Deadline Approaching: Create a Roth Account Worth One Million Dollars by April 18th

by | May 7, 2023 | Self Directed IRA | 26 comments

Deadline Approaching: Create a Roth Account Worth One Million Dollars by April 18th




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The deadline to contribute to a Roth IRA for the 2020 tax year is quickly approaching on April 18th. Investing in a Roth IRA can be a smart financial move for many individuals, as it offers tax-free withdrawals in retirement. But what about building a million dollar Roth IRA? Is it possible, and how can one achieve this lofty goal?

Firstly, it’s important to understand that building a million dollar Roth IRA takes time and consistent contributions. One cannot simply wait until their 50s or 60s and hope to max out their contributions to reach this milestone. It’s important to start early and contribute consistently throughout one’s working years.

Assuming a 7% annualized rate of return, investing the annual maximum of $6,000 in a Roth IRA starting at age 25 could potentially result in a balance of over $1 million by age 65. However, this assumes consistent contributions and significant market growth. It’s also important to note that the contribution limit increases to $7,000 for those aged 50 and up.

See also  Investing in Real Estate with a Self-Directed IRA

For those who may not have started contributing early on, there are other ways to potentially catch up. One can make catch-up contributions if they are age 50 or older, which increases their annual contribution limit by $1,000. Additionally, if eligible, one can make qualified charitable distributions from their traditional IRA or Roth IRA. This allows individuals to donate directly to a charity and count the distribution towards their required minimum distribution.

In addition to consistent contributions and potential catch-up efforts, it’s also important to invest wisely. Investing in a diversified portfolio, regularly rebalancing, and avoiding high fees can all contribute to stronger long-term growth.

Ultimately, building a million dollar Roth IRA requires commitment, consistency, and a long-term view. It may not be achievable for everyone, but by starting early, maximizing contributions, and investing wisely, individuals can work towards achieving this milestone and securing their retirement future. With the deadline for 2020 contributions approaching, now is the time to take action and start building towards a better financial future.

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26 Comments

  1. On and Off the trail

    Could I run my "single truck" over the road truck company, through an llc owned by an ira to put more money into an ira, in addition to my solo 401k, through profits.

  2. ChrisKillFacts

    10 percent rate of return from what? The stock market and banks are a joke. So is fidelity and all the others. Make money passively and create cash flow. Buy physical assets. When the next crash comes people will be cashing out their 401ks and IRAs when it’s at the bottom. Everyone else will be buying everything.

  3. Selvin Ajuchan

    How much is the minimum we need open to the account and how we can open

  4. Kristie McDonald

    I have to use the back door Roth method. I’m 55 and I have an old IRA that has about 150 in it. Can I start the process by putting 7k into IRA now before 4/18 and figure out the rollover of new 7k IRA into a back door Roth after 4/18? I have to understand how the old IRA affects this move.

  5. BFS Mom

    Is it correct that if you are in a health share plan for your health coverage, you are not eligible to contribute to an H.S.A?

  6. RichK

    Hello Mark.I'm retired on disability,58 years old..Can I start a roth ira,or are there better options?Thanks.

  7. silverjava1 one

    Thank you forever to who helped me out to make tens of dollars. It has paid for many pizza rolls and sprite. I am now debt free (bankruptcy)and living in a cardboard box. My life is great.

  8. David Hudson

    Hay Mark I was thinking, is there anyway I could right off a healthier diet? If I can get it approved by my doctor would I use a HSA, HRA, or some other account? Would love to hear your thoughts on this.

  9. Coleman T

    Can I convert $100K from my Traditional IRA to my current ROTH IRA now… even though I have Filed and received my $2200 2022 Refund? If so.. How/When do I pay the taxes due on the conversion?

  10. Brett Law

    Can the Roth IRA be structured in a way where the greatest returns from your portfolio go first to your Roth IRA? So, rather than $6k making 10%, you have a scenario where that contributed pool always gets the highest rate of returns out of all of your asset classes and thus your Roth IRA grows tax free from the highest rates of return?

  11. G VS

    My daughter has a 10M ROTH IRA and it was the worst choice of her life.

  12. Joy L

    2 questions: I have metals in my self directed Roth. How do I add cash to my Roth or do I open another Roth? Just learned WA state starting requiring tax payment on our Capital gains from our stocks by 4/18. Is this legitimate? How do I calculate how much I owe?

  13. gamingbtc

    How do you create a roth with a high income? say household > 400k? Everywhere I look online it is not possible to do…

  14. STELLASCUTENESS

    Love the content usually, but clearly, it hasn’t been YOUR social security number that some illegal was using and not paying taxes on.

    Stop validating illegal immigration. Support a path to citizenship or close the borders. You can’t logically have it both ways.

  15. HighCountryRambler

    I'm retired, all my income is passive and SS, can I still fund my Roth IRA (with no W2 income)? Tks

  16. Goofball

    Hi, huge fan of your channel. The one thing concerning me lately is the roll out of the CBDC, how can we protect ourselves? Please advise.

  17. Brent Swenson

    Is this you or are you affiliated with

  18. Brent Swenson

    KOHLER & EYRE, CPA’s, LLP

  19. Mark

    What if the MAGI is over (much over) the 2022 limit of $214k for married filing jointly?

  20. CQuintana

    It sounds like someone on Medicare can't open/use an HSA. Is this correct?

  21. Jeremy

    Lol inflation is crazy, world is dumping us dollar and your talking about retirement plans instead of gold/crypto?
    Get with the times mark

  22. Woody Dunlop

    Can I open a Self Directed IRA immediately and move it under RLTrust later

  23. daytonpyro

    where do i open a roth ira? places like etrade? fidelity?

  24. daytonpyro

    so when i go to HR Block and i am done in 2 hours, does that mean she rushed it and missed things for me?

  25. lamar osborne

    I’m a disabled veteran can I contribute to a Roth

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