Three Ways the Solo 401(k) Supports Financial Independence

Financial independence encourages thinking about one’s financial future in a different way. You were told to “build a career and retire at age 65.” Financial independence says you should write your own financial script. The system, your parents, and a ...

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Baby HSA

Are you married? Age 55 or older? You might have an opportunity to open up a small health savings account and get a $1,000 annual tax deduction! HSA Contribution Limits Health Savings Accounts (“HSAs”) have annual contribution limits. The limits depend...

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TikTok Tax Advice

There’s tax advice available on TikTok. Is it worth following? Does it miss the big picture? Retirement Saving Through Various Forms of Life Insurance TikTok tax advice often boils down to something like the following: don’t save in traditional retirem...

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The Mystery of the Disappearing Tax Basis

Tax loss harvesting is all the rage in a down stock market. Did you know that it can create a mystery worthy of the Hardy Boys? Read on to find out how tax basis can disappear because of tax loss harvesting and the wash sale rule.  Tax Loss Harves...

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Four Ways to Fight Inflation

Decisions you make today can subject you to more inflation tomorrow! Read below about ways to increase or decrease your exposure to inflation tomorrow. Tax Planning As a practical matter, most Americans have the majority of their retirement savings in ...

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The Tax Increase in SECURE 2.0

There’s a tax increase in the new SECURE Act 2.0 legislation. Unfortunately, it falls largely on those least equipped to shoulder it. Catch-Up Contributions Since enacted in 2001, “catch-up” contributions have been a great feature of ...

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The Four Backstops to the Four Percent Rule

Introduction Worried about an early retirement based on the Four Percent Rule? Might the 4% Rule work because of natural backstops most early retirees enjoy?  The 4% Rule The 4% Rule is a rule of thumb developed by the FI community. For example, J...

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House Passes SECURE Act 2.0

It appears some changes are likely coming to the tax-advantaged retirement savings landscape, as the House of Representatives passed (by a 414-5 vote) the Securing a Strong Retirement Act of 2021. It now goes the Senate where the Senate Finance Committ...

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Early Retirement and Social Security

I can’t retire early! I’ll destroy my Social Security! Is that true? What happens to Social Security benefits when retirees retire early? Are significantly reduced Social Security benefits a drawback of the financial independence retire early (FIRE) mo...

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Two New Personal Finance Videos

To celebrate my new YouTube Channel’s one month anniversary, I posted two new videos this weekend. Enjoy! You may notice some new background art, which I purchased from the StolitronArtDesign Etsy store. FI Tax Guy can be your financial planner! ...

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Recipe for Reporting a Backdoor Roth IRA

When it comes to the Backdoor Roth IRA, I’ve seen it all. Reporting a Backdoor Roth IRA on tax returns remains confusing for both taxpayers and tax return preparers. Here’s the recipe I recommend using to report the Backdoor Roth IRA on the tax return ...

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Sean on the Stacking Benjamins Podcast

I talk tax with Joe Saul-Sehy on today’s episode of the Stacking Benjamins podcast. Available on YouTube and all major podcast players. https://www.stackingbenjamins.com/stories-from-our-stackers-1158/ This post, podcast, and video are for entert...

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Sean Launches YouTube Channel

Enjoy videos on my brand new YouTube Channel. The channel will focus on tax and personal finance topics. I have ten tax videos up there to watch. My goal is to post a new tax or personal finance video every Saturday morning at 7AM Pacific. Highlights i...

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What are Section 199A Dividends?

Did you receive a Form 1099-DIV which lists an amount in Box 5 “Section 199A dividends”? If so, you might be asking, what the heck are Section 199A dividends?  You probably never came across the term “Section 199A dividends” in high school algebra...

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72(t) Series of Substantially Equal Periodic Payments Update

The IRS and Treasury have recently issued two updates to the rules for payments which avoid the 10 percent early withdrawal penalty from retirement accounts. These payments are referred to as a series of substantially equal periodic payments, SEPP, or ...

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2022 Backdoor Roth IRA

The Backdoor Roth IRA lives! The proposal to repeal the Backdoor Roth IRA as of January 1, 2022 will not be enacted in 2021, as it is now abundantly clear that the Build Back Better legislative program will not be enacted anytime soon.  But could ...

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The End of the End of the Backdoor Roth IRA?

There’s an early Christmas present for tax efficient investors. The proposal to end the Backdoor Roth IRA is on life support, and as of now (December 18, 2021) it appears that even if the proposal passes, it will not pass until 2022 at the earliest. La...

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FI Tax Guy Featured on the Optimal Finance Daily Podcast

Today and tomorrow my year-end tax planning post will be featured on the Optimal Finance Daily podcast. Listen to today’s episode on podcast players and here. Read my year-end tax planning blog post here. FI Tax Guy can be your financial planner!...

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