The IRA Early Withdrawal Loophole Nobody Talks About

BiggerPockets MoneyJul 4, 202549m 16s8.6K viewsScore 75
Pricing & Profitability
advanced
Tax Strategy
Profitability
M

Summary

AI-generated

This BiggerPockets Money episode features John Bowens from Equity Trust discussing a "Roth IRA Layer Cake" strategy for accessing retirement funds before age 59 1/2 without penalty. It dives into how you can access those funds with tax strategy and rollover strategies.

Key insights

  • You can move traditional IRA, SEP IRA, SIMPLE IRA, and old 401k funds (that you deferred paying taxes on earlier) into a Roth account, using tax and rollover strategies in an "artful way". This converts the money into an account where it will grow tax-free in perpetuity.

Mistakes to avoid

  • Don't think of conversions from traditional to Roth IRAs as double taxation; instead look at it as a whole and do net present value calculations.

Tools & resources

  • Equity Trustservice

    Equity Trust is a firm that specializes in self-directed IRAs, which can be used to invest in alternative assets like real estate.

Curated by Learn STR by GoStudioM · Summary & key insights generated by AI · Reviewed by editorial