The biggest benefit of a Roth IRA is that you get to take tax-free withdrawals in retirement. You contribute with after-tax income, that money gets invested in your account, and your entire balance (including earnings) can be withdrawn without owing any taxes in retirement. And because there are no capital gains taxes in a Roth […]
A Roth IRA is completely funded with after-tax dollars you’ve already paid incomes taxes on. The money in your account compounds tax-free, and withdrawals in retirement also never get taxed. While the contribution limits of a Roth IRA are fairly low compared to other retirement accounts (like the solo 401k), the withdrawal rules are more lenient. Every retirement […]
A question we get often is: When can I withdraw from my IRA or 401k without penalties? Retirement accounts like a traditional and Roth IRA, and a 401k, generally have an early distribution penalty tax of 10% when you take a withdrawal before the eligible withdrawal age of 59½. Roth IRAs have an additional 5-year […]
A Roth IRA is one of the most tax-advantaged retirement plans available to individual income earners. Its biggest benefits are that you can withdraw your contributions at any age without taxes or penalties, and all withdrawals in retirement (both contributions and earnings) are also completely tax-free. What this means: Let’s say you contributed $10,000 into […]
A Roth IRA is an individual retirement account that could be a powerful vehicle to save for your retirement. Contributions are made with post-tax income (money you’ve already paid income taxes on), but your withdrawals in retirement are completely tax-free, no matter how large the gains. A Roth IRA is also one of the most […]
For the past several years, investing in NFTs through a retirement plan has been somewhat of a gray area. The reason is that the IRS has never officially clarified whether they were considered an asset or a collectible, which would not be allowed as an investable asset class in a retirement plan. Still, because the […]
A Roth IRA three different growth components: Let’s go through each one below. Growth component #1: Your contributions The first way your Roth IRA grows is when you make annual contributions to your account. With a Roth IRA, you’re allowed to contribute up to $6,500 for 2023, or up to $7,500 if you’re at least […]
Investing in crypto through a Roth IRA is possible, but usually not through a regular Roth IRA that you find at major banks and institutions. You’ll have to find a special type of Roth IRA known as a self-directed Roth IRA. Why use a Roth IRA to invest in crypto? A Roth IRA gives you […]
OVERVIEW Roth retirement accounts like a Roth IRA and Roth 401k are extremely tax-advantaged. You get tax-free compounding and you don’t have to pay any taxes when you withdraw from your nest egg in retirement (no matter how large your gains). There are people who’ve turned a few thousand dollars into millions inside Roth accounts. […]
