What The Heck Is an IRA?

by | Sep 7, 2022 | Simple IRA | 33 comments

What The Heck Is an IRA?




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What if there were a way to dodge taxes on a chunk of your paycheck? Or how about an investment opportunity that will never pay a penny of taxes on the growth no matter how big it gets? Sound too good to be true? This is the amazing tax shelter of the IRA.

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33 Comments

  1. Two Cents

    Lots of you have asked "Can I fund a 401k AND an IRA?"

    Yes, you certainly can, and many people do. By potentially maxing out an IRA and/or a 401(k) (or any other work-sponsored retirement plan) you can sock even more money away for retirement. Roth IRA's are subject to an income-limit phase out and Traditional IRA's can lose their deduction if you have a 401(k) and earn over a certain amount. But the short answer is — if you CAN fund a Roth IRA and a 401k, go for it, you awesome save, you!

    Want to check out your status and see if you can fund an IRA, 401k, or both? Here's a great resource from the IRS: https://www.irs.gov/retirement-plans/plan-participant-employee/retirement-topics-ira-contribution-limits

  2. Eric T

    I am trying my best to understand all of this IRA mess but it is confusing. The government created an IRA to help people save but the moment they take it out they tax them heavily so they didn't really say too much.

  3. Rey More

    In other words you can invest yourself In index fund in your brokerage account and no worry about early or late tax penalties

  4. Dazdrasen Konstantin

    Does this cover car insurance? Asking from Northern Ireland.

  5. theguapo1975channel

    Im 46 is is tarted t contribe in Fidelity, Is still worth it. thanks.

  6. LacieWhy

    I chose to do a Roth just because I assumed I wasn’t going to be able to pay the taxes on it in the future.

  7. Gabriella fullen

    When it comes to investing, diversification is key, that’s why I engage in sectors based on projected growth. There’s no shortcut to getting rich, but there are smart ways to go about it

  8. Steven maloney

    Being Irish this hits different

  9. Monica Vega

    I have a 457 with my employer. Is this a better option than an IRA? possible video idea

  10. David E Guerra

    You've done an absolute top notch job on this. Very informative! I’m a dividend investor, my wife and I have invested in the s&p500, both through my TSP with the government and through fidelity in her 401-k. Cashed out 370k from the S&P and invested with a full service broker.. Until about 3years ago we were 100% in the s&p after over 30 years. I’m retiring at the end of the month at 59, while my wife will retire next year at 54. We currently have 5.7 million in out tex deferred savings.

  11. Joseph

    Oh so there's a different IRA, less irish

  12. Florida Man 4106

    Man, I would definitely sign up for Roth IRA after watching this video, right after I figure out what is making those strange beeping noises in my car. I hope it's nothing bad

  13. Fabiano Pina

    Love your videos, i actually understand it now except the max contribution. Is sep ira (because im self employed) my max? If so, what precents me from adding more than 6k to a roth?

  14. Gustavo Mendoza

    I have a question, right now I have 10,000 saved in my saving. I am 20 years old and I wanna start one, am I able to put my 6,000 right away and then wait for the next year and put another 6,000 and keep going till I’m 59 ?????

  15. Mardick Davila

    Very nice work my fellows

  16. Stella Rivera

    Being comfortable can be your worst enemy, you think you have enough until you find yourself in a situation where you do make money any more and then you realize it was never enough, so you must do your best to invest as much as you can. Most of us don't even realize how inflation reduces the value of what ever we have in our savings but the banks on the other hand, invest the money and still charge you for keeping it, that's why I invest with Suzanne Stephens Ellis. Just look her up online.

  17. kamila Hudson

    I’m 50 and my husband 54 we are both retired with over $3 million in net worth and no debts. Currently living smart and frugal with our money. Saving and investing lifestyle in the stock market made it possible for us this early even till now we earn weekly. Thanks to FIRE movement.

  18. Lilseansolo

    This doesn’t sound related to the car bombs i know related to the IRA that I’m thinking about

  19. Roger Sepeda

    So my wife was told to put 15% of her income but she would exceed the 6k she can put in her ira, what do we do ?

  20. Angelina Gonzalez

    can my husband and I have separate IRA

  21. Freedom77

    Why only 6000 per year?

  22. Mr Truth

    Unfortunately , when I was 25 , I thought I would never become old. Thats advice to you young ins , whether you want it or not.

  23. kamila Hudson

    THINKING OF LIFE AFTER RETIREMENT is really a pain in the ass…. What’s the best advice for someone worried over Retirement.

  24. Geminithugbaby

    My spouse is not getting away with not working and thinking we ll be signing up for for an IRA.. we’ll both be contributing.. An investment on an iPad and YouTube acct can raise the kids no excuses to stay home not even the our kids I may be the bread maker, the cash cow etc.. but I cant support a family on my own especially just selling woman’s shoes at the mall

  25. Geminithugbaby

    I wish they replaced school with YouTube growing up

  26. Super duper372

    Well an IRA is a paramilitary formed in Ir-

  27. English with Altini

    Super helpful! Thank you. Now I need to learn about 401K. Is that was TRS is?

  28. E Jeter

    I'm just about to start an Ira account I need more information

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