Sean Mullaney's Blog, page 2

FI Tax Strategies for Beginners

New to financial independence (FI or FIRE)? Are you steeped in financial independence, but confused about tax optimization? If so, this is the post for you. It’s not “comprehensive tax planning for FI” but rather an initial primer on some basic financial independence tax planning tactics. I believe the three tactics here are the most […]

Tax Basketing To and Through Early Retirement

What some call “tax basketing” and others call “asset location” is becoming increasingly important, particularly for early retirees and those aspiring to be early retirees. Tax basketing is not portfolio allocation. Tax basketing is the step after portfolio allocation. First the investor decides the assets he or she wants to invest in and in what proportion. […]

Protecting the Constitution and Workers Saving for Retirement

Retirement planning rarely intersects with the Constitution. SECURE 2.0, the component of the late December 2022 Omnibus bill with dozens of retirement account rule changes, does. As discussed by Judge James W. Hendrix in his excellent opinion in Texas v. Garland, the House of Representatives used proxies to establish a quorum to pass the Omnibus, […]

2024 Backdoor Roth IRA in 2025

Did you know that If you’re reading this before April 16, 2025 (before October 16, 2025 if you live in Los Angeles), it’s still possible to do a 2024 Backdoor Roth IRA? Yes, it is absolutely possible. I refer to it as a Split-Year Backdoor Roth IRA. Below I go through an example with a […]

Three Problems with Roth Solo 401(k) Employer Contributions

Late 2022 ushered in a new type of contribution to Solo 401(k)s: Roth employer contributions. Traditional employee and employer contributions have been available for all of the Solo 401(k)’s post-EGTRRA history. Roth employee contributions have been available since 2006, even if plan providers were slow to adopt them.  Should the availability of Roth employer contributions change […]

Los Angeles Tax Delay

The 2025 fires in Los Angeles have been devastating. My heart goes out to all those affected, and you are in my prayers.   Los Angeles County now has a deadline delay for their 2024 tax returns, 2024 and 2025 tax payments, and IRA contributions.  Los Angeles County Tax Deadline Delay The IRS announced that because […]

Backdoor Roth IRA Timing

Happy New Year! It’s Backdoor Roth IRA season, so let’s talk about the issue that refuses to go away . . . the timing of the two steps of the Backdoor Roth IRA.  Recall that the Backdoor Roth IRA is a two-step transaction. First, there is a nondeductible contribution to a traditional IRA. The second […]

2025 IRA Contributions for Beginners

There are only three types of annual contributions to individual retirement accounts (“IRAs”). They are: This post discusses when a taxpayer can make one or more of these types of annual contributions. Let’s dispense with what we are not talking about. This post has nothing to do with annual contributions to employer retirement plans (401(k)s […]

The Constitution or Delayed RMDs?

The Constitution or delayed RMDs? Incredibly, Donald Trump has signed up to make that choice, starting January 20th. How can that be? It relates to SECURE 2.0. SECURE 2.0 made dozens of additions to the already complicated retirement account rules. Many like its delaying retirement account required minimum distributions (“RMDs”) for many Americans from age […]

2025 Solo 401(k) Update

Before we explore new developments for 2025, 2024 was so chock full of Solo 401(k) developments that it deserves its own rundown. Then we will move onto 2025 Solo 401(k) changes.  Vanguard Out! Vanguard transferred all of their Solo 401(k) accounts to Ascensus in 2024. Vanguard is now entirely out of the Solo 401(k) business. […]