Why Should I Invest in a Traditional IRA? IRAs Explained
If you’ve been wondering “why should I invest in a Traditional IRA (Individual retirement account)?” you’re in the right place. In today’s video, Tony from Wealthfront is giving us all the details you need to know about a Traditional IRA and how to think about this tax-advantaged account as part of your broader financial strategy.
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✦Investing 101👉
✦What else should young investors know? 👉
✦IRAs 101 👉
✍️ HELPFUL LINKS ✍️
✦Learn more about Wealthfront:
✦Learn more about Traditional IRAs 👉
✦Having trouble deciding which IRA is right for you? 👉
🕒 TIMESTAMPS 🕒
00:00 — Intro
00:17 — What is a Traditional IRA?
01:10 — Contribution Limits
01:33 — Income Limits for Tax Deduction
02:29 — Withdrawing from a Traditional IRA
02:56 — Qualified vs Non-Qualified Distributions
03:20 — Penalty-Free Early Withdrawals
04:08 — Final Thoughts
The information contained in this communication is provided for general informational purposes only, and should not be construed as investment or tax advice. All investing involves risk, including the possible loss of money you invest, and past performance does not guarantee future performance. Wealthfront Advisers and its affiliates do not provide tax advice and investors are encouraged to consult with their personal tax advisors to discuss tax-related matters specific to their situation. Investment advisory services are provided by Wealthfront Advisers LLC, an SEC-registered investment adviser, and brokerage products and services are provided by Wealthfront Brokerage LLC, Member FINRA/SIPC….(read more)
LEARN MORE ABOUT: IRA Accounts
INVESTING IN A GOLD IRA: Gold IRA Account
INVESTING IN A SILVER IRA: Silver IRA Account
REVEALED: Best Gold Backed IRA
Is a 401k the same as a state pension plan? Pension contributions are tax deductible. If so, it means I can’t take a traditional Ira tax deduction… thanks.
Hi Tony, maybe you have the time to help me understand something that I hear a lot when the topic of retirement saving tools like the 401k or IRA get brought up. I understand that you pay higher taxes at higher income brackets, but what I don't understand is why that would affect you when you retire and try to pull money out of your traditional IRA for example. Wouldn't your income at retirement only be from your investments/savings, and so wouldn't that mean that you'd be in a low tax bracket? Or are people working into retirement, earning a high income, and then also taking distributions from their savings, and so paying lots of taxes?
Tony, you do a great job explaining these complex topics very simply. Refreshing! Keep up the videos.
The best!