What is backdoor Roth IRA
A Roth backdoor entry is a bypass to get around income limits to participate in Roth IRA. The other key aspect of this backdoor is that there are no conversion limits so you can convert any amount as long as it is…
How most H1-B holders make a 6 figure money mistake
I started my career in the US in an offshore based system integrator where a majority of the people working were on H1-B visas. The six years, that I worked there, I use to wonder why most of the expats in the…
Should I fund an HSA before an IRA
Many HSA advocates recommend funding an HSA before an IRA. There are several reasons to recommend this strategy but is this a rule of thumb applicable to all? Let’s evaluate An HSA offers triple tax breaks. Money goes in rax-free, grows tax-deferred and withdrawals…
What is Required Minimum Distribution (RMD)
RMD is the minimum amount that the US Govt forces you to withdraw from your pre-tax accounts (401k or IRA) annually once you have reached an age of 70 1/2. You can always withdraw more than the required minimum but withdrawing less…
Transunion Credit Freeze
I noticed something had changed on the TransUnion website about freezing credit this morning when I was giving links to family so they could freeze theirs. I froze my credit the day after news about the Equifax breach broke, and it looks…
What is FIRE
FIRE refers to Financial Independence and Retiring Early. Financial independence refers to having enough money that you can stop working or money. It doesn’t mean that you cannot work but it means that you are no longer dependent on your job (of…