In today’s episode of Your Business, Your Wealth, Paul and Cory dive deep into the one topic that many potential clients and entrepreneurs don’t know much about, and that’s starting a Roth IRA. With most incomes, there are huge amounts of capital to be made outside of the regular IRS income tax system with the use of a Roth IRA. On today’s podcast, Paul and Cory dive into the business of going about starting a backdoor Roth IRA and why firms often tell people they can’t.


  • 01:46 – How often they meet potential clients who don’t know that they could be opening a Roth IRA.
  • 02:36 – What contribution and deduction limits actually mean.
  • 02:56 – The income limits of IRA’s and Roth IRA’s, and why people think they can’t do it.
  • 08:38 – What happens tax–wise when you convert an IRA to Roth in a single year.
  • 10:56 – How much Mitt Romney has in Roth IRA’s.
  • 11:52 – Why there are huge amounts of capital to be made outside of the regular IRS income tax with a Roth IRA.
  • 12:26 – Why many entrepreneurs are not as likely to retire in a lower tax rate as the person that’s a high income earning executive.
  • 13:48 – How to pull off the backdoor IRA.
  • 14:25 – When you’re doing a conversion, you’re going to need cash in some other pot of money to pay the taxes.
  • 18:10 – How easy it is to put money into an IRA and convert it to a Roth IRA.
  • 19:22 – Why you want asset location, asset allocation and asset taxation.
  • 21:52 – One of the pitfalls of the backdoor Roth IRA.
  • 25:26 – The problem with the pro–rata tax rule.
  • 30:08 – Why business owners should ensure they are controlling the investment structure in their 401K
  • 32:46 – Why your advisor is not going to want to do the math with you.
  • 34:36 – How IRA’s are considered one of the stickiest assets for certain asset management firms.
  • 37:32 – What the financial industry has taught people
  • 37:50 – Why firms aren’t talking about the ability to do this.
  • 39:44 – A giveaway for listeners of the episode.



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“Legends Are Made” Copyright 2017. Music, arrangement and lyrics by Sam Tinnesz, Savage Youth Music Publishing SESAC and Matt Bronleewe, UNSECRET Songs SESAC



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