MoneyRx for CRNAs
Go behind the scenes with host Brett Fellows, CFP®, as he explores the unique opportunities and challenges facing Certified Registered Nurse Anesthetists along the path to financial independence. In each episode, Brett shares expert insights and actionable advice, equipping you with the tools you need to take control of your financial destiny and retire on your terms.
MoneyRx for CRNAs
Why Traditional (Pre-Tax) Retirement Savings Could Be a Financial Disaster for 1099 CRNAs
What if what worked for your parents' retirement could be a financial disaster for yours? For many CRNAs, traditional pre-tax retirement savings could be a ticking time bomb. With the Secure Act, historically low tax rates, and a massive wealth transfer on the horizon, the old rules of retirement planning have changed dramatically.
In this episode, we reveal why traditional pre-tax contributions are essentially an IRS loan that you'll pay back at unknown future tax rates.
Brett explores:
- Why a traditional pre-tax contribution is not a real deduction, but rather a "fake deduction."
- How the Secure Act eliminated the "stretch IRA," making traditional accounts the worst asset for wealth transfer.
- The QBI deduction problem that uniquely affects 1099 CRNAs.
- The $37 trillion wealth transfer from baby boomers and why it's a "tax time bomb" for beneficiaries.
- A real-world case study showing how Roth conversions created an "$868,000 swing" in a CRNA couple's wealth.
- Why Roth accounts give you the control and certainty you need in retirement.
By the end of this episode, you’ll have the knowledge to build a tax-efficient retirement plan on your terms, not the government’s.
Key Timestamps:
(0:52) Welcome and the potential disaster of traditional savings
(2:30) The overview of a solo 401k and Roth contributions
(4:30) The "fake deduction" argument - why pre-tax is an IRS loan
(10:00) The problem with employer contributions and historical tax rates
(15:00) The QBI deduction problem for 1099 CRNAs
(19:30) Why "lower rates in retirement" thinking is flawed
(21:30) The $37 trillion wealth transfer tax time bomb
(25:30) How Roth conversions create certainty and control
(28:30) A real-world case study with Reggie and Regina
(34:30) Key takeaways and action steps
(35:30) The final message on control and certainty
#CRNAs #RetirementPlanning #Roth #TaxStrategy #Solo401k
For more information and resources related to this episode, please visit the show notes.