In today’s video we’re discussing the benefits of a ROTH IRA vs another type of IRA, or individual retirement account.

Roth IRA Videos:
🔴 – :
🔴Types of Roth IRA’s:
🔴Spousal Roth IRA:
🔴 [ ]:

🔴 “ ” ? [ ]:

🔴 [ ?]:

✅ SUBSCRIBE to NOT being a transaction ever again…
✅ Like us on Facebook!
✅ Follow us on Twitter!
✅ Check out our site for more tips

Roth IRA Phase Out Formula: If the amount you can contribute must be reduced, figure your reduced contribution limit as follows.
Start with your modified AGI.
Subtract from the amount in (1):
$204,000 if filing a joint return or qualifying widow(er),
$-0- if married filing a separate return, and you lived with your spouse at any time during the year, or
$129,000 for all other individuals.
Divide the result in (2) by $15,000 ($10,000 if filing a joint return, qualifying widow(er), or married filing a separate return and you lived with your spouse at any time during the year).
Multiply the maximum contribution limit (before reduction by this adjustment and before reduction for any contributions to traditional IRAs) by the result in (3).
Subtract the result in (4) from the maximum contribution limit before this reduction. The result is your reduced contribution limit.

A Roth IRA is an individual retirement account in which money grows tax-free. A Roth IRA is funded with after-tax money.

Some of the Advantages of a Roth IRA:
Tax-free distributions – This is the #1 benefit of a Roth IRA. You funded this account with after-tax money, and in retirement your proceeds will be yours, free and clear of taxes.

No Required Minimum Distributions – Unlike the Traditional IRA, there are no required minimum distributions (RMDs) required at any age.

Better terms for early withdrawals than an IRA – If you need funds from this (emergency), you will not be penalized for early withdrawals of your contributions. The 10% penalty will only be on the earnings if they are withdrawn prior to age 59 ½.

Tax-free withdrawals for heirs – Unlike Traditional IRAs, your heirs will pay no taxes on the proceeds from an Inherited Roth IRA.

Easy to open – Almost anyone can open one if you have earned income.
The contribution limits for 2021 are $6000, and $7000 if you are 50 and older.

Phaseout for contributing to a Roth IRA
The phaseout range for married couples filing jointly who are covered by a workplace retirement plan and contribute to a Roth IRA in 2022 will increase. For 2022, it will be between $204,000 and $214,000.
For heads of household or those filing as single, the phaseout range is between $129,000 and $144,000 in 2022.

What are the Withdrawal Rules for a Roth IRA?
Roth IRA tax-free withdrawal and IRS penalty rules vary depending on your age, how long you’ve had the account and other factors.
Withdrawals must be taken after age 59½.
Withdrawals must be taken after a five-year holding period.
There are exceptions to the early withdrawal penalty, such as a first-time home purchase, college expenses, and birth or adoption expenses.

Roth IRA withdrawal rules if you are age 59 and under
You can withdraw contributions you made to your Roth IRA anytime, tax- and penalty-free.

If you take withdrawals from a Roth IRA, you’ve had less than five years.

If you take a distribution of Roth IRA earnings before you reach age 59½ and before the account is five years old, the earnings may be subject to taxes and penalties. You may be able to avoid penalties (but not taxes) in the following situations:
You use the withdrawal (up to a $10,000 lifetime maximum) to pay for a first-time home purchase.
You use the withdrawal to pay for qualified education expenses.
You use the withdrawal for qualified expenses related to a birth or adoption.
You use the withdrawal to pay for unreimbursed medical expenses or health insurance if you’re unemployed.

If you take withdrawals from a Roth IRA, you’ve had more than five years.

Roth IRA withdrawal rules if you are over 59 ½:
And you take withdrawals from a Roth IRA you’ve had less than five years:
Your earnings will be subject to taxes but not penalties if you haven’t met the five-year holding requirement.
And you take withdrawals from a Roth IRA you’ve had more than five years:
You can withdraw money from a Roth IRA with no taxes or penalties if you’ve met the five-year holding requirement.

roth ira explained roth ira investing why should i invest in a roth ira…(read more)

LEARN MORE ABOUT: IRA Accounts

TRANSFER IRA TO GOLD: Gold IRA Account

TRANSFER IRA TO SILVER: Silver IRA Account

REVEALED: Best Gold Backed IRA