the Backdoor Roth is- you take an after-tax IRA contribution, let’s call it $7000, Larry’s over 50. There’s basis in the IRA because he didn’t take the tax deduction. It’s after-tax. And then he converts that into a Roth IRA. There is no tax due because he’s already paid tax on the money. You have to look at the pro-rata rules and the aggregation rules that I’m not gonna get into. The Mega Conversion Backdoor Roth, as Larry puts it, as I like to call it the Barndoor, that’s when you utilize the full defined contribution limits. But it’s not available to everyone. So you have to have a plan that allows after-tax contributions to do it. So even though he’s saying hey I listened to a previous episode and you were talking about it you could put in the $63,500 and then convert it. Well, the plan needs to allow after-tax dollars. So just make sure Larry, that you can do this Mega Conversion Backdoor because people then kind of get confused. So he goes “This includes your full limit of your Traditional IRA, company match, company profit sharing, etc.. and the difference, or delta,  can be added in an after-tax account. Then  rolled and converted into a Roth not to exceed $63,000.” So he’s kind of on point. He gets the rules.

Al: Except for one thing. Your Traditional IRA-

Joe: It’s not a Traditional IRA. The Traditional would be an additional $7000 in his case.

Al: So take that out. It’s employer match, the profit-sharing, and your contribution that make this up.

Joe: Make up the $63,500, your additional $7000 would be added on top of that. So that’s $70,000. So here’s the question, he’s going “After watching your show tonight on tax-loss harvesting, can I take like 1/4 or 1/3 of my Traditional IRA, tax-deferred, pay the taxes on it now, and convert it to a Roth IRA in 2020? Then it puts me in the 35% tax bracket but will be tax-free moving forward? What is the maximum I can do to take advantage of the lower tax rates now in 2020 before excessive taxation in years to come? Thank you very much for your thoughts.” Did you get the question Al?

Al: I think he wants to do a large Roth conversion from his Traditional IRA. And the answer is, there’s no limit. You could convert the entire thing if you want to. What we caution people is to watch your tax bracket. We think 35% is a pretty high tax bracket. Got to add your state tax to that. I probably wouldn’t go that high. I’d come up with a better strategy which would be convert some this year, some next year, some the year after, and so forth. We do know that we have until 2025 with these lower tax rates and maybe they’ll stick after that. Maybe not. We just don’t know.

Joe: So the first question is on the Mega Backdoor Roth. I want to do this $63,000 so it sounds like he knows the rules. But then he kind of asked me questions that make me wonder if he truly knows the rule.

Al: Well I think he means tax-loss harvesting. It can be tax gain harvesting but that has nothing to do with a Roth conversion. If it’s tax-loss harvesting would be a capital loss to go against capital gains.

Joe: Is someone like mowing the lawn?

Al: I think so.

Andi: I thought it sounded like music had started playing.

Joe: I mean you’ve got a ukulele kind of playing outside your window in Hawaii there Al?

Al: It’s our gardeners, they work 24/7.

Joe: They don’t stop.

Al: They keep goin’.

Joe: So tax loss harvesting is something completely different with the conversion. Tax-loss harvesting is something you do in a brokerage account that is outside of a retirement account. So when the market goes down and you have a loss in that particular security you could sell it, buy something similar, take the loss, holding on your tax return, and then you can offset that loss with future gains. But that loss that you have, let’s say if you’re harvesting, ___ offset a Roth conversion. So if you have a large loss in a brokerage account, that loss will not offset ordinary income. It will offset ordinary income up to $3000 but that’s it. The benefit of tax loss harvesting is offsetting the larger losses in the brokerage account against larger gains in the brokerage account later on or in another security or another capital asset. But yeah there is no limit on a conversion so you can convert as much as you want. So it’s not tied to the $63,000 or $7000. People might be confused too of the Backdoor- everyone’s like Backdoor crazy here. I mean-

Andi: You started it.

Al: Yeah you did. Anyway, those are those are two different concepts and so- I love that gardener. He’s pretty good. He must be doing some really good work right outside. Anyway, so just to repeat what I said last segment, the Roth conversion, there’s no limit, you can do any amount that you want to convert, any age, working or not, that doesn’t really matter. You just have to have money in an IRA or 401(k). What should be your limiting factors, your tax bracket. So you look at your tax bracket, now versus in the future, and you make an intelligent choice. Usually it doesn’t make sense to convert a big amount and put yourself in a giant tax bracket all at once. It usually makes more sense to do it slowly over time.

Joe: Got it. Hopefully that makes sense. Larry, if you have any follow up questions you know where to find us.

Don’t skip ahead, we’ve got a very special offer for you this week. By the way, previous Backdoor Roth episodes are linked in the podcast show notes at YourMoneyYourWealth.com, so check ‘em out, along with our other free resources, like this one: you’ve heard the ever-insightful Brian Perry, CFP®, CFA on Your Money, Your Wealth® many times before, he’s the Executive Vice President and Director of Research here at Pure Financial Advisors. Brian has a brand new book out called Ignore the Hype: Financial Strategies Beyond the Media-Driven Mayhem, and this is your opportunity to receive a hard copy for free. Suited for the everyday investor, Ignore the Hype will teach you how to keep your focus squarely on time-tested strategies for meeting your financial goals without getting distracted by a constant barrage of news headlines. Learn the difference between short-term trading and long-term investing, how to filter the constant onslaught of information coming your way from every angle and separate the valuable content from the noise, and how to build a foundation for investment success based on common sense and academic research. Stock is limited and is only available on a first-come, first-served basis, so click the Special Offer button at YourMoneyYourWealth.com right now to request your copy. If the special offer doesn’t say Ignore the Hype, you waited too long and we’ve sold out! Click Special Offer at YourMoneyYourWealth.com now.

Mega Backdoor Roth IRA Conversion

Joe: Ed from Las Vegas, Nevada. He writes in Al. He’s like “Hi Joe, Al and Andi. Thank you for providing us with your great podcast. You’re both informative and hilarious.” Hilarious Alan. “Two questions-”

Al: I like Ed. So it’s not just you that’s hilarious. I get some too, even as a straight man.

Joe: Yes. You got it. I can’t believe this. There’s another Backdoor strategy-

Andi: Mega Backdoor.

Al: After we said we’re never talking about it again?

Joe: “Two questions regarding the Mega Backdoor Roth strategy if I may. Thank you.” No, you may not Ed. Oh okay. This is the last Mega Backdoor. I swear.

Andi: You said that last week.

Joe: Well stop printing this stuff out. Just reply back saying we’re done with the Mega backdoor.

Al: Just tell them ask another question.

Joe: Yeah. Just listen to any other episode. I’m sure that your question will be answered.

Al: So you know they’re going to do though. They’re going to rewrite the question that says Garage Door Roth.

Joe: There ya’ go. Instead of Mega. Got it. Or Barndoor.

Al: Fly under the radar.

Joe: “My wife, age 61, is in the process of exercising the Mega Backdoor Roth strategy whereby she makes after-tax contributions to her Fidelity 401(k) at work with plans to later roll those contributions basis into a Roth IRA at Vanguard. We have researched her plan and are confident her 401(k) supports the strategy. Her company also has 401(k) matching contribution and makes a pension contribution for her each pay period.  We are under the impression that the sum of the 4 contributions, 401(k) pre-tax, company match, after tax contributions, and company pension, cannot exceed $63,500, not $57,000 because she is over the age of 50. Can you clarify is this the correct amount?” Yes, it is $63,500, Ed. “Secondly, she started the after tax contributions to the 401(k) in August of 2020 and will have about $15,000 from the source by 2020 year-end. She’ll also have about $150,000 in the pre-tax ___ of her 401(k) before year-end. You think she should execute the rollover in January 2021? Or perhaps continue the strategy through 2021 and execute in 2022? She plans to retire in 2024. Thank you very much for your time. Again we love the podcast.” Oh, we love Ed and his lovely wife are just jammin out to us. It’s like a family affair Al. So no, move the after tax as soon as you can into the Roth. Because you want the compounding to take place in the Roth IRA versus the 401(k).

Al: If you keep in the 401(k), all the growth is taxable. Once you get into the Roth, any future growth is non-taxable. And I think maybe part of the confusion is you don’t just have to do one in-service withdrawal. Typically you can do as many as you want. I mean there might be some limitations based on your plan but we’ve seen people do them every single year. So do it as soon as you can and then do another one next year with whatever’s accumulated.

Joe: Well I’ve seen it where you could do a per pay period.

Al: Per pay period. There ya’ go.

Joe: So you’re putting in your after tax money in the pay period and then you’re taking it right back out that pay period and put it into the Roth IRA. So the faster you get the money, the after tax component of this strategy in to the Roth, the better. Just because then you get the compounding effect. So I think Ed’s thinking we’re going to get about $15,000 of after tax this year, maybe a little bit more next year, should we just do the in-service next year because we have a larger amount to do the conversion? And I understand the thought process but, no. I would get the money into the Roth IRA as soon as you possibly can. So very cool. Very good strategy that they’re doing and hopefully this will be the end of the Mega Backdoor. This will be the death of Mega Backdoor.

Al: Before we have the death, I’ll bring up one other thought. And that is this does tend to work better when you are older, when you’re over age 59 and a half. Because you can get the after tax money into the 401(k) and then you can do an in-service withdrawal generally, immediately or within the year.

Joe: But I’ve seen plans under 59 and a half that will allow you to take the after-tax components out no matter what age. An in-service withdraw of pre-tax dollars, usually, you have to be 59 and a half or it has to be other dollars that were rolled in from another plan. So let’s say I worked at American Express Financial Advisors, I had a 401(k) there and I rolled that money into our plan here at Pure Financial Advisors, and its $100,000. I’m 45 years old. I could take that $100,000 back out of this plan even though I’m not 59 and a half. Just because it was other dollars that were rolled in. Sometimes I’ve seen a company match no matter what age. So it’s all up to the plan document. So that’s why it’s so important to make sure that you know what questions to ask when you’re talking to H.R. and I think with Ed he’s like yes we are confident. We’ve talked to the Fidelity 401(k) reps and we can do this strategy. But the problem with the Mega Backdoor is that there’s- you need to have a fairly large plan because there’s testing that happens. They don’t want highly compensated individuals to take advantage of it while the rank and file that don’t even save into the plan. So there’s testing that goes on in some of these plans. So the larger the company, the likelihood of you are able to utilize this strategy is probably a lot higher than you know a small company like ours.

Al: And that makes sense and we’ve tried to see if our plan had it. And our payroll company that also services our 401(k) had ever heard of it. And I got on a long phone call with the supervisor and they still never heard of it.

Joe: It was so it was so annoying.

Al: We finally gave up.

Joe: We could just take over the plan ourselves I suppose.

Al: We could.

Joe: We’re the ones who end up doing it. But we chose-

Al: Well we’re helping our clients, they don’t have any time. It’s like the cobbler’s- whatever.

Joe: The cobbler’s kids go shoeless.

Al: The shoemaker. Whatever.

Joe: The cobbler’s kids are shoeless. Right? Isn’t that how it goes?

Al: I think so. I was questioning what a cobbler is.

Joe: A cobbler’s a shoemaker.

Al: Okay. Perfect.

Taxation on Overseas Inheritance?

Joe: Rahul, he emailed Andi. He goes “Hello Andi. My name is Rahul. I listen to Your Money, Your Wealth® podcast every week. I have a few questions that I would like to ask Big Al and Joe. So here goes.” You ready for this Al?

Al: I’m ready.

Joe: Here goes.

Al: Oh wait, this looks complicated.

Joe: I know. “Hello, Big Al and Joe. Love your podcast. The content you guys put out every week is very informative. A little background about me. I would like your help in answering a question more accurately. So Rahul’s 32 and married. My wife and I both work. Our household income is $110,000. I am from India, I recently acquired U.S. citizenship. My parents are still living in India and are Indian citizens. My father is planning to sell our ancestral property.” Pretty close?

Al: Yeah that’s very close.

Joe: OK.

Al: Not perfect, but close.

Joe: OK. Very good. “- property and by doing so would be getting close to $500,000, converting Indian rupees to dollars with current rate due to the sale of the property. Considering he has paid all the taxes in India, what would be the best way to bring that money to the US without inviting more taxes?” So he’s got a few options, Al. Do you want to throw a stab before I tell you Rahul’s great ideas?

Al: Well I think he’s got the questions, so why don’t you read question one?

Joe: All right. “Will I be taxed if I inherit the money?”

Al: The answer there is generally, no.

Joe: Right. But if it’s coming over from India then you got all sorts of kind of weird stuff that happens. But it’s-

Al: Well it-

Joe: – just the exchange rate is really kind of the biggest thing of- and who’s going to do it? And what bank is going to exchange it? And how the money is going to get classified when it comes over?

Al: And so a couple of things of note there Joe, and I will preface this by saying I’m not an international tax expert. I just went to Google.

Andi: They’re international tax experts.

Al: According to Google- so if you’re not a blood relative – now he is a blood relative but I’ll just start there. If you’re not a blood relative then you can transfer about 50,000 rupees a year. Which I checked it, that’s about $700. It’s not very much. And anything above that $700 dollars is ordinary income. So that’s not a good solution.

Joe: Wow.

Al: It doesn’t say anything about blood relatives. So my sense is, it’s not taxable. But I don’t know that for sure. That’s my sense. The other thing I’ve found is that you’re allowed to send $250,000 per year on an annual basis between April and March. So there’s that rule. However it seems like there are exceptions Joe, and I’m not an expert at that. So my best advice is to probably go to a CPA firm that has international tax experts on staff and they can help you explicitly. But that’s what I found, that’s what Google told me.

Joe: All right. Very good. We should hire Google.

Al: We should. It’s pretty smart.

Joe: “I’ll be sponsoring my parents to get their green card permanent residency next year. Would it make sense for my parents to open an account here in the U.S. after obtaining the green card and then transferring the money to their own account? What kind of account do you recommend for them to open? An IRA? Any possibilities of a Roth conversion?” Everyone just wants to convert, don’t they?

Al: They do. It’s the Roth Show, right?

Joe: Geez, it’s awful. “I appreciate all your help guys that you can offer me. Thank you, Andi, Big Al, and Joe. You guys are awesome. Hope my question gets featured on your podcast. Waiting eagerly for your response.” All right. Yeah. Just jam it in the Roth, $500,000.

Al: Well the first- Yeah the first question-

Andi: Don’t do that Rahul.

Al: No. ‘Would it make sense for my parents to open an account here in the U.S. after obtaining their green card and transferring the money to their own account?’ Maybe. Ask that same person. Ask the international tax expert at a CPA firm. Not Joe and I. ‘What kind of account should I open?’ You open a savings account. Brokerage account, savings account. You’re not allowed to put the money into an IRA or a Roth. You have to have earned income and there are all kinds of rules. So it just goes into a brokerage account, a non-retirement account or a savings account or a CD, a non-retirement type of account.

Joe: Thanks, Rahul. I guess he’s saying things for nothing to us.

Al: I think so.

The next installment of the Decision 2020: Your Vote and Your Money blog series is now out. In the first installment, Pure Financial’s Director of Research, Brian Perry, CFP®, CFA examined the race for the White House, as well as where the candidates stand on some important economic issues. In Part Two Brian focused on the legislature and took a closer look at the House and Senate races, while in Part Three he evaluated the historical record to see if elections even matter to markets. This time, Brian discusses the question, are your taxes heading higher, and what steps can you take to lower your future taxes? Read all four blog posts right now in the podcast show notes, and be sure you’re subscribed to the YMYW newsletter to get updates when Brian publishes the next installment on building an election-proof portfolio. Click the link in the description of today’s episode in your podcast app to go to the show notes, read the podcast transcript, access Brian’s latest blog posts, subscribe to the newsletter, and send in your money questions – and comments.

Comment: FIRE YMYW TV Episode

Joe: What is this? We have some comments here.

Andi: Yes she had a comment about the FIRE YMYW episode.

Joe: Really. “Jose was definitely en fuego in this episode. Very well done.”

Andi: There you go. You got a new name, Jose.

Joe: All right. Jose. No way Jose. “And of course he doesn’t want to retire. He’s El Presidente at Pure Financial, golfing at the best courses, and dating mostly attractive, low self-esteem ladies along the way.”

Andi: Did you say something about that on the TV show, Joe?

Joe: That I date unattractive women” That I know have low self-esteem.

Andi: No, attractive- “mostly attractive, low self-esteem women.”

Joe: No I don’t believe I did.

Andi: Wow.

Al: I don’t recall that either. But, yeah mostly attractive- does that mean sometimes they’re-

Joe: I would highly attractive. Highly attractive. And yes, I do try to play some of the best courses.

Al: I would say I’ve met some of your ladies, they’re all very high self-esteem ladies.

Joe: They are very high self- very successful.

Al: And attractive.

Joe: Thank you very much Al. Thankyou.

Al: And I’m living my life vicariously through you because I’ve been married for 32 years.”

Andi: He lives his life vicariously through you, Al. Come on now.

Joe: Yes.

Al: He wants to be in Hawaii for- how long have I been here?

Joe: I don’t know. Have you been here a month and a half?

Al: Almost a month and a half. Yep.

Joe: Well thank you for that.

Comment: Don’t Call it the Backdoor Roth Show

Joe: Kevin. He writes in. “Hi, Joe and Al. I just wanted to say that I’m in my 30s and get more laughs out of your radio show than I do with Joe Rogan.” That’s BS, there’s no possible way. Kevin. I feel bad for you. “You guys are awesome and I don’t support you changing the name of the show to the Backdoor Roth Show. Keep up the good work. I’ve been a loyal podcast listener for some time.” Well, that was a very nice comment. Thank you for your thoughts. Joe Rogan. That’s pretty impressive. I’m a big fan of Joe Rogan.

Al: So I guess you and I, probably you, you’re just as funny if not funnier.

Andi: And that is the top-rated podcast, like, of all time.

Joe: Just coming from you Al. Just keep pumping my tires.

Al: – because I’m a straight man. So it’s got to be you.

Al: Oh. Yes.


Derails coming up!

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