WCI #451: Roth IRAs and 529s

21 snips

Dec 25, 2025

In this discussion, the Student Loan Expert shares insights on recent changes to federal student loan programs, including updates on repayment plans and Public Service Loan Forgiveness. Laura Clifford, a CPA and president of Fox & Company, dives into tailored tax planning strategies for high-income professionals. There’s also a thorough exploration of Roth IRA conversions, and the intricacies of managing 529 plans, including what happens when they are overfunded and effective usage strategies.

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INSIGHT

Behavioral Barriers To Spending Retirement Savings

People struggle to spend accumulated retirement money even when they can afford it.
Using behavioral anchors like taking Social Security early can help force spending.

ANECDOTE

Using 529 Withdrawals As A Spending Trial

James Dahle describes actively pulling funds from many 529 accounts for nieces, nephews, and kids.
He uses this as a behavioral trial run for spending saved money in retirement.

INSIGHT

Career Longevity Is Uncertain For Physicians

Many physicians won't work full-time for 30 years due to burnout, disability, or career changes.
Plan to reach financial independence earlier by saving aggressively in the early career years.

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In this episode we tackle more of your questions, starting with a look into Roth strategy, including how TSP Roth in-plan conversions work and what to consider when converting a traditional IRA to a Roth IRA and paying the resulting tax bill. We then briefly hear from our friends at Fox CPAs. From there we shift to 529 plans and explore how to use them effectively, what to do if they become overfunded, and whether having too much in a 529 is really a problem at all.

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The White Coat Investor has been helping doctors, dentists, and other high-income professionals with their money since 2011. Our free personal finance resource covers an array of topics including how to use your retirement accounts, getting a doctor mortgage loan, how to manage your student loans, buying physician disability and malpractice insurance, asset allocation & asset location, how to invest in real estate, and so much more. We will help you learn how to manage your finances like a pro so you can stop worrying about money and start living your best life. If you're a high-income professional and ready to get a "fair shake" on Wall Street, The White Coat Investor is for you!

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00:00 WCI Podcast #451 01:34 When to Take Your Social Security 09:55 Student Loan Update 22:43 TSP Roth Conversions 27:22 Large Roth Conversions 31:00 Fox & Company CPAs Interview 42:51 Overfunded 529 Accounts 53:45 529 & HSA Reimbursement Timing