Rules for Inheritances and Making Roth Contributions for Others - 504
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Ted Angel jet in medicine, wisconsin, have inherited one point six million dollars in a trust. Can they convert that money to rock without distributing IT? Should the trust on their home so they can use the homework quality millican, rockford, texas, was added as joint owner on her parents bank accounts after a medical event.

But what have they done? Should relpin Alice in south CarOlina a use the required minimum distribution from very inherited I ra to pay off conversion taxes? Will find out today on your money, your wealth pocket number five o four plus.

Can theatre in seattle contribute to his wife luisa rob by a rag? Can mark in insane tis make rough contributions for his grandkids? And finally, john would like joe biggles viewpoints on his rough s conversion strategy.

And the fellow come up with a very unique way that john may be able to pay the tax on IT. I'm executive producer andy last, and here are the hosts of your money, your wealth. Jolly Anderson, tfp and backroom hawaii gal cole, find cpa article .

last week you're in hawaii ah I don't know what you think .

is little bit Better hawaii where answer ing your money questions .

go to your money will that can click on that special offer?

We can ask joe bigger on air and ask you.

I think you can click .

on the off if you want. You can download a White paper, but if you want a question and answer, click ask john big out.

Is that going to be?

It's because so many of our old podcast and T, V episodes also asked big or like that got IT?

Yes, all right. Well, let's go to IT. We got ted from medicine, was concerned, write tennis, greedy ens Y M Y W A crew. I found your podcast for a google search about three years ago. Enjoy the copious information will get that right.

yeah. obvious. yeah.

Which means a lot, a lot. Tell you in the mor. Listen while walking the three border college outside the passer.

Where are three horses? grades? I can just picture big ted.

Ever have a horse? No.

a few .

years get IT.

Uh.

medicine was concern. I live in madison. Was concern for little short stay there.

yeah. I was thinking, maybe had a horse yeah no.

no, no. I kind of in the city. Uh, let's see my wife George, yet retired from nursing this year, fifty five year.

Uh, he drives the dogs around in the twenty twenty three two year to c impose your horse trailer with the twenty twenty four two, yet a tara. I'm a fifty nine year engineer in plan to work until at least sixty five. I drive the vehicle. George yet leaves behind georgia, drink of choice, the line mark in the summer and find cabin in the winner. I enjoy anything bottle by founders brewing as a bruy .

in grand rapids, michigan, home of the delicious all day I P A.

all day I am okay.

means in the day and just I yes, I .

just remember, no, no was from was .

that .

but just okay, we are three point two million dollars. Attack the other counts, but no spare cash for which to pay for rob conversions. Our homestays were eight hundred and fifty thousand with five hundred grand and equity.

My parents left me a trust worth one point six million dollars with the one point two million dollar basis. Here's the question. I'm hoping football okay, but he said he has no cash to pay for right conversions. But he got one point six million dollars IT sounds like liquid d cash to me.

Well, it's in a trust, is probably a irrevocable .

trust time guesting.

Maybe no parents left him a dress so he doesn't sea here. He's a beneficiary of the trust.

I'm guessing OK. Is there a reasonable way to use the trust without distributing IT to convert them above or display tax money? Should the trust by our house to free up the equity? Do you think using the trust this way is a good idea to have any other suggestions for leveraging the trust for this purpose? Thanks, ted in georgia. Baxter.

that's from the mary thailand .

more show got IT. So you know, people get confused when they inherit money that is in living trust from what they apparent, right? So there are the trust year, successful trust year. They could be the beneficiary of the trust, but IT could be a total like a revolving able trust. So they could just remove the trust of their name or is IT in an irrevocable trust where they are the income beneficiary of IT.

right?

Do they have access to the corporation of the trust that you know.

I an IT depends on the trust argument. But but I would say, and i'm not atterley, but what i've seen more often than that is that a living trust from your parents, what happens is when you inherit IT, IT becomes an irrevocable trust, whether you can get rid of the trust or not. That up to the trust documents, a lot of them, you some you can do, in many cases, you want to keep the help.

So do you have a trust? I do right.

You have acted in your trust, I know. But if I, if and I were to pass away, the kids would get IT, but and is irrevocable to them.

So you're gonna keep the money and trust, then you have distribution, right? Or is there going to be a outright distribution at death?

No, it'll be in the trust. The kids have the .

ability to the protest from trade, which is which is .

probably the case here. And so the real answer is this when you distribute things from the trust, so it's it's taxable to the extent there's interesting income, right, or give IT an income. So the first money that comes out of the trust is considered income goes on your tax return.

But any extra money that comes out as a principle, there's no taxation on that. So that's the way to do this there. There's really no reason to buy a home, your home through the trust.

In fact, that would be a terrible day because you would blow the five hundred thousand thousand exclusion when you sold the home later. So so so yeah, I mean, I guess that depends upon the trust document. But in all likelihood, income will come out first on a distribution .

and point two million dollars of basis. So we got four hundred thousand dollars of game. So that would be a filter that would be tax capital gains yeah .

and usually with trust, the capital gains are text in the trust, but interest and dividends are text. Whoever keeps IT, the trust would pay the tacks of a keep set. If IT distributes IT, then the beneficiary pays attacks. That's typically how it's done.

I've seen that done.

How you are trust? sexpert?

No, no, most people set up in like A A revocable living trust to avoid problem.

Now I understand that, but once once the the person that set up the trust, the grater and spouse who dies, then IT becomes the revocable trust to the kids, subject to the terms of the trust and most eternals. Now we will tell you, keep the assets in the trust because they have liability protection, but you don't have to.

So he could distribute a hundred percent of the trust to his own living trust.

I mean, he Better his there's a lot we know know about this one.

but should he use those dollars that are sitting in the trust to help attacks for the conversion?

Yeah, that's really the second question that didn't why you think about that.

But now that is a question. Is that reasonable way to use this trust without distribute, convert some of those? So he doesn't want to distribute that. He wants to keep that in there. So do the conversion and just distributed enough how of the trust to pay the tax?

And if there's a little tax to pay up from the income, either the trust will pay IT or he will pay IT. I guess what he's saying is there's no cash. It's all stuck.

So what you do in that case, you look at the the stocks that have the least of atic game, and that's what you end up selling and distributing. So there's very little couple of games IT IT doesn't have to be done parada where you say you sell a whole picture. Maybe you ve got multiple mutual funds or whatever that may be, just sell sell a particular fund or suck that has the least of matter gain.

So he's gna work until eight sixty five, and i'm assuming that they're gona live off of his salary until sixty five. So they already have three point two million dollars in his fifty nine, so he's going to a work another six years, right? And he's probably maxed out to four one k because they have several million dollars in a pretax account, let's say in ten years with those contributions um or sixteen 有的是 it's gonna have a tax problem。

Yes, there's no question. So should he do conversions? yes. And and can use the trust sell sets to pay the tax? Yes, you can.

为什么 just that would have been so much easier if you guys talking .

circles and you're known for that。 So IT works.

but we get sometimes we get weight much information and sometimes we don't .

get there .

that we're just trying to picture what else going on here, right? But we'll do the best we can. Yes, yes, you know what? And I forgot when .

when we're talking about the special offer at the top of the show, this week's offer is actually only available for a limited time. It's the top ten tax tips guide. And you got a downadup before the special offered changes sometime this friday because IT will be be available again for months. This is the companion guide to this week's episode of your money, your wealth TV, which is called ten tax cutting moves to make.

Now there are several ways to lower your twenty twenty four taxes, but most of them need to be done by december thirty first, which means that as of today, november ninety, you've only got six weeks left to convert to off max out your retirement contributions or harvest your tax losses or gains for its account for twenty twenty four. When you do your taxes, find out more about these and other things you can do before the clock strikes twenty twenty five, so you send less of your money to the irs. Watch ten tax cutting moves to make now and downside, the top ten tax tips guide before the special offer changes this friday click the links in the episode description to watch the show and the downside, the free guide now let's get back to those inheritance issues.

Hey, andy, I hope you will. How are you?

I am. Thank you. Thank you very much more.

Lisa OK, very good. I last vote to win my w in twenty twenty. cheer.

Time flies. I remain a loyalist. okay. Well, thank you very much. Since we retired six years ago, our network s has doubled. So thankfully, it's from this that .

big G I don't .

think that no, we are breathing. If we give john in big al a great deal of credit. Look at that. Wow.

that you left out the fact that he gave me a great deal of credit too. But that's .

fine not to see that we are breezy and we give joe and big out and you i'm staring okay, I do can baby emails?

It's coom sitting .

in raining and I am see IT so terrible no, where is it's because I was went to the next line .

and we get him all right, husband, I have a network at six point five million in my ninety something. Parents have a network of two million dollars, almost completely of cities in cash. So you shouldn't be much of a step up in basis uh, in their future states. We are all that free the summer.

We are experienced in medical crisis and without sure we would lose one parent when the snow cleared, my parents added me as joint owner and all of their bank accounts with rights survivor and the executor, and also beneficiary of fifty percent of their stake, our two nephews will inherit twenty five percent each. I intend to do right by them. Well, if there the .

beneficiaries, well.

well, because she's joiner and .

beneficiary of fifty percent. So how do .

you write on him? gap. But what have I done? Oh, when the time comes after the loss, ble parents are essentially be giving the nap use a gift when I distribute their shares to them, their gift tax, should my parents find a gift tax return.

Thanks so much, Melissa. From a rock port texas. All right. So that's one of the last things that you should do. And I think SHE realized this after the fact is that sometimes people like parents will put kids on joint title of either, you know, assets that they have on retry and accounts.

And this is the issue that comes in the place that now you're an owner, there's no step up the basis he had. Other beneficiaries will now she's the owner hundred percent. But SHE still wants to do right by the nephews. So he has to give them what fifty, five hundred thousand dollars each.

That's what the swim play, correct? That would be, require gift, tax, retry.

Look that word. Because what's the annual gift?

Uh, what is IT? Eighteen thousand? Whatever IT is now. yeah. So a Better way to do this would have been a set up an account on as a transfer on death.

That way you can have multiple beneficiaries, and that that would have solved this very easily, instead of, instead of join ownerships with right survivable. What that means is that when both parents pass away, now you are the soul owner. You owner is your asset.

And if you want to distribute some of that, you can, but it's a gift, so you have to file a gift tax return. So then I guess the question jays can be and done. We're not turnings, I don't know. But if if possible, that, that would be something you should try to do is is undo this if if you can.

Totally rather yeah transfer death and then you are um org just put IT do they have a trust? You can put IT in the time of the rest.

You put in the trust .

in a power of attorney financial until you could have um you know if there's can't ug into the issues yeah then they can step in and in help SHE could .

be limited power atterley that way so the benefit ties are all attack that would have been the go yeah take .

SHE realizes that after the fact it's like, okay, well, here we have a medical issue and let me get on title so I can help and I can figure all this stuff out you and that's what a lot of people do and that that seems like the right thing to deal, right? I have some financial action I can come in, I can step in and I can help you out. And then after the fact, it's like, oh my god sh, what did I just do?

Because now there's all these kind of weird laws and loopholes and things like they have a phenomenal state of seven million dollars. So now you had the two million dollars on top of that. They are utilizing their gift exclusions and exemption when exact that when they might need IT themselves.

yeah. And does he have to pay to the parents, have to do a gift tax return, possibly so that you you have to get within a state planning attorney.

Because here at her, a million box. Yes.

I mean, or two, I actually be the whole account.

So so yeah.

anyway, see what, see what can be. And then if, if possible.

this is the a door sixty one in lis. My wife, she's age sixty. We're living in in north seattle, l Louis, like red line from one of the many one club memberships that we have.

I drink a good pills. Red wine occasion. Lush, what's a pretty lish free?

That is an I P. A work .

for you, okay.

get no pets. We raise. E two Young men who are financially independent.

give that was very killed.

I think I are both elementary school teachers. I planned to rea, I planned. And retirement after thirty three years, this coming, someone at the age sixty two, my pencil will be around thirty eight thousand dollars year with a color three percent annual.

My wife will continue work until she's sixty five and have a pension about forty thousand hours. You will paid my medical until and sixty six. She's on a different state plan to me and will be teaching twelve years, so was unable to collect her pension until sixty five.

We will both collect six so security at sixty seven, my so security will be thirty eight thousand and lives will be thirty four thousand and four three D, C, teacher account of nine hundred thirty grand additional four three b of two fifty and seventy thousand and rods. 呃， 路易 has a two hundred sixty thousand four or three hundred and seventy thousand around together we have a broker account of two hundred， twenty thousand, thousand nearly to the worth to retirement our annual incomes to hundred sixty gram. However, we put into our various accounts about fifty five hundred dollars per month of that income.

We would like to spend one hundred sixty thousand dollars annually after taxes. When we are both retired. During the four years until li lw retires, her salary will be one hundred forty two thousand, and I will have my pension of thirty eight, eight hundred thousand knowsh growth and come for those years will be taking little from any investment or our retirement accounts during that time.

Here's our questions. Is the plane feasible? Uh, that sounds .

like you I like you.

我 去 two million dollars liquid yeah roughly yes。 And then um the bridge, when he retired, she's going to continue to work. So he got his first grand and she's got her income.

yeah. So when he retires, then she's got her pension. He's got his pension.

The two million dollars is going to be worth more because she's into IT, right right? And then that's even without social security. So yeah I think this looks pretty .

good good um as I understand that that he contribute to my rap rate until we retires since SHE is contributing to a rap, is that true? What kind of genres? There's a small contribution.

So this is a really good question. This is a good question is that so theatre um is retiring, so he is in every own income. So there's such qualifications that you have to have to put into retirement accounts in earn income is one of them rate. But he's retired, he's collecting a pension, but the pension is in earned income as classified even though he earned IT from an irs perspective, it's not called earned .

in yeah the reason because he didn't currently pay social security taxes on IT.

So is like, well, if my life puts into a rough, can I put or can I put IT into a rough? What the qualification has nothing to do with her putting money into a rap. I A the qualification is is he has earned income and if you're married to her.

correct.

If SHE has earned income in your mary tour, then you can put money into a rot. It's called A A roth ira or sponsor ira contribution, right? So good to go.

yeah. My pooer in the last year is giving a rap option. Can I have two rap accounts? What is the max for both? Kay, well, now you confusing two different for things. You ve got a four, three b that's a rough you can absolutely fully in. And then you can fully a rough .

I R two things.

different things. You get to four three b or 4k for those that have a four one k plan or four fifty seven。 And he has four, five, eight, seven with a rough option, which I believe he does.

We can go hundred percent right? And all of the plants, yes. So the limon four or three .

bees s thirty, thirty, thirty, thirty five and then eight .

thousand for the so yeah, you can fully fund that. And then you could do a conversion here, number four years. Here's the wrong conversion show with the big out.

No, I think it's a judge.

I, I, I think we are very underfunded. And what would you be wise to start doing conversions? If so, how do we choose the amount each year that the account of? How do we choose the amount each year and what account do we use to pay the taxes? Thank you for any not advice you can give.

Thanks to the this is not a about nice at all. Use your taxable account, use your broker account to pay the tax, should have make sense to do conversions. Your fixed income is going to be roughly one hundred and fifty thousand dollars per year. You're not gna touch the two million dollars that you currently have now for maybe for a while.

for a while, maybe for a long time.

Yeah you know if the amount that you pull out is probably not a lot, right? So doesn't make sense to do conversions. I would say that you would probably want to map out on a little bit but up the back of the ebola here, I would say, um yeah and I .

think so too. And I would probably given your so he retires .

at the end this year um .

well in the summer this year. So and so should he do a conversion this year depends upon his income and whether you get extravasation pay and whether makes sense. The thing is probably stay in the twenty two percent.

right? Yeah stay in the twenty two. The top of the twenty .

two taxable income is, yeah that's that's a couple hundred thousand dollars.

So tax will income. So it's not your growth income, a justice growth. You have to look at your tasks, return a kind of forecasts out.

So look at your tax. Will income stain that twenty two percent tax ranked? And that's where I would kind of start. Yeah, if I were to pear the tacks, I would pay IT from my casual tax.

I would do. And to say that another way, two hundred thousand is the top of the bracket standard deduction is about thirty thousand dollars, a total income about two hundred thirty thousand. This is what you can do. So would be your income, your wife income, plus rough conversion, no more than two thirty.

I, andy, joe beg, I love the show, have watched almost every episode. wow. Join occasion.

Fifteen year old sketch drive a million, married, sixty three years old, five, sixty one built. Retire, right? That's right to the point.

Love that we got realf and Alice, the honeymoon. Did you make this up? That what he wrote .

in rote .

then can very cool. So see here we got a thirty four thousand eleven year. It's a pension income with the cost of living adjusted. We have one point three million dollars and it's one hundred grand and broke account fifty grand in my savings account in two hundred fifty thousand in our rods. Okay, so hundred sixty two and inhered dia, um prior to the twenty twenty stress rules.

R M, D, about sixty five hundred dollars currently no debt in two percent tax break, seven percent state tax breaking, trying about forty thousand thousand a year from traditional I R A, currently on the top of the penchant for living expenses. So security at seven will be sixty five thousand and eight year combined, and having a hard time to justice, using my cash buffer and leaving as cash less even the event of a market downturn. Planning on doing a conversion started this year, about forty thousand dollars in using the R.

M. D. From my inherent I rate to pay the taxes. Trying to figure out if raw conversions makes sense for us. Just making the conversion of pain attacks out of the conversion kill the benefits if we won't take rough withdrawal, pretend to fifteen more years. So he's going to inherit array.

And so he's got an R M D from the inherit ira of sixty five hundred dollars that is manator dying to take out, even though he's not a RMB age, because he inherited a from in on spouse. So is like, should I take that money and pay attacks to do a conversion? Does that make sense?

Okay, what did IT .

let's see here? Well, well, f and Alice is kind of like almost the same, is got two million bucks buff ly yeah right. Um and then the fixed income he has with the pensions and social security is roughly one hundred expand seven ah so first when social .

security cakes will be greater than spending so they don't necessarily need their tax deferred, which means it's as he says or he says, it's going to keep growing for ten or fifteen years. So but they're .

not going to post so security for another ten years rubble or eight years call in.

right?

So they get a bridge of eight years, so they're pulling forty thousand dollars on top of their pensions. Combine pensions is uh thirty four thousand, right? But that spain in seventy four.

that's about the two percent distribution rate right now. So if if it's even in stacks and bonds that could earn, let's call IT six percent still gna grow.

He's got one hundred and sixty thousand dollars roughly in taxi in cash. So don't take the cash, only look at the broker count and see if there's some or take R, M. D. What are you going to do with the R. M D?

Yeah I would start with inherit R M D. I think that's a good use of IT. And then if you want a little extra the count but um yeah I go head and and stay in the twelve cent racket because that's which are in right now. I did a little quick math, and I think maybe you could convert even a little bit more, but I think I would all be in the top percent ranked.

Yeah, trying to figure out makes sense. Look IT big out. Do not work for you. I would IT do two. We got mark from inside is right to me because I five grandchildren, eight, two to eighteen, and I have started the savings account for each bomb. Should I put money into a rap for each or just keep that in a savings account? Well, mart, they need earned income.

Yeah.

that's the key. Two year old, yeah so eighteen .

old probably i'm guessing hazards income. So maybe that's get the one anyone that has also come yeah you can do that. But if they don't.

you can do that. You mark attribute to your grandkids accounts but they just need to show income of the pain in the security yeah and up to um the limit whatever is greater yeah so seven thousand dollars so they make five thousand dollars a vernia come tribute, five thousand dollars into a rap reform because .

the idea is it's a retirement account, right? And so you have to have income to put money into retirement account. So that's where where this can I can come from you. But they have to have earned income to qualify for IT.

whether we're talking about your grandkids earned income or your bank account and retirement savings. IT is shockingly easy to lose IT all. If you fall for an online game, or if you have your identity stolen, a schema can get into your devices. And now suddenly they are you, your accounts are their accounts. And believe IT or not, according to the federal trade commission, people in their thirties and forties have reported the most cases of identity that if you're not completely technos abi, you may not even recognize these so called fishing attempts that can read havoc on your financial life, learn about common scams and tactics, and the best practices to adopt that will improve your digital safety so you can protect yourself from identity, though, watch our cyber security weapon or on demand and download our brand new identity that guide for free from the links in the episode scription hi.

it's got a john. Hey anjo O I recently found your show and have enjoyed hearing your viewpoints, viewpoint. Can I think we had viewpoints sound like someone with some cash? My wife and I are sixty three and retired. Our trick of choice is a craft beer, and we are driving in twenty and thirteen and twenty fifteen test.

And at point one .

two five percent, my wife recedes a pension of twenty three hundred dollars per month and monthly sociality reduced by web is eleven and fifty plan on waiting on my security at eight seventy point five. Why would you wait till l seventy point .

five is actually seventy IT will .

be fifty thousand so don't way john tells seventy a half seventy is when you wanna take him um we estimate our annual spending budget to be two hundred ten to two hundred sixty thousand dollars a year, depending on how much traveling we do or help our family members. So I knew this guy. I have cash. You you point yeah i'm like OK that there's cash involved.

I never associated that word with cash, but you know .

something I yeah I like like your family. I want the viewpoints that you can share .

cash got IT. Okay, i'm following in alright.

We have seven million dollars in traditional iras. My wife has two million dollars and I had five million SHE has twenty thousand knowledge rap and I have a ten thousand knowledge. And rob, we do not have any post tax investment. We are looking at current tax rates are withdraw rate and how much the ire rates will become at the time we had R N B H at eight seventy five.

Does that make sense to convert to the traditional area money to a road by maximize twenty four percent tax bracket ah this year, next, all right, then decide what is the best based on the new tax is twenty twenty six. The taxes will be paid by the funds withdrawn for the traditional don't pox or savings to upset the rough conversion dollars. We would like to minimize the tax is going forward in our looking at scenario such as one of us pain or is one of us are passing in the survival ism individual versus mary.

We are concerned about leaving the funds to our three children. They are all making good money in the inherent its will just check up their tax rank over the next ten year window. We appreciate the sweet ball and how to get the most of the money out the traditional area.

thanks. Job done. Thanks for the question. congratulations. And uh the wonderful mistake even like uh saved over the years sixty three years old um and L I would I like hear your .

viewpoint in okay um I would say, uh I mean so we don't Normally recommend people do a rough conversion and pay the taxes with the money out of the I R S. Put extra money out just to attacks. However, in certain cases where it's rather extreme, like you have A I R A .

or seven million cars .

and no cash or brokerage account to speak up, uh, yes, I would. I would seriously think about doing IT. I would go to probably the top of the twenty four percent and like like he was john was was saying here's the turkey part though is is not like, let's say they're spending two hundred ten to two hundred and sixty thousand but they have to withdraw probably sixty, seventy, eighty thousand more just to pay the tax on that.

So it's probably not that much room their sum the sum and I would do IT to the extent I mean the top of that um twenty four percent bracket is uh with three hundred eighty four thousand, we add the standard deduction to that we get two about three four hundred fifteen thousand of total income. Maybe that as much as you want, but you just have to be careful that you pull enough to pay the because if you know, then the next year you ve got to pull extra to pay the tax for last year, that you're going to pay the tax this year. So it's just it's a little tRicky calculate.

It's a um it's good it's good problem yeah it's a great problem to have. It's just trying to map this thing on what going to be the best solution here. Um he's Young enough, right so it's not like he's seventy three years old right, and has this problem so he has time leaked this thing out before the R M.

These kick in right? I would like to understand maybe a little bit more about the real state. He's got two hundred eighty thousand thousand twelve years last two per two percent um there he lock or something, maybe that he could get some liquid assets from that.

He's got plenty of cash to pay the dead off because once the R M S. Head potentially, let's say in ten years at seven and he let say he's taking a two percent distribution and grows at five. I mean that three percent even of growth and seven million dollars over ten years. H it's still A A giant number IT is so that's .

a hackman idea. And I I I can't believe we haven't talked about .

that for a .

while because yeah, rates are high and IT doesn't usually very good idea. But in this case that there's so much an I A, what we're suggesting is to borrow in your home, which is Normally not what you want to do, you enregistered, but you bar on your home, use that money to pay the tax show. And then when the R N S kick in, you pay that thing off quickly because you have more money.

more money coming .

out there. And that's that's a that's a more tax efficient way to .

do this because then you're just paying interest forces the tax upon the .

tax upon the I I yeah I say for ninety nine percent of the people that this bad strategy terrible.

but for john IT might make sense. It's just looking at the numbers. There's going to be a cost to get this money out, right? And so it's either going to be tax to pay the tax in what I mean about that, right? You have to pull money on the retirement account.

You have the big tax on that money, then you give IT back to the I S because of the tax that you had to paid to get the tax up to pay the tax. Or you take a one and you pay six percent on the one, I think that could be a cheaper way. But you when people get close to retirement, they don't want at a debt. These are I two .

hundred eighty thousands .

by only that were only paying two percent. That all looks great. We're done from, we know only like what what day he lives in.

But this one .

he emailed in for pure, so he didn't actually give us the information. All we know is that it's john.

Anyway, I I think I just want to be really clear that this is not the great strategy for almost everybody.

This is a very specific ball of speed for job. Yes.

that's a great to say uh but again.

congrats. Play a few points um shed some light but IT is in a good spot. It's yeah it's he .

just map IT out.

He sounds like a really bright guy was going to be the was going to be the most comfortable for you to sleep at night.

Yeah, the trick. You don't do anything. yeah. The tRicky part for me is at sixty three, you've got twelve years before R.

N. D. So you want to extra dead for twelve years. Just have to decide whether this makes sense for.

or if he doesn't .

do anything yeah and then .

you just wait right and .

then .

you right it's like cooking well now you have a lot larger next day and then you have no that but your tax but is gonna be giant yeah .

you get to pick or or you just do what we originally said as you do enough at conversion just .

to get to the top.

get to the top of the twenty four and save enough for to pay the tax for what you pull down.

All right. Picks for the question.

Jom riche j in colorado and barny and betting we had a last minute shfs ling of the email duck this week and your emails will be answered next week in episode five o five, along with emails from Michael, south dakota and a mere in new mexico. I promise I appreciate your patients. We recently got a comment on our youtube channel from a listener who didn't know we had turned on comments earlier this year.

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