2d ago

Traditional IRA Basis 8606 and Pro-Rata Rule

Today we explain how basis works inside a traditional IRA and why accurate recordkeeping matters. IRA basis is not the same as cost basis in a taxable investment account. It represents money that has already been taxed before entering the IRA. When we fail to track that amount correctly, we may pay tax on the same money twice when it is withdrawn. 📚 Get Bruce’s Book: Moving To Tax-Free (on Amazon) https://amzn.to/4msRo2k ⏱️ Chapters & Timestamps (00:00) Traditional IRA Basis and Double Taxation (01:27) How Traditional IRA Basis Is Created (02:49) The Pro-Rata Rule and Form 8606 (06:00) Why Traditional IRA Basis Does Not Grow (06:49) Exceptions to the Pro-Rata Rule (09:51) Basis in an Inherited IRA (11:10) Finding Basis on Prior Tax Returns Basis can enter a traditional IRA in several ways. We may make a nondeductible IRA contribution, often as part of a backdoor Roth strategy. We may also make a contribution that we expected to deduct, only to discover that our income was too high. Another common situation occurs when after tax 401(k) contributions are rolled into a traditional IRA without being separated from pretax funds. Once after tax money is mixed with other IRA assets, we generally cannot withdraw only the basis. The pro rata rule requires each distribution to include a proportional share of taxable and nontaxable money. Form 8606 calculates and reports that division. It also combines all traditional, SEP, and SIMPLE IRA balances when determining the taxable percentage. We cannot isolate basis by withdrawing from one particular IRA account. It's important to file Form 8606 consistently. Basis does not increase as the account grows. Investment growth remains tax deferred and will generally be taxable when distributed. The form creates an ongoing record of the amount that has already been taxed. That history can be lost when you change accountants or fail to file the form during a year without an IRA contribution or distribution. We also cover several transactions that receive different treatment, including rollovers, qualified charitable distributions, and a once in a lifetime qualified HSA funding distribution. IRA custodians do not track basis for us. The responsibility ultimately belongs to the taxpayer. Inherited IRAs create another important risk. Basis can transfer to the beneficiary, but the custodian may not provide that information. We may need to review the original owner’s prior tax returns and Form 8606 filings. When there are multiple beneficiaries, the basis is divided proportionally. Without those records, beneficiaries may incorrectly assume the entire inherited IRA is taxable. The central message is simple. We need to identify IRA basis, preserve the documentation, file Form 8606 correctly, and communicate with our tax and financial professionals. These steps can help us avoid unnecessary double taxation. For more information about anything related to your finances, contact Bruce Hosler and the team at Hosler Wealth Management: Visit us online at https://www.hoslerwm.com/ Contact Our Team: https://hoslerwm.com/contact-us/ Or call our Prescott office at (928) 778-7666 or our Scottsdale office at (480) 994-7342. For more podcast episodes, visit our podcast website at https://hoslerwm.com/protectingwealthpodcast/ Limitation of Liability Disclosures: https://www.hoslerwm.com/disclosures/ Link Disclosure: The information being provided is strictly as a courtesy. When you link to any of the websites provided here, you are leaving this website. We make no representation as to the completeness or accuracy of information provided at these websites. Nor is the company liable for any direct or indirect technical or system issues or any consequences arising out of your access to or your use of third-party technologies, websites, information, and programs made available through this website. When you access one of these websites, you are leaving our website and assume total responsibility and risk for your use of the websites you are linking to. Copyright © 2022-2026 Hosler Wealth Management | All Rights Reserved. Produced by JAG Podcast Productions - www.jagpodcastproductions.com. #ProtectingWealthPodcast #ProtectingandPreservingWealthPodcast #HoslerWealthManagement #BruceHosler

Sep 2

Inherited IRA Strategies - IRA, 401k, and Roth Conversion Planning

In this episode, we talk through the inherited IRA rules that changed under the SECURE Act and why many families still feel confused about required minimum distributions. The old stretch IRA rules allowed many beneficiaries to take distributions over their lifetime. Now, for most non-spouse beneficiaries, inherited IRA money has to come out within 10 years. That shift makes planning much more important, especially when taxes, Roth conversions, charitable giving, and family timing are all involved. 📚 Get Bruce’s Book: Moving To Tax-Free (on Amazon) https://amzn.to/4msRo2k ⏱️ Chapters & Timestamps (00:19) How the SECURE Act Changed Inherited IRAs (01:50) Three Types of IRA Beneficiaries (04:02) Required Beginning Date Rules (06:00) Spousal Rollover Options (07:03) Avoiding the 10% Early Withdrawal Penalty (09:09) Using Inherited IRAs for QCDs (11:38) Separate RMD Rules for Inherited IRAs (12:04) Paying Roth Conversion Taxes With IRA Funds We start by breaking down the three main beneficiary categories. Eligible designated beneficiaries usually include spouses, minor children under 21, disabled or chronically ill beneficiaries, and in some cases someone close in age to the original IRA owner. Non-eligible designated beneficiaries are usually adult children, nieces, nephews, or other individual heirs who do not qualify for the special carve outs. These beneficiaries generally fall under the 10-year rule. Non-designated beneficiaries are not people. That usually means an estate, charity, or certain trusts. We also explain how the required beginning date changes the rules. For many IRA owners, this is tied to age 73, or age 75 for those born after 1960. Roth IRAs are treated as if the owner died before the required beginning date. That detail matters because the timing of death can change whether annual RMDs are required during the 10-year period. A major strategy in this episode is for a younger surviving spouse. A widow under age 59 and a half may not want to immediately roll an inherited IRA into her own IRA. Keeping it as an inherited IRA may allow her to access funds without the 10 percent early withdrawal penalty. The withdrawals are still taxable as ordinary income, but that penalty exception can create flexibility during a difficult transition. We also cover qualified charitable distributions from inherited IRAs. If the beneficiary is at least 70 and a half, they may be able to make QCDs from an inherited IRA. For 2026, the annual QCD limit discussed is $111,000. This can help satisfy the inherited IRA distribution requirement while sending money directly to charity without creating taxable income. The final planning idea is using inherited IRA distributions to pay taxes on Roth conversions from a person’s own IRA. Since inherited IRAs generally cannot be converted to Roth IRAs, using those distributions to cover tax bills can preserve other retirement assets and support a long-term Roth conversion plan. The key takeaway is that inherited IRAs often need to be drained within 10 years, so it can make sense to use that money first for taxes, charitable giving, or cash flow. For more information about anything related to your finances, contact Bruce Hosler and the team at Hosler Wealth Management: Visit us online at https://www.hoslerwm.com/ Contact Our Team: https://hoslerwm.com/contact-us/ Or call our Prescott office at (928) 778-7666 or our Scottsdale office at (480) 994-7342. For more podcast episodes, visit our podcast website at https://hoslerwm.com/protectingwealthpodcast/ Limitation of Liability Disclosures: https://www.hoslerwm.com/disclosures/ Link Disclosure: The information being provided is strictly as a courtesy. When you link to any of the websites provided here, you are leaving this website. We make no representation as to the completeness or accuracy of information provided at these websites. Nor is the company liable for any direct or indirect technical or system issues or any consequences arising out of your access to or your use of third-party technologies, websites, information, and programs made available through this website. When you access one of these websites, you are leaving our website and assume total responsibility and risk for your use of the websites you are linking to. Copyright © 2022-2026 Hosler Wealth Management | All Rights Reserved. Produced by JAG Podcast Productions - www.jagpodcastproductions.com. #ProtectingWealthPodcast #ProtectingandPreservingWealthPodcast #HoslerWealthManagement #BruceHosler

Aug 19

Maximizing Social Security Benefits - Key Claiming Strategies

This episode focuses on how to maximize Social Security benefits by choosing the right claiming strategy. There is no single right age to claim. Health, income needs, savings, marital status, and long-term goals all matter. Some people may need to claim early because they do not have other income. Others may benefit from waiting, especially if they can afford to delay until age 70. 📚 Get Bruce’s Book: Moving To Tax-Free (on Amazon) https://amzn.to/4msRo2k ⏱️ Chapters & Timestamps (00:00) When Should You Claim Social Security? (03:03) Why Delaying Until 70 Can Pay Off (05:17) Planning for a Longer Retirement (07:03) Social Security Strategies for Couples (09:22) Protecting the Surviving Spouse (13:24) Medicare Premiums and IRMAA Deductions (14:42) Reviewing Your Social Security Statement (16:40) How Your Top 35 Earning Years Matter (17:54) Building a Coordinated Claiming Strategy (18:35) Reducing Taxes on Social Security Benefits The conversation makes a clear case for planning around longevity. Some clients assume they will not live long enough to justify delaying benefits. But with medical advances, better health tools, and longer life expectancies, planning only to age 85 can create risk. The bigger danger is not leaving money behind; it is living longer than expected and running out of income. That is why the team recommends planning for age 95 or even 100 when possible. A major takeaway is the value of delaying benefits after full retirement age. Once someone reaches full retirement age, around 67, Social Security benefits increase by 8% per year until age 70. That increase is not just for one year. It applies every year for the rest of that person’s life, and potentially for the surviving spouse’s life as well. The benefit is also inflation adjusted, which makes it one of the strongest guaranteed income sources available in retirement. Couples need to coordinate their claiming decisions. In many cases, the higher earning spouse should delay until age 70. That can protect the surviving spouse later. When one spouse dies, Social Security generally keeps the higher of the two benefits and removes the lower one. This means maximizing the higher benefit can create more lifetime income for both spouses. The episode also covers important details that can surprise retirees. Medicare premiums are often deducted from Social Security payments. Higher income can trigger IRMAA, which increases Medicare costs and reduces the net Social Security deposit. The team also encourages listeners to create and check their ssa.gov accounts, even if they are years away from retirement. That helps protect the account and gives people current benefit estimates. Finally, we look at taxes. Social Security can be taxable depending on provisional income, which includes wages, dividends, interest, municipal bond interest, and half of Social Security benefits. Roth IRA distributions do not count toward provisional income. That is why Roth conversions and tax-free income planning can reduce taxes on Social Security and help retirement income last longer. For more information about anything related to your finances, contact Bruce Hosler and the team at Hosler Wealth Management: Visit us online at https://www.hoslerwm.com/ Contact Our Team: https://hoslerwm.com/contact-us/ Or call our Prescott office at (928) 778-7666 or our Scottsdale office at (480) 994-7342. For more podcast episodes, visit our podcast website at https://hoslerwm.com/protectingwealthpodcast/ Limitation of Liability Disclosures: https://www.hoslerwm.com/disclosures/ Link Disclosure: The information being provided is strictly as a courtesy. When you link to any of the websites provided here, you are leaving this website. We make no representation as to the completeness or accuracy of information provided at these websites. Nor is the company liable for any direct or indirect technical or system issues or any consequences arising out of your access to or your use of third-party technologies, websites, information, and programs made available through this website. When you access one of these websites, you are leaving our website and assume total responsibility and risk for your use of the websites you are linking to. Copyright © 2022-2026 Hosler Wealth Management | All Rights Reserved. Produced by JAG Podcast Productions - www.jagpodcastproductions.com. #ProtectingWealthPodcast #ProtectingandPreservingWealthPodcast #HoslerWealthManagement #BruceHosler

Aug 5

Private Investments

In this episode, we look at the growing role of private investments* and why investors may need to rethink the way they build portfolios. The public markets have changed in a major way. Years ago, there were more than 8,000 publicly traded companies in the United States. Today, that number is closer to 4,200. At the same time, business creation is strong, and many large companies are choosing to stay private much longer than they used to. That means some of the growth that once happened in the public markets now happens before everyday investors ever get access. 📚 Get Bruce’s Book: Moving To Tax-Free (on Amazon) https://amzn.to/4msRo2k ⏱️ Chapters & Timestamps (00:17) Why More Companies Are Staying Private (03:21) Liquidity in Public and Private Markets (04:57) Market Concentration and Diversification (05:42) Why Consider Private Equity (07:05) Potential Benefits of Private Investments (08:08) Interval Funds and Return Expectations (09:21) Infrastructure and Venture Capital (11:56) Higher Fees and Limited Liquidity (13:47) How Much Could Belong in a Portfolio (14:49) Long-Term Holding Expectations We talk about how this shift has created a much larger private market opportunity. Jason explains that unicorn companies, which are private companies valued at more than $1 billion, have grown sharply since 2016. Companies like SpaceX and OpenAI are examples of businesses that may remain private for a long time before eventually going public. The reason is simple. Many owners now prefer the control, flexibility, and funding options that come with staying private. We also explain the main difference between public and private investments. Stocks, bonds, and crypto markets provide daily liquidity. Investors can buy and sell quickly. Private investments do not work that way. Like real estate or a privately held business, they may have value, but they are not easy to sell overnight. That lack of liquidity can be a drawback, but it can also reduce daily volatility. Private investments may help diversify a portfolio because they often do not move in the same way as public stocks and bonds. Alex explains that private equity, infrastructure, venture capital, and other private market investments may offer access to areas of growth that were once unavailable to many investors. These investments may also provide the potential for strong long term returns, especially when used as a small part of a broader portfolio. We also cover the risks. Private investments usually have higher fees than index funds or traditional mutual funds. They also require patience. Investors need to think carefully about how much money they may need over the next 5 to 10 years before committing funds to an illiquid asset. The team generally recommends considering an allocation of 5% to 20%, depending on risk tolerance, liquidity needs, and long term goals. The main point is that private investments are not for short term money. They belong in the long term bucket of a financial plan. Used carefully, they may offer access to opportunities outside the traditional stock and bond markets while helping broaden diversification. Every investor should at least ask whether private investments belong in their portfolio. *Private Investment Disclosure: Private investments involve significant risk, limited liquidity, higher fees, valuation uncertainty, and possible loss of principal. Redemptions may be restricted or unavailable, and past or projected performance is not guaranteed. Eligibility requirements may apply. This material is educational only and is not an offer, recommendation, or legal, tax, or investment advice. For more information about anything related to your finances, contact Bruce Hosler and the team at Hosler Wealth Management: Visit us online at https://www.hoslerwm.com/ Contact Our Team: https://hoslerwm.com/contact-us/ Or call our Prescott office at (928) 778-7666 or our Scottsdale office at (480) 994-7342. For more podcast episodes, visit our podcast website at https://hoslerwm.com/protectingwealthpodcast/ Limitation of Liability Disclosures: https://www.hoslerwm.com/disclosures/ Link Disclosure: The information being provided is strictly as a courtesy. When you link to any of the websites provided here, you are leaving this website. We make no representation as to the completeness or accuracy of information provided at these websites. Nor is the company liable for any direct or indirect technical or system issues or any consequences arising out of your access to or your use of third-party technologies, websites, information, and programs made available through this website. When you access one of these websites, you are leaving our website and assume total responsibility and risk for your use of the websites you are linking to. Copyright © 2022-2026 Hosler Wealth Management | All Rights Reserved. Produced by JAG Podcast Productions - www.jagpodcastproductions.com. #ProtectingWealthPodcast #ProtectingandPreservingWealthPodcast #HoslerWealthManagement #BruceHosler

Jul 15

In-Kind Roth Conversions When The Market Dips

In this episode of Protecting and Preserving Wealth, we talk about how market volatility can create planning opportunities, especially through in-kind Roth IRA conversions. The focus is on using market dips to move investments from a traditional IRA into a Roth IRA at a temporarily lower value. The goal is to reduce the taxable amount of the conversion while allowing the rebound to happen inside the Roth, where future growth may be tax-free. 📚 Get Bruce’s Book: Moving To Tax-Free (on Amazon) https://amzn.to/4msRo2k ⏱️ Chapters & Timestamps (00:00) Welcome and gifting topic (00:41) Lifetime gifting for families (02:16) Start with the financial plan (02:53) 2026 gift and estate limits (03:22) Avoid gift splitting mistakes (05:17) 529 plan front-loading (06:25) Appreciated asset caution (08:00) Donor-advised fund strategy (10:17) Gifting above annual limits (14:24) Control after gifting Bruce explains the strategy with a simple example. If a stock like Nvidia is held in an IRA and drops 10%, the shares can be transferred directly into a Roth IRA without being sold. That is the in-kind conversion. If the investment was worth $100,000 before the dip and falls to $90,000, only $90,000 is recognized for tax purposes when it is converted. If it later recovers to $100,000 inside the Roth, that $10,000 recovery happens in the tax-free account. Bruce describes this as a $20,000 tax-free move because the client avoids converting at the higher value and captures the recovery inside the Roth. Alex adds that market dips are common. Historically, the S&P 500 has averaged a drawdown of about 14% to 15% in a year. That does not mean a dip is guaranteed every year, but it does mean investors can prepare for those opportunities. The assets that tend to work best for this strategy are growth-oriented investments, such as stocks, ETFs, and mutual funds. These are the assets that usually experience more volatility and may have more room to recover after a decline. Bruce also explains that preparation matters. Clients who are old enough to take required minimum distributions must take their RMD before doing a Roth conversion. He recommends getting RMDs done early in the year so the conversion opportunity is not delayed. A tax plan should also be completed in advance so the client knows how much they want to convert without creating unwanted tax issues, higher brackets, or IRMAA penalties. The conversation also covers what Bruce calls the “November list.” This is a strategy for paying taxes later in the year through IRA withholding. Instead of making estimated payments earlier, some clients wait until November and have taxes withheld from an IRA distribution. Bruce says the IRS treats that withholding as if it had been paid evenly throughout the year. This allows the funds to remain invested longer before the tax payment is made. Alex notes that Roth conversions can be useful not only for retirement planning but also for legacy planning. Roth accounts may benefit spouses and heirs because the growth can be tax-free. He also points out that conversions do not always need to be large. Smaller strategic conversions during market dips can add up over time. Bruce closes by explaining that many advisors wait until the end of the year to decide on Roth conversions. Hosler Wealth Management takes a more proactive approach by planning ahead, identifying the conversion amount, and being ready when a market dip occurs. The episode emphasizes that while no one can perfectly time the market, being prepared can make volatility work in a client’s favor. For more information about anything related to your finances, contact Bruce Hosler and the team at Hosler Wealth Management: Visit us online at https://www.hoslerwm.com/ Contact Our Team: https://hoslerwm.com/contact-us/ Or call our Prescott office at (928) 778-7666 or our Scottsdale office at (480) 994-7342. For more podcast episodes, visit our podcast website at https://hoslerwm.com/protectingwealthpodcast/ Limitation of Liability Disclosures: https://www.hoslerwm.com/disclosures/ Link Disclosure: The information being provided is strictly as a courtesy. When you link to any of the websites provided here, you are leaving this website. We make no representation as to the completeness or accuracy of information provided at these websites. Nor is the company liable for any direct or indirect technical or system issues or any consequences arising out of your access to or your use of third-party technologies, websites, information, and programs made available through this website. When you access one of these websites, you are leaving our website and assume total responsibility and risk for your use of the websites you are linking to. Copyright © 2022-2026 Hosler Wealth Management | All Rights Reserved. Produced by JAG Podcast Productions - www.jagpodcastproductions.com. #ProtectingWealthPodcast #ProtectingandPreservingWealthPodcast #HoslerWealthManagement #BruceHosler

Jul 1

Lifetime Gifting Strategies For Successful Families

Lifetime gifting strategies are how financially successful families can pass wealth to the next generation while still alive. Gifting is not just for the ultra-wealthy. It is a practical tool for families who want to see their children benefit from their financial success in real time. Having a foundational financial plan allows us to determine how much can be gifted without putting retirement at risk. 📚 Get Bruce’s Book: Moving To Tax-Free (on Amazon) https://amzn.to/4msRo2k Today we break down the current gifting rules and highlight that the annual gift exclusion is $19,000 per recipient. We warn against gift splitting with a single check because it triggers a gift tax return that must be maintained permanently. Instead, each spouse should gift separately to avoid unnecessary paperwork. Also, there is no limit on the number of recipients, which allows families to spread wealth efficiently without tax consequences. Gifting often comes at critical life moments such as buying a home, starting a family, or making a career move. These are times when financial support can have the greatest impact. 529 plans are also a powerful strategy; families can front-load up to five years of gifts into these accounts, allowing for significant tax-free growth while supporting education. We caution against gifting appreciated assets like stocks or real estate because recipients inherit the original cost basis and may face capital gains taxes. Instead, we suggest using those assets for charitable giving through donor-advised funds (DAFs). These allow families to receive a tax deduction, avoid capital gains, and involve future generations in philanthropy. We also address estate tax planning for larger estates. We explain that amounts above the exemption threshold can face a 40% tax, so strategic gifting can reduce future tax burdens. Even gifting above the annual limit can be beneficial if properly reported. We close by discussing the emotional side of gifting. We explain that parents must balance generosity with letting their children learn from experience. We stress the value of financial guidance for the next generation and the importance of preparing them to manage wealth responsibly. Ultimately, we highlight that lifetime gifting is not just about tax efficiency. It is about creating meaningful impact and strengthening family legacy. ⏱️ Chapters & Timestamps (01:44) Supporting Children at Key Life Moments (02:16) Financial Planning Before Gifting (03:00) Gift Tax Rules and Common Mistakes (05:17) 529 Plans and Front-Loading Strategy (06:25) Risks of Gifting Appreciated Assets (08:00) Donor Advised Funds Explained (10:17) Estate Tax Strategy for Large Estates (14:24) Letting Children Learn Financial Lessons (17:52) Privacy and Financial Guidance (18:32) How to Contact Hosler Wealth Management For more information about anything related to your finances, contact Bruce Hosler and the team at Hosler Wealth Management: Visit us online at https://www.hoslerwm.com/ Contact Our Team: https://hoslerwm.com/contact-us/ Or call our Prescott office at (928) 778-7666 or our Scottsdale office at (480) 994-7342. For more podcast episodes, visit our podcast website at https://hoslerwm.com/protectingwealthpodcast/ Limitation of Liability Disclosures: https://www.hoslerwm.com/disclosures/ Link Disclosure: The information being provided is strictly as a courtesy. When you link to any of the websites provided here, you are leaving this website. We make no representation as to the completeness or accuracy of information provided at these websites. Nor is the company liable for any direct or indirect technical or system issues or any consequences arising out of your access to or your use of third-party technologies, websites, information, and programs made available through this website. When you access one of these websites, you are leaving our website and assume total responsibility and risk for your use of the websites you are linking to. Copyright © 2022-2026 Hosler Wealth Management | All Rights Reserved. Produced by JAG Podcast Productions - www.jagpodcastproductions.com. #ProtectingWealthPodcast #ProtectingandPreservingWealthPodcast #HoslerWealthManagement #BruceHosler

Jun 17

The Foundational Financial Plan™

Today we discuss the idea of a foundational financial plan and explain why it is essential for anyone preparing for retirement or managing long term wealth. This is a comprehensive system that brings together multiple areas of financial life into one coordinated strategy. Without a clear plan, people are often guessing about their future instead of making informed decisions. At Hosler Wealth Management, the plan is broken down into 7 areas: Retirement Income Plan Tax Planning and Roth Conversion Estate, Legacy, and Beneficiary Planning Social Security Strategies Insurance Planning Risk Analysis Investment Plan We start by breaking down the first component, which is a dynamic retirement income plan powered by advanced financial planning software. Tools like Monte Carlo simulations run thousands of scenarios to estimate the probability of success. This allows us to adjust for real world variables like inflation, taxes, and market volatility. This replaces outdated methods like spreadsheets and gives clients clarity when making decisions such as increasing spending or buying a second home. We then move into tax planning and Roth conversion strategies, challenging the traditional belief that tax deferred accounts are always the best option. Future tax rates may be higher and that proactive planning today can help move assets into tax free environments. Strategic use of current tax brackets can improve long term outcomes. Next, we cover estate planning and beneficiary strategies, explaining the importance of avoiding probate, properly titling assets, and ensuring documents like trusts and powers of attorney are in place. We also discuss how new technology and AI tools can review estate documents for errors and gaps, improving efficiency and accuracy. We highlight the importance of proper trust funding and tax advantages like step up in cost basis. Social security planning: thousands of claiming strategies exist and decisions should consider both financial outcomes and personal health factors. Timing and coordination with other income sources are critical. We then address insurance planning, focusing on long-term care and newer asset-based strategies that provide more stability. Life insurance can be a tool for creating tax free income in retirement. Finally, we explain risk analysis and investment planning. Modern tools assign a numerical risk score and align portfolios accordingly. We outline a bucket strategy that separates short term income needs from long-term growth investments, helping clients manage risk while still pursuing returns. Having this full plan in place provides confidence and peace of mind because clients can clearly see their financial future and make informed decisions. 📚 Get Bruce’s Book: Moving To Tax-Free (on Amazon) https://amzn.to/4msRo2k ⏱️ Chapters & Timestamps (00:00) Intro (00:21) What a “Real” Financial Plan Should Include (02:46) Why Excel Can’t Plan Your Retirement (03:35) The Power of “What If” Planning (04:22) Can You Actually Spend More in Retirement? (05:22) The Tax Trap That Could Cost You Thousands (06:43) Estate Planning Mistakes That Hurt Families (07:01) The Documents Everyone Needs (But Most Don’t Have) (09:21) How AI Is Changing Estate Planning (09:32) The Most Common (and Costly) Trust Mistake (11:17) Social Security Strategies Nobody Talks About (14:58) Are You Taking the Wrong Amount of Risk? (17:04) Why Planning = Peace of Mind (18:00) How to Get Help from Hosler Wealth Management For more information about anything related to your finances, contact Bruce Hosler and the team at Hosler Wealth Management: Visit us online at https://www.hoslerwm.com/ Contact Our Team: https://hoslerwm.com/contact-us/ Or call our Prescott office at (928) 778-7666 or our Scottsdale office at (480) 994-7342. For more podcast episodes, visit our podcast website at https://hoslerwm.com/protectingwealthpodcast/ Limitation of Liability Disclosures: https://www.hoslerwm.com/disclosures/ Link Disclosure: The information being provided is strictly as a courtesy. When you link to any of the websites provided here, you are leaving this website. We make no representation as to the completeness or accuracy of information provided at these websites. Nor is the company liable for any direct or indirect technical or system issues or any consequences arising out of your access to or your use of third-party technologies, websites, information, and programs made available through this website. When you access one of these websites, you are leaving our website and assume total responsibility and risk for your use of the websites you are linking to. Copyright © 2022-2026 Hosler Wealth Management | All Rights Reserved. Produced by JAG Podcast Productions - www.jagpodcastproductions.com. #ProtectingWealthPodcast #ProtectingandPreservingWealthPodcast #HoslerWealthManagement #BruceHosler

Jun 3

Grandparents, Be Very Careful When Opening Trump Accounts!

In this episode of Protecting and Preserving Wealth, we talk about the new Trump accounts and why grandparents need to be careful before trying to open one for a grandchild. The team is excited about the concept because these accounts could help young people learn about investing early, build long-term wealth, and become more financially aware. But the main warning is clear: grandparents should not rush to open these accounts themselves. 📚 Get Bruce’s Book: Moving To Tax-Free (on Amazon) https://amzn.to/4msRo2k ⏱️ Chapters & Timestamps (00:00) Intro (00:34) Why Bruce likes the idea of Trump accounts (01:17) Why grandparents need to be careful (02:17) Who can open accounts for children born after January 1, 2025 (03:30) Rules for children born before January 1, 2025 (04:15) Penalty of perjury concerns (06:40) What grandparents should do instead (08:01) Using Trump accounts to start family financial conversations (09:18) Tax planning opportunity with Roth conversions (10:45) Teaching children not to spend the account (12:09) How to contact Hosler Wealth Management Bruce explains that while grandparents may be eager to help, the proposed rules create a specific order for who can establish a Trump account. For children born on or after January 1, 2025, parents or legal guardians are generally the ones who should open the account. A grandparent may only be able to open one if the child is their dependent or they are the legal guardian. For children born before January 1, 2025, grandparents are even further down the line. A legal guardian, parent, or adult sibling would generally have priority before a grandparent could step in. The concern is that the form may not clearly warn grandparents about what they are certifying. If a grandparent opens the account when someone with higher authority is available, they may be making a statement under penalty of perjury. That is why Bruce urges listeners to wait for clearer IRS guidance before taking action. The practical message is simple. Parents should open the account after July 4, 2026, and grandparents can help by contributing. The team discusses the possibility of contributing up to $5,000 a year and using broad stock market indexes such as the S&P 500 or NASDAQ 100. They also emphasize that the account can create a powerful opportunity for long-term growth. Bruce closes by explaining the tax planning angle. If the account grows until the child turns 18 and then converts into a traditional IRA, there may be a window when the young adult is in a low tax bracket. That could create an opportunity to convert the account to a Roth IRA and let the money grow tax-free for decades. The key is teaching the child to treat the account as retirement money, not spending money. The broader takeaway is that Trump accounts may become a useful wealth-building tool, but families should understand the rules before acting. They should also use the topic as a chance to talk across generations about saving, investing, taxes, and long-term financial planning. For more information about anything related to your finances, contact Bruce Hosler and the team at Hosler Wealth Management: Visit us online at https://www.hoslerwm.com/ Contact Our Team: https://hoslerwm.com/contact-us/ Or call our Prescott office at (928) 778-7666 or our Scottsdale office at (480) 994-7342. For more podcast episodes, visit our podcast website at https://hoslerwm.com/protectingwealthpodcast/ Limitation of Liability Disclosures: https://www.hoslerwm.com/disclosures/ Link Disclosure: The information being provided is strictly as a courtesy. When you link to any of the websites provided here, you are leaving this website. We make no representation as to the completeness or accuracy of information provided at these websites. Nor is the company liable for any direct or indirect technical or system issues or any consequences arising out of your access to or your use of third-party technologies, websites, information, and programs made available through this website. When you access one of these websites, you are leaving our website and assume total responsibility and risk for your use of the websites you are linking to. Copyright © 2022-2026 Hosler Wealth Management | All Rights Reserved. Produced by JAG Podcast Productions - www.jagpodcastproductions.com. #ProtectingWealthPodcast #ProtectingandPreservingWealthPodcast #HoslerWealthManagement #BruceHosler

Protecting & Preserving Wealth

Traditional IRA Basis 8606 and Pro-Rata Rule

Inherited IRA Strategies - IRA, 401k, and Roth Conversion Planning

Maximizing Social Security Benefits - Key Claiming Strategies

Private Investments

In-Kind Roth Conversions When The Market Dips

Lifetime Gifting Strategies For Successful Families

The Foundational Financial Plan™

Grandparents, Be Very Careful When Opening Trump Accounts!

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Protecting & Preserving Wealth

Episodes

Traditional IRA Basis 8606 and Pro-Rata Rule

Inherited IRA Strategies - IRA, 401k, and Roth Conversion Planning

Maximizing Social Security Benefits - Key Claiming Strategies

Private Investments

In-Kind Roth Conversions When The Market Dips

Lifetime Gifting Strategies For Successful Families

The Foundational Financial Plan™

Grandparents, Be Very Careful When Opening Trump Accounts!

Trailer

About

Information