IRA Contributions, Special Needs Trusts, Roth Conversions, and Cost Basis: Q&A #2518

May 3, 2025

Jim and Chris are joined by Jake and Paul to discuss tax-related listener questions on IRA contributions from self-employment income, special needs trusts, year-of-death Roth conversions, Cost Basis, and IRMAA.

(9:00) George asks how QBI and self-employed health insurance deductions affect how much he can contribute to a traditional IRA.
(20:00) Jim, Chris, Jake, and Paul respond to a question about whether creating multiple special needs trusts can multiply the $5,000 federal tax deduction.
(28:00) The guys weigh in on a year-of-death strategy involving large Roth conversions and other planning considerations for a surviving spouse.
(49:45) A listener wants to know how Form 8606 helps during retirement and when its tracking of after-tax basis becomes useful.
(57:00) George asks what documentation the IRS will accept to establish a 2001 cost basis for inherited land now worth significantly more.
(1:07:45) The team evaluates whether Roth conversions make sense for a retiree already in the third IRMAA tier.

Podcast: Play in new window | Download (Duration: 1:30:52 — 41.6MB)

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