The Power Of The ROTH IRA (Tax-Free Investment Account)
Download a Free Flow Chart on Tax and Penalty considerations when withdrawing money from a Roth IRA HERE
In this video, you learn the basics of the Roth IRA and why the Roth IRA can be a compelling account to take advantage of to avoid paying taxes on your investments.
00:55 What is a Roth IRA
2:10 An example as to what is a Roth IRA
• Retirement Account that you can open at breakage firm such as Fidelity, TD Ameritrade, etc.
• Contribute $6,000 a year if you are under 50 years old and $7,000 if you are 50 and older
• No tax deduction on contribution • Withdraw the money tax-free when 59.5 years old
2:55 What are the limitations of the Roth ira
• You can only withdraw the earnings when you are 59.5 years old (There are exceptions)
• The five-year rule.
• Earning a high income
4:40 How to get around the limitations of the Roth IRA
• You reach 59.5 years old (the account must have been open for five years)
• You become disabled • 10,000 dollars for your first home
5:50 Why is the Roth IRA so powerful
• No tax bill when you withdraw the money at the appropriate time.
• The amount you contribute can always be taken out tax-free and penalty-free.