And if you have hundreds of thousands or millions in the traditional. The pro rata rule would make your backdoor contribution 90+% taxed so it would be pointless
If you roll a 401k into an IRA, those will be pretax dollars in the IRA. It doesn't take a very big rollover to completely swamp the tax benefits of a 7k annual Roth contribution limit.
No. Pro rata is Latin for “in proportion.” It’s one dollar for one dollar. If you add $7k to your tIRA to do the backdoor Roth, you also must convert $7k of existing funds which becomes taxable income. So you pay your marginal tax rate, on half the amount.
IMO not that big of a deal to contribute $7k, convert $7k, and pay $2-3k in taxes to get $14k in the Roth space that will grow tax free forever. Most people are too pre-tax heavy in their retirement strategies anyway.
I'm not familiar with the strategy you're describing, but this is not how it works for the majority of backdoor Roth contributors.
If you have $100k pre-tax in a trad IRA, contribute 7k after tax for the purpose of rolling into a Roth, then you will owe income tax on the proportion of 100/107*7k, or $6,542.
You're still limited to 7k annual (for 2025) so the 14k you describe must be something else.
The open internet is done. Monopolies control everything.
We have an iOS app in the store for 3 years and out of the blue apple is demanding we provide new licenses that don’t exist and threaten to kick our app out. Nothing changed in 3 years.
Getting sick of these companies able to have this level of control over everything, you can’t even self host anymore apparently.
> We have an iOS app in the store for 3 years and out of the blue apple is demanding we provide new licenses that don’t exist and threaten to kick our app out.
> What stops someone at circle deciding to issue more usdc without real dollar backing
Well, the law now. The recent stablecoin legislation has a lot of new regulations.
If you mean what technically stops them, then nothing. But that's true of all the crimes I can think of, the law can only be enforced after the crime takes place.
This has nothing to do with "everyone thinking they can code now", come on! People aren't asking cc to setup their cloud instances of ollama, they're likely getting a c/p line from a tutorial, just like they've always done.
What's likely happening here is that people are renting VMs and one-line some docker-compose up thing from a tutorial. And because it's a tutorial and people can't be bothered to tunnel their own traffic, most likely those tutorials are binding on 0.0.0.0.
Plenty of ways to footgun yourself with c/p something from a tutorial, even if you somewhat know what you're doing. No need to bring "everyone thinking they can code" into this. This is a tale as old as the Internet.
Another thing is that docker, being the helpful little thing that it is, in its default config will alter your firewall and open up ports even if you have a rule to drop everything you're not specifically using. So, yeah. That's probably what's happening.
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