A lot of Cash leaving the bank account today...

[StarTrekDoc]

I paid my property tax last month. $4000.

Joys of California -- $25,000 for the year. ouch.

[runfast00]

wow and you didn't even cover the backdoor Roth

I didn't think I could do BDR since I am self employed for my main gig and have a SIMPLE [convert it all to Roth before Dec 31 using pre-existing Roth IRA].
And for my side gig I have an i401k for MBDR.

IF you think I can still contribute to traditional IRA and roll it over to Roth IRA [BDR], given my particulars I'm all ears.

[JBME]

I didn't think I could do BDR since I am self employed for my main gig and have a SIMPLE [convert it all to Roth before Dec 31 using pre-existing Roth IRA].
And for my side gig I have an i401k for MBDR.

IF you think I can still contribute to traditional IRA and roll it over to Roth IRA [BDR], given my particulars I'm all ears.

Why are you using a simple? Is your main gig affiliated with your side gig? Can you open a 401k for each and then roll the simple into your i401k so you can do backdoor Roth and not worry about pro rata? Perhaps others can also chime in

[Tim]

See ibond threads. Yes, inflation for now and foreseeable rises in rates that bonds will peg onto. The rates will eventually catch up so have to know your thresholds for exiting, if any.

No property taxes for anyone? Thats the biggest line item for us in Dec+March. Bookends all the expenses

A little off track on cash flows, but-
With the potential of some modification of the SALT tax, this plays into current year tax deductions and potential changes. All states have property taxes. I can see a compromise in the $10k limit that could change. The political debate was regarding income taxes, property taxes hit all states. I have delayed property taxes until 2022 so I have the potential of two years in 2022. Makes a difference of itemizing vs standard deduction. January 31,2022 is our deadline. I will know if December 31, 2022 needs to be paid. I wish our government would at least let me know the rules and not change them on the fly. (SECURE!)

[runfast00]

Why are you using a simple? Is your main gig affiliated with your side gig? Can you open a 401k for each and then roll the simple into your i401k so you can do backdoor Roth and not worry about pro rata? Perhaps others can also chime in

Our group private practice has had a simple because it was the best for our situation. We are looking into moving into a 401k for 2023, however to be in the safe harbor with highly compensated employees we need to weigh cost of adding retirement benefits vs how much the owners want to get extra money into 401k over a SIMPLE.

[jfoxcpacfp]

I didn't think I could do BDR since I am self employed for my main gig and have a SIMPLE [convert it all to Roth before Dec 31 using pre-existing Roth IRA].
And for my side gig I have an i401k for MBDR.

IF you think I can still contribute to traditional IRA and roll it over to Roth IRA [BDR], given my particulars I'm all ears.

To clarify, are you saying you convert your SIMPLE balance to a Roth annually before 12/31? Barring any other pre-tax IRAs, I don’t understand what’s keeping you from BD Roth. Of course, assuming you’ve participated in SIMPLE for > 2 yrs.

But, if the above is true, I also don’t understand why the pro-rata tax is a concern if you are already converting your SIMPLE to a Roth each year and paying tax on the conversion. What’s the big deal?

[runfast00]

To clarify, are you saying you convert your SIMPLE balance to a Roth annually before 12/31? Barring any other pre-tax IRAs, I don’t understand what’s keeping you from BD Roth. Of course, assuming you’ve participated in SIMPLE for > 2 yrs.

But, if the above is true, I also don’t understand why the pro-rata tax is a concern if you are already converting your SIMPLE to a Roth each year and paying tax on the conversion. What’s the big deal?

Yes, my SIMPLE originated in 2011 [>2 years ago]. I make the balance 0 on 12/31 by EITHER Converting it to Roth and paying the tax OR rolling into my pre-tax i401k that accepts roll overs. The determination to do either path depends on the my tax situation in that year.

We have a general accountant for the business, but he is not a retirement expert/specialist. Perhaps it would do me good to get a second opinion on my situation as I may be leaving more than BDR on the table...