Rich Habits Podcast

Q&A: Paying Off $300K in Student Loans, Roth IRA vs. Roth 401(k), & Kiddie Taxes

Mar 5, 2026
Listeners ask about paying off massive student debt versus investing, and whether market returns can beat a 6% loan. They debate buying a rental property for a child and how to structure ownership and taxes. Retirement strategy questions cover Roth IRA versus Roth 401(k), employer match priorities, and backdoor Roths. There is a plain breakdown of kiddie tax thresholds and advice for kids’ savings choices.
Ask episode
AI Snips
Chapters
Transcript
Episode notes
ADVICE

Use An LLC And Trust When Buying A Home For A Child

  • If buying a home for a child, use an LLC and a revocable living trust and create an operating agreement that spells out rent, upkeep, and responsibilities.
  • Robert warns to decide mortgage vs cash, consider other children, and formalize upkeep and rent terms to avoid IRS and family issues.
ADVICE

Charge Market Rent Or Lose Rental Tax Benefits

  • Charge fair market rent or face limited deductible expenses and potential IRS scrutiny; discounted rent can convert property to personal use.
  • Austin explains renting below market blocks rental deductions like depreciation and limits expense offsets.
INSIGHT

Most Estates Under $14M Avoid Federal Estate Tax Today

  • With current estate exemptions (~$14M in 2025), estates under that threshold typically avoid federal estate tax.
  • Robert highlights Brent’s ~$2.5M in assets is well below the exemption, so federal estate tax isn’t an immediate concern.
Get the Snipd Podcast app to discover more snips from this episode
Get the app