/////////////////////////////////////////////////
Get answers FASTER…
Join this channel to get access to perks:
Chat on discord:
Join Link
Support on Patreon:
—————————————————–
Are you ready for professional investment advice? We can help you with financial planning and asset management. Let us guide your investments to your financial freedom. START HERE
Our financial planning process is an ongoing relationship because as you grow, your financial plan grows with you. At Sickle Hunter Financial Advisors, we believe that saving and making sound financial decisions will help improve your life’s changing needs and objectives. Retirement, college planning, wealth building, social security, and career benefit packets are only a few of the financial decisions that you may face in your lifetime and we’re here to help guide you.
TRAVIS T SICKLE, CFP®, EA®, AAMS®, CRPC®, RICP®
CERTIFIED FINANCIAL PLANNER™
Company Website:
twitter: @travissickle
Instagram:
facebook:
LinkedIn:
Sickle Hunter Financial Advisors
1646 W Snow Ave.
Suite 144
Tampa, FL 33606
——————————————————-
Gear Used in Videos
Income Protection: You have a 1 in 4 chance of becoming unable to work due to disability. Your Breeze Disability Insurance policy will replace part of your lost income if and when you need it. Apply here
Partnership referral links
Aura Identity Theft Protection *Up to 50% off* HTTPS://www.aura.com/travis
Seeking Alpha 50% Discount
All Amazon links are affiliate links
____________________________________________________________________________
Information in this video is for educational and entertainment purposes only.
sicklehunter.com/disclosures
____________________________________________________________________________
#travissickle…(read more)
LEARN MORE ABOUT: IRA Accounts
CONVERT IRA TO GOLD: Gold IRA Account
CONVERT IRA TO SILVER: Silver IRA Account
REVEALED: Best Gold Backed IRA
A Roth IRA is an individual retirement account that allows you to save for retirement on a tax-advantaged basis. It can be a great way to save for your future, but it’s important to understand the rules and regulations associated with it. One of these rules is that you’re limited to a certain amount of contributions each year. If you exceed this limit, you’ll be subject to a 6% excise tax on the excess contribution.
But what happens if you leave the excess contribution in the account? The good news is that the IRS won’t immediately take the excess contributions from you. Instead, you’ll have the opportunity to withdraw the excess contribution and any associated earnings without any penalty. The bad news is that if you don’t withdraw the excess contribution within the required time frame, you’ll be subject to the 6% excise tax on the amount.
In addition to the 6% excise tax, you may also be subject to other penalties. For example, if the excess contribution is not withdrawn by the due date of your tax return (including extensions), the IRS may impose a late contribution penalty. This penalty is equal to 6% of the excess contribution, plus interest, and is calculated from the due date of your tax return.
Finally, it’s important to note that if you leave the excess contribution in the Roth IRA, you won’t be able to deduct it from your taxes. This means that you’ll have to pay taxes on the amount, even if you don’t withdraw it.
It’s important to be aware of the rules and regulations associated with a Roth IRA. If you exceed the contribution limit, it’s best to withdraw the excess contribution as soon as possible to avoid any penalties. However, if you leave the excess contribution in the account, you may be subject to the 6% excise tax, as well as other penalties.
Schwab doesn't let you add in more than the limit into roth account
Thanks for the video! Question:
If someone contributed to a Roth in 2022 but was ineligible due to MAGI limits, and they pulled the 22' contribution and earnings in January 2023, are the earnings included in income in 2022 or 2023?
I ask because per pub. 590, "the earnings are considered earned and received in the year the excess contribution was made".
That makes me think it should be in 2022, but, a 1099-R wouldn't be issued for this removal until 2024, for 2023, since this occurred in January 2023.
Any insight is really appreciated. Thank you! 🙂
Question: My Traditional IRA is new. I contributed 6000 for 2022. I passed the income limit so now have to re-characterize to my traditional. Then do a backdoor back roth. If my 6000 became 7000 back door only 6 and take out 1000 pay penalty and tax on the 1000. And i should be good. Also if fidelity does stocks would it be better to re-characterize the stocks? Thank you