Roth IRA with Fexingo: Tax-Free Retirement Accounts and Long-Term Investment Strategy

Episode 79 of Roth IRA with Fexingo dives into the five-year rule and qualified distribution criteria — the most misunderstood exit rules in retirement planning. Lucas and Luna walk through the difference between contribution withdrawals and earnings withdrawals, why the five-year clock starts ticking with your first contribution, and how a concrete example of a $50,000 distribution works under th...

In this episode, Lucas and Luna explore a little-known strategy: using Roth IRA contributions to pay for a child's college expenses without triggering the 10 percent early withdrawal penalty. They walk through the specific IRS rule — Section 72(t)(2)(E) — that allows penalty-free withdrawals for qualified higher education expenses, but emphasize that only contributions (not earnings) can be withdr...

Episode 77 of Roth IRA with Fexingo tackles a tax trap most Americans never see coming: the foreign tax credit and how it interacts with a Roth IRA. Lucas and Luna walk through a specific scenario—a US-based investor holding a global equity ETF in a taxable account who realizes they're paying foreign taxes they can't fully credit. They explain why moving that ETF inside a Roth IRA eliminates the f...

Episode 76 of Roth IRA with Fexingo explores how a Roth IRA can be used to fund a sabbatical or career break. Lucas and Luna break down the contribution basis rule—how you can withdraw your original contributions tax-free and penalty-free at any time—and discuss strategies for planning a multi-year break using a combination of contributions and a Roth conversion ladder. They walk through a realist...

Episode 75 of Roth IRA with Fexingo explores how your Roth IRA can be a strategic tool for funding a gap year, career break, or sabbatical without triggering taxes or penalties. Lucas and Luna break down the five-year rule for contributions, the ordering rules for withdrawals, and a concrete example: a 35-year-old using $32,000 in non-qualified distributions to cover six months of living expenses...

Episode 74 explores a little-known Roth IRA strategy: using your contributions (not earnings) to pay for private K-12 school tuition without penalty or taxes. With rising tuition costs and limited 529 plan flexibility, many parents overlook this option. Lucas and Luna break down the rules, a real-world example, and the risks — including how to avoid triggering the excess contribution penalty. They...

In this episode of Roth IRA with Fexingo, Lucas and Luna discuss the most common Roth IRA coding errors that can trigger IRS audits. They focus on a real case study of a taxpayer who incorrectly coded a contribution as a conversion, leading to a multi-year audit. The episode explains the difference between contribution codes, conversion codes, and rollover codes on Form 5498, and how to ensure you...

Lucas and Luna examine a real IRS tax court case from early 2026 where a single Roth IRA coding mistake — a mislabeled form 5498 — cost a taxpayer $47,000 in penalties and lost tax-free status. They walk through how the IRS computer system flags Roth IRA contributions that exceed the Modified Adjusted Gross Income limit, the difference between excess contribution and ineligible contribution, and t...

Episode 71 of Roth IRA with Fexingo explores an often-overlooked benefit of the Roth IRA: protection against state income tax increases. Lucas and Luna discuss how taxpayers in high-tax states like California, New York, and New Jersey can use Roth conversions and contributions to lock in tax-free growth, avoiding future state tax hikes. They examine the case of a California couple converting $100,...

Episode 70 of Roth IRA with Fexingo explores the spousal Roth IRA—a powerful but overlooked strategy that lets a non-working spouse build tax-free retirement savings based on the working spouse's earned income. Lucas and Luna break down the eligibility rules, the 2026 contribution limits of $7,000 (plus $1,000 catch-up if over 50), and a real-world case: a stay-at-home parent contributing $6,000 a...

In this episode, Lucas and Luna explore how Roth IRAs can serve as a powerful hedge against inflation. They discuss the historical impact of inflation on purchasing power, using the example of a $50,000 lifestyle in 2026 versus 1996. The hosts explain how tax-free growth and withdrawals from a Roth IRA can shield retirees from rising tax brackets and cost-of-living increases. They also compare the...

Episode 68 of Roth IRA with Fexingo explores a little-known rule: the ability to withdraw up to $10,000 in Roth IRA earnings tax- and penalty-free for a first-time home purchase. Lucas breaks down the specific IRS criteria—who qualifies as a first-time homebuyer (including the five-year rule on first contributions), how to treat withdrawals for a spouse's purchase, and the potential trade-off of l...

In this episode, Lucas and Luna explore why the conventional wisdom of “tax-free is always better” misses the bigger picture for Roth IRA owners. They drill into a specific case: a listener named Jen, age 38, who has 15 years until retirement and is deciding between a traditional IRA deductible contribution and a Roth contribution. Lucas walks through the math comparing a 22 percent marginal rate...

Episode 66 of Roth IRA with Fexingo dives into asset location — the overlooked strategy of placing specific investments in a Roth IRA versus a traditional IRA or taxable account for maximum tax efficiency. Lucas and Luna break down why high-growth assets like small-cap value stocks and REITs belong in your Roth, while bonds and international stocks may be better elsewhere. They walk through a conc...

In this episode of Roth IRA with Fexingo, Lucas and Luna dive into the mechanics of dividend growth investing inside a Roth IRA. They use the example of a hypothetical investor who builds a portfolio of dividend-paying stocks like Coca-Cola and Procter & Gamble, showing how reinvested dividends can compound tax-free over decades. Lucas explains why a Roth IRA is the ideal vehicle for dividend grow...

Episode 64 of Roth IRA with Fexingo explores a powerful but under-discussed angle: using a Roth IRA as insurance against future tax rate increases. Lucas and Luna break down the math behind today's historically low tax brackets and why locking in tax-free growth now could save you six figures over a 30-year retirement. They walk through a concrete example comparing a $500,000 traditional IRA vs. R...

Episode 63 of Roth IRA with Fexingo shifts the lens from tax-free withdrawals to upfront tax savings. Lucas and Luna explore how Roth IRA contributions, though after-tax, can indirectly reduce your current taxable income through strategies like the Saver's Credit, state-level deductions, and proper tax bracket management. They use a concrete case: a single filer earning $36,000 in 2026 who contrib...

In this episode, Lucas and Luna break down why a Roth IRA's tax-free growth can backfire if you get the bond allocation wrong during a market downturn. They walk through the mechanics of sequence-of-returns risk — when a 20 percent drop in the first year of retirement cuts a portfolio's lifespan by years — and explain how holding bonds inside a Roth IRA can actually amplify the problem because bon...

Episode 61 of Roth IRA with Fexingo explores a little-known strategy: how a Roth IRA can actually improve your Expected Family Contribution (EFC) for FAFSA purposes. Lucas and Luna break down the key difference between retirement accounts and custodial accounts, explain why assets in a Roth IRA are treated more favorably than parent-owned taxable accounts, and walk through a concrete example showi...

Episode 60 of Roth IRA with Fexingo breaks down the mega backdoor Roth IRA strategy in the wake of the 2026 tax reform. Lucas and Luna explore how changes to after-tax 401(k) contributions and in-plan Roth rollovers have shifted the landscape for high earners. They walk through a concrete example: a senior engineer at a tech firm who maxes out her pre-tax 401(k), receives a 4% employer match, and...

Episode 59 of Roth IRA with Fexingo explores a controversial strategy: using your Roth IRA as an emergency fund. Lucas and Luna break down the mechanics — contributions can be withdrawn tax-free and penalty-free at any time, making a Roth a uniquely flexible vessel for both long-term growth and short-term safety. They cite the 2024 Vanguard study showing 38 percent of Americans have less than $1,0...

A detailed walkthrough of the Roth IRA Backdoor strategy following the Tax Reform of 2026. Lucas and Luna break down the mechanics of after-tax nondeductible IRA contributions and conversion, addressing the new pro-rata rule complexities and the elimination of recharacterizations. Using a specific example of a high-earner with a $500,000 traditional IRA balance, they illustrate how the tax bill wo...

Episode 57 of Roth IRA with Fexingo dives into a major advantage of Roth IRAs for retirees: no Required Minimum Distributions (RMDs). Lucas and Luna explain how the SECURE Act 2.0 raised the RMD age to 75, but Roth IRAs remain exempt from RMDs entirely. They walk through a concrete example: a retiree with $800,000 in a traditional IRA faces RMDs of roughly $30,000 at age 75, which could push them...

Episode 56 of Roth IRA with Fexingo explores the case for holding international equities in your Roth IRA. Lucas and Luna dive into the tax efficiency benefits, the impact of foreign tax credits, and why high-growth emerging markets may be better suited for tax-free accounts. They discuss the trade-offs of using a Roth vs. taxable account for global diversification, referencing the MSCI EAFE index...

Episode 55 of Roth IRA with Fexingo tackles the often-confusing rules for non-spouse beneficiaries inheriting a Roth IRA. Lucas and Luna walk through the key regulation: the 10-year distribution rule under the SECURE Act, which took full effect in 2025. They explain why leaving a Roth IRA to a child or sibling is not a simple tax-free handoff, and what happens if beneficiaries miss the annual RMDs...