Kyle Beckhusen joins us in our recent Virtual U.S. Financial Advisors podcast episode. He started his college career in engineering but switched to a major in finance after realizing his passion for numbers and people. Kyle interned with a Fortune 500 company for two years, which then led to a job as a financial representative selling life and disability insurance. He then went on to pursue his CERTIFIED FINANCIAL PLANNING™ designation and, with over a decade of experience, is now a Senior Financial Advisor at Kathleen S Wright Associates Inc.
In our conversation with Kyle Beckhusen, he explains the Roth IRA and Backdoor Roth IRA, and how they differ in terms of income eligibility. A Roth IRA is a retirement account where you can invest money after you've paid taxes on it, and you can withdraw the money tax-free in retirement.
However, there are income limits that determine who can contribute to a Roth IRA directly. The income phaseouts for 2023 Roth IRA contributions are $138K-$153K for single filers and $218K-$228K for married couples filing jointly. In such cases, Kyle recommends using the Backdoor Roth IRA method if you are above those thresholds.
Furthermore, Kyle tells us that the Backdoor Roth IRA method is actually a legal loophole in the tax code. The method allows individuals above the income limits to contribute indirectly to a Roth IRA..by contributing to a non-deductible traditional IRA first and then converting that contribution to the Roth IRA. The annual contribution limit for 2023 is $6,500.
Tune in to our podcast episode with Kyle Beckhusen and discover how you can make the most of your investments with his expert advice on Roth IRAs and backdoor Roth IRAs.
Key Takeaways:
(5:13) How Roth IRA can help you keep Uncle Sam out of your savings
(8:52) How to Pull Out Money Early with No Penalties and No Taxes
(10:19) How to Save for Retirement without Changing Your Lifestyle
(17:25) Traditional IRA vs. Roth IRA: Why Converting Could Save You Thousands in Taxes
(18:56) The Tax-Free Way to Grow Your Money
(25:14) Maximize your child's financial future with a Roth IRA
Navigating finances can be tough, and Roth IRA rules can be tricky. That's why Kyle recommends teaming up with a financial advisor or tax pro to make sure you're playing by the book. Don't sweat the details alone, get some expert guidance and make the most of your investments!
About Kyle
Kyle Beckhusen is a CFP® and Chartered Life Underwriter who was featured in the Top 100 People in Finance Magazine in 2022. Originally from upstate NY, Kyle relocated to Western Pennsylvania after attending Geneva College in Beaver Falls. He enjoys staying active by running races, doing triathlons, and playing pickup sports.
Additionally, he is an elder in his local church and loves spending time with his wife and three children. He is an experienced financial advisor with extensive knowledge about ROTH IRAs and other financial matters. His expertise and familiarity with these topics make him an ideal choice for those seeking financial advice.
Reach out to Kyle through website:
www.kswrightassociates.com
LinkedIn:
Kyle Beckhusen
Disclaimer:
The content has been made available for informational and educational purposes only. The content is not intended to be a substitute for professional investment, legal or tax advice. Always seek the advice of your financial advisor or other qualified professionals with any questions you may have regarding your business or personal planning.