Roth IRA and Employer Roth Option Insights

You're lucky if you have a Roth option in your 401(k), 403(b), 457, 401(a), or other defined contribution plan at work. Not all employers offer a Roth option. (Some offer no option at all.) By all means, contribute to your employer's plan, especially if they offer a match, but you’ll still want to open up and fund a Roth IRA for a variety of reasons. Take advantage of all the tax breaks your Uncle Sam affords.

Why? Everything else being equal, you’ll earn a higher rate of return in tax-advantaged accounts than you would in regular taxable ones. As you invest over the years, returns are amplified by those advantages.

These investment vehicles are the low hanging fruit as far as your retirement savings goes. You’ve got to max them out the best you can and integrate them into a single investment plan for retirement. Combine that tax-advantaged plan with low investing fees and you’ve got one of the most effective investing tools on the planet!

Jumpstart Your Prosperity

Roth investments enjoy tax free earnings. The longer your time horizon for investment, the more you’ll benefit from tax free earnings. As the years go by, you’ll add other pre-tax (traditional) investments to the mix, which will also add value to your investment plan. The trick is to integrate all of those tax-advantaged accounts into a single investment plan.

Over the Income Limits for Contributing to a Roth IRA?

It may sound a little sneaky and underhanded, but it’s totally legit. You may be able to execute a switcheroo from your employer’s retirement account, a traditional IRA, or both. I update this book every year so you’re assured of receiving the most up-to-date tax and employer retirement plan information that will help keep you one step ahead of the pack.

Best Roth! Answers All of Your Roth Questions

• Can I tap my Roth IRA before age 59 1/2 without tax or penalty?


• My employer offers both a traditional and Roth option. Should I be making Roth or traditional contributions?


• Should I roll my old company plan into my present employer’s plan or an IRA?


• My employer offers a Roth option: Why should I still invest in a Roth IRA?


• Are there any downsides to converting after-tax non-Roth contributi

Become an HSA Millionaire

1. Enroll in a High Deductible Health Plan
2. Make the maximum contribution allowed each year (2022: $3,650 Single $7,300 Family)
3. Pay for you and your family’s medical expenses out-of-pocket
4. Invest HSA money long-term using risk management strategies

Assuming you’re making the maximum family contribution starting in 2022, a 3% yearly increase in the contribution amount, and a yearly 10% compounded return, you’d amass over one million dollars in 24 years. If you already have an HSA and have money in it, it will take you even less time. And that’s just in this one account!

Even if you don’t make the max contribution each year or withdraw some of it, that’s still a lot of money. All of this is before you consider you’ll be getting a quadruple tax break along the way, making your HSA like an IRA or 401(k)-type plan on steroids!

Get a Quadruple Tax Break

• Tax Break #1 – Your contribution is deducted from your gross income for the year. This saves you on yearly taxes and lowers your AGI.
• Tax Break #2 – Upon qualified distribution, you won’t pay tax on that contribution. That’s better than pre-tax or traditional contributions where you get the tax deduction but must pay taxes on it when you take it out.
• Tax Break #3 – You won’t pay tax on your earnings upon qualified withdrawal. With a traditional IRA contribution, you get a tax deduction but must pay tax on the contribution and earnings when you take it out. With a Roth investment, you don’t get a tax deduction but enjoy tax-free earnings. With an HSA you get it all!
• Tax Break #4 – Your final tax break is realized only if you make your contribution via payroll deduction through your employer. Your employer will not deduct payroll taxes from your contribution, saving you another 7.65% on your contribution.

The above assumes you’re making qualified distributions. There is a 20% penalty for non-qualified distributions before age 65. Non-qualified distributions at age 65 and older are not penalized but are taxed as ordinary income.

Subscribing to a high deductible health plan, maxing out your HSA contributions, and paying your healthcare expenses out-of-pocket isn't a strategy for everyone. However, if you and your family are relatively healthy, need some tax breaks, don’t mind a little extra paperwork, and can afford those out-of-pocket medical expenses, you might get as excited as I was about this money-making opportunity.

Back in the early 2,000s, after taking a deep dive into what was then a brand-new tax-advantaged account, I couldn't believe all the tax advantages an HSA afforded. I knew this translated into a higher after-tax rate of return, but I had no idea how high until I opened up my own HSA and started investing.

Like for me, an HSA could be the most powerful wealth-building tool in your arsenal. Unlike other tax-advantaged accounts that have come under fire recently by Congress, HSAs are beloved by both political parties. It isn't going anywhere anytime soon. Plus, it’s an individual account. Even if your employer writes checks to your HSA or you change jobs, the money accumulated and earned in your account is yours. You can even change HSAs if you don’t like the custodian your employer uses.

Opening and contributing to an HSA are some of the smartest financial decisions you can make.

Why do I call my debt elimination plan the “best” plan? It gets you out of debt faster than any other, and in the interim does it for the least amount. That’s my definition of best when talking money.

Take a moment and imagine the day you finally eliminate all your unwanted debt. Go on, close your eyes, and try to imagine how you’ll feel at that moment. Dream about restoring some of that restricted spending you endured during your debt elimination period, but how are you going to spend the rest of it?

Get excited at the prospect of eliminating all your unwanted debt. Get even more excited about your life after debt. You’ll have the opportunity to leverage those new-found saving and spending skills into something spectacular! When saved and invested properly, money can do that.

Realize your debt elimination period is finite. Start the plan right now. Why wait? Stick with the best debt elimination plan until all your unwanted debt is history. The more money you can commit to the plan from all sources during this period, the faster you’re out of debt and back to wealth building. It’s worth it to endure a little hardship for a payoff that can last the rest of your life.

As you can probably tell, I’m looking to shake up your financial house a bit. That’s why I’ll dial up not only the information you need in easy-to-understand language with lots of examples, but also bring enthusiasm and emotional support. Trust me, it’s well worth the effort. Eliminating your unwanted debt can be a life changing event.

Start your own debt elimination plan right now. Scroll to the top of the page and click on the “Buy” button.

An unfiltered view of life as a big-time college and NFL player, this autobiography follows Keith Dorney, an All-American at Penn State and an All-Pro with the Detroit Lions, as he recounts his journey to the top and his views of football at the highest levels. The book articulately and candidly explores Dorney's life as a passionate football player from the unique perspective of the game's most grueling position. Verbalizing the reality of an athletic career, Dorney shares his hilarious and painful stories—from summer practice fights and game day battles to the training room, operating room, and press room, as well as rowdy nights out on the town and countless mornings wracked with pain the next day.

What if You Get Hit By a Bus?

If something unexpected happened to you (like getting hit by a bus), where does that leave your loved ones? You’ve got to take care of the “big stuff” now. Estate planning is best done when it is not an emergency. If it’s urgent, you’ve waited too long.

Is Your Family Protected and Informed?

The Bus List’s three easy-to-follow sections are all about getting your own Bus List written. It cuts through the legal rigmarole and helps you get done what needs to get done:

Each section of The Bus List—Body, Brains and Bling—ends with a “Next Steps” checklist. Complete each applicable step, execute the appropriate documents and you’re done.

Your Last Best Gift

Your Bus List makes it easier on your loved ones during a time of great sorrow and grieving. Everything they need to know, like last arrangements, location of important documents, and access to assets is right there in one place. Compiling your own Bus List is one of the kindest, most thoughtful gifts you can bestow on your surviving loved ones. Be sure and make it your last, best gift.

Part I of The Bus List was written with busy folks in mind who want to get their own estate plan in place as quickly and easily as possible.

More Estate Planning

After completing Part I and writing your own Bus List, take a deep breath and consider delving into other important estate planning topics in Part II:

• Location of Your Bus List


• Estate Liquidity


• Federal Estate and Gift Tax


• State Estate, Gift, and Inheritance Tax


• Community Property vs Common Law States


• Should I Hire an Attorney?

Easy-To-Understand Language

As far as confusing legal terms go, I apologize in advance for using some of them, but there is no getting around it. To help, I've compiled a comprehensive Glossary of those nasty words, where you'll find easy-to-understand and at times humorous definitions that will add to your breadth of understanding. You’ll find it way more useful and entertaining than your dictionary.

I publish electronic and print-on-demand books for a reason: It’s the only way to deliver the latest information to you, which has been changing a lot lately. I stay on top of things and update all my financial planning-related books, including this one, whenever necessary.

The Bus List—Essential Estate Planning

Remember, estate planning is best done when there is no urgency. Get started on your own Bus List now. Don’t procrastinate any longer. Scroll to the top of the page and click the "Buy" button. Once you’ve got your Bus List written, you’ll sleep a bit easier at night knowing you’ve got you’ve got the big stuff covered.