The Roth IRA is one of the most powerful wealth building tools you have at your disposal
Anyone with income can utilize a Roth IRA
Let me explain 👇👇
Anyone with income can utilize a Roth IRA
Let me explain 👇👇
1/
The Roth IRA utilizes AFTER tax dollars
You pay your taxes today and NEVER worry about taxes ever again
Gains are all tax-free
The Roth IRA utilizes AFTER tax dollars
You pay your taxes today and NEVER worry about taxes ever again
Gains are all tax-free
2/
You also have the ability to withdraw money in the case of an emergency
You can withdraw your contributions, not any gains, unless you want to pay a 10% Fee
However, once you withdraw there is no catch up
You also have the ability to withdraw money in the case of an emergency
You can withdraw your contributions, not any gains, unless you want to pay a 10% Fee
However, once you withdraw there is no catch up
3/
If you contribute the $6,000 max in January 2022, and subsequently withdraw half of that in the middle of the year, you are not able to re-contribute those dollars in that tax year
Once the $6K has been contributed, you are maxed out
If you contribute the $6,000 max in January 2022, and subsequently withdraw half of that in the middle of the year, you are not able to re-contribute those dollars in that tax year
Once the $6K has been contributed, you are maxed out
4/
In 2023, the contribution limit is set to rise from $6,000 max annual contribution to $6,500
In order to contribute to a Roth IRA one must have 'Earned Income"
In 2023, the contribution limit is set to rise from $6,000 max annual contribution to $6,500
In order to contribute to a Roth IRA one must have 'Earned Income"
5/
There are income limits with a Roth IRA
Single '22: $144K or less
Single '23: $153K or less
Married '22: $214K or less
Married '23: $228K or less
What if you are OVER these you might ask
Enter the Backdoor Roth IRA
There are income limits with a Roth IRA
Single '22: $144K or less
Single '23: $153K or less
Married '22: $214K or less
Married '23: $228K or less
What if you are OVER these you might ask
Enter the Backdoor Roth IRA
6/
The income limits above are for contributing DIRECTLY into your Roth IRA
If you are over those income limits you have an extra step
If you are over, you will need to contribute to a TRADITIONAL IRA first
From there, you can Rollover your Traditional into a ROTH IRA
The income limits above are for contributing DIRECTLY into your Roth IRA
If you are over those income limits you have an extra step
If you are over, you will need to contribute to a TRADITIONAL IRA first
From there, you can Rollover your Traditional into a ROTH IRA
7/
So the contribution is not directly into the Roth
These Rollovers can happen once per year
There are tax consequences for any gains that may have been made in the traditional so seek guidance before doing anything
So the contribution is not directly into the Roth
These Rollovers can happen once per year
There are tax consequences for any gains that may have been made in the traditional so seek guidance before doing anything
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