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Ira

IRA contributions, tracking, and retirement planning

Form 8606 and the Backdoor Roth: How One Missing Tax Form Causes Double Taxation
·mike

Form 8606 and the Backdoor Roth: How One Missing Tax Form Causes Double Taxation

Form 8606 is the IRS's running ledger of after-tax basis inside traditional, SEP, and SIMPLE IRAs. Skip it and the IRS treats your basis as zero, taxing the same dollars a second time at distribution. This guide explains how the form works, why the pro-rata rule punishes most backdoor Roth conversions, and how to keep your basis documented for the next 30 years.

ira
retirement-savings
tax-planning
Inherited IRA 10-Year Rule: How Non-Spouse Beneficiaries Avoid the 25% Penalty
·mike

Inherited IRA 10-Year Rule: How Non-Spouse Beneficiaries Avoid the 25% Penalty

Non-spouse IRA beneficiaries must empty inherited accounts within 10 years, and annual RMDs become mandatory in 2025 if the original owner died on or after their required beginning date. A missed RMD triggers a 25% excise tax. Only surviving spouses, minor children, disabled or chronically ill individuals, and beneficiaries within 10 years of the deceased's age keep the old stretch treatment.

ira
retirement-savings
tax-planning
Roth Conversion Ladder: How FIRE Investors Tap Retirement Accounts Penalty-Free Before Age 59½
·mike

Roth Conversion Ladder: How FIRE Investors Tap Retirement Accounts Penalty-Free Before Age 59½

A Roth conversion ladder converts traditional IRA dollars to Roth in annual tranches, each unlocking penalty-free five tax years later — the core mechanism FIRE retirees use to tap pre-tax accounts before age 59½ while filling low tax brackets.

retirement-savings
tax-planning
ira
Rule 72(t) SEPP: How to Tap Your IRA Before 59½ Without the 10% Penalty
·mike

Rule 72(t) SEPP: How to Tap Your IRA Before 59½ Without the 10% Penalty

How Rule 72(t) Series of Substantially Equal Periodic Payments (SEPP) lets retirees tap an IRA or 401(k) before 59½ without the 10% early-withdrawal penalty — covering the three IRS calculation methods, the 5% interest-rate floor from Notice 2022-6, and the recapture-tax mistakes that bust early retirement plans.

retirement-plans
ira
retirement-savings
Self-Directed IRAs for Real Estate and Alternative Assets: A Practical Compliance Guide
·mike

Self-Directed IRAs for Real Estate and Alternative Assets: A Practical Compliance Guide

A practical guide to Self-Directed IRAs (SDIRAs) — what you can hold, the disqualified-person rules under IRC §4975, UBIT and UDFI on leveraged real estate, the McNulty checkbook-control warning, and the recordkeeping disciplines that prevent a deemed distribution.

ira
retirement-savings
real-estate
SECURE Act 2.0 Decoded: The Retirement Rule Changes Reshaping 2026 for Savers and Small Businesses
·mike

SECURE Act 2.0 Decoded: The Retirement Rule Changes Reshaping 2026 for Savers and Small Businesses

SECURE 2.0 Act provisions taking effect in 2026 and 2027 — mandatory Roth catch-ups for earners over $145,000, RMD age pushed to 75 for those born after 1960, $35,000 lifetime 529-to-Roth rollovers, and up to $16,500 in small business retirement plan startup credits.

retirement-plans
retirement-savings
tax-planning
The Backdoor Roth IRA: A Step-by-Step Guide for High Earners in 2026
·mike

The Backdoor Roth IRA: A Step-by-Step Guide for High Earners in 2026

The Backdoor Roth IRA lets high earners contribute up to $7,500 a year to tax-free retirement growth by pairing a nondeductible traditional IRA contribution with a Roth conversion. Covers the five-step process, the pro-rata rule that derails most attempts, Form 8606 filing, and the recordkeeping that prevents being taxed twice.

ira
retirement-savings
tax-planning
Hiring Your Children in Your Family Business: The Tax Strategy That Pays a Family Twice
·mike

Hiring Your Children in Your Family Business: The Tax Strategy That Pays a Family Twice

A 2026 guide for family business owners on legally hiring their children: how a sole proprietorship can pay a child up to $16,100 federal-tax-free, when FICA and FUTA exemptions apply, the documentation the IRS expects, and how a Roth IRA stacks on top.

family-business
tax-planning
small-business
The Wash Sale Rule: How Active Investors and Crypto Traders Walk Into a Tax Trap
·mike

The Wash Sale Rule: How Active Investors and Crypto Traders Walk Into a Tax Trap

A plain-English guide to IRS Section 1091 — the 61-day window, what counts as "substantially identical," the IRA trap that destroys losses permanently, the current crypto exemption, and how to report a wash sale on Form 8949.

tax
tax-planning
tax-loss-harvesting
Solo 401(k) vs SEP IRA: The Self-Employed Retirement Plan Decision That Could Save You Thousands
·mike

Solo 401(k) vs SEP IRA: The Self-Employed Retirement Plan Decision That Could Save You Thousands

In 2026, a self-employed person earning $100,000 can contribute about $18,587 to a SEP IRA versus $43,087 to a Solo 401(k). This guide compares 2026 contribution limits, Roth options, December 31 deadlines, and Form 5500-EZ filing thresholds so freelancers and consultants can choose the right plan.

solo-401k
sep-ira
retirement-plans
Your Complete Guide to IRA Contribution Deadlines: Don't Leave Money on the Table
·mike

Your Complete Guide to IRA Contribution Deadlines: Don't Leave Money on the Table

Understanding IRA contribution deadlines is crucial for maximizing your retirement savings and tax benefits. Learn how to effectively navigate these timelines to secure your financial future.

ira
retirement-savings
tax-deductions
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