Backdoor Roth Club w/ Brian O'Neill CFP®, EA, MQFP®

Rob Moore, MQFP® and Omen Quelvog CFP®, MQFP® welcome former fighter pilot and financial planner Brian O’Neill, CFP®, EA, MQFP® to explain how high-income earners can continue funding a Roth IRA. They also discuss higher mortgage rates, home affordability, and why financial decisions should reflect your family’s goals rather than headlines. Email The Fiscal Foxhole at fiscalfoxhole@gmail.com Book a meeting with Rob Book a meeting with Omen🇺🇸 Background: The Star-Spangled BannerDuring the 1814 bombardment of Fort McHenry, Francis Scott Key watched through the night to see whether the American flag remained.🏠 Intel Update: Mortgage Rates and Buying PowerA $2,000 monthly principal-and-interest budget supports roughly a $475,000 mortgage at 3%, but only about $300,000 at 7%.Higher rates affect home prices, inventory, rents, and buyer competition.🚪 Backdoor Roth IRA BasicsConfirm that you have no balance in any pre-tax traditional, rollover, SEP, or SIMPLE IRA.Make a nondeductible cash contribution to a traditional IRA.Convert the contribution to a Roth IRA, generally without tax withholding.Report the transaction correctly, including on IRS Form 8606.⚠️ The Pro Rata RuleThe IRS generally views your pre-tax IRAs as one combined balance.If pre-tax and after-tax dollars are mixed, a conversion will include a proportional share of each, potentially creating a tax bill.📅 Timing and Common MistakesCompleting the process early in the year can maximize time in the market. Contributions must be made in cash, not by transferring fund shares.Do not leave nondeductible contributions sitting unnecessarily in a traditional IRA.🎯 Commander’s IntentRun the numbers before deciding higher mortgage rates have priced you out.Consider the backdoor Roth process if your income prevents a direct Roth IRA contribution.Verify IRA balances, understand the pro rata rule, and ensure the transaction is reported correctly. When in doubt, work with a qualified tax or financial professional.🔗 ResourcesWinged Wealth Management and Financial PlanningMilitary Financial Advisors Associationhttps://getchipdrop.com/