IRA, Roth IRA, Backdoor Roth in தமிழ் (US Retirement Series - 4)
Рет қаралды 17,114
Күн бұрынWhat is IRA? Roth IRA? Backdoor Roth IRA? What should we do with our 401K when we change jobs? Explained in Tamil with english subtitles.
00:00 Intro
00:22 What is IRA?
00:54 Restrictions on IRA contribution
01:39 IRA Tax deduction eligibility
03:20 Roth IRA
03:55 Who can contribute to Roth IRA?
04:25 Roth IRA advantages
05:57 Backdoor Roth
06:25 Backdoor Roth Steps
07:27 401K rollover to IRA
08:23 Rollover IRA advantages
References:
www.investopedia.com/retireme...
www.investopedia.com/terms/r/...
www.nerdwallet.com/article/in...
www.nerdwallet.com/article/in...
www.physicianonfire.com/backd...
Related Episodes:
401K Explained: • 401K Explained in தமிழ...
Roth 401K Vs Pretax 401K: • Roth 401K Vs Pretax 40...
After Tax 401K: • After Tax 401K, Mega b...
Tax Saving Priorities in USA: • Investment Priorities ...
USA College Savings plan - 529: • USA College Savings - ...
USA College expenses: • College Expenses in US...
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Web: vijaymohans.com/
#VijayMohan #InvestmentInsights #IRA #RothIRA #BackdoorRoth
DISCLAIMER:
The content of this video is my own opinions and is for information purposes only. It is not intended as a substitute for professional financial advice. It is only intended to provide education about investments.
@sthariq Жыл бұрын
Yey! New video released and much awaited
@rajukamal Жыл бұрын
Great series Vijay guru. As usual, you simplified a complex topic. Thank you!
@AhamedMansoor1981 Жыл бұрын
Fantastic Vijay.. this is one of that topic that I was researching in recent time.. thank you for clearly explaining!
@jcnarasimhan4218 2 ай бұрын
Coming here after your seminar in CA yesterday, thank you for the wonderful session ! One quick suggestion: if you can link the playlist in the description, it will be easy to navigate to different related episodes in order. (and also possibly a slide that has side-by-side comparison of 410k | Roth 401k | Traditional IRA | Roth IRA | Roth Backdoor). Thanks for your service
@janavarthanamuthukonda387 Жыл бұрын
Thanks a lot Vijay for this clear explanation in Tamil
@BG_23281 Жыл бұрын
Thank you so much for educating us!!
@SureshKumar-eq2if Жыл бұрын
Very nicely explained. Can you create a video on this topic please? What anyone should do with 401k account when they repatriate back to India? I feel this is useful for many folks.
@vtkannan Жыл бұрын
thank you Vijay
@ravindranra 10 ай бұрын
Hello Vijay Mohan, Please explain about self directed IRA details too
@prabagaran.s1285 Жыл бұрын
Very good vidoe, if know about nri investment options , add one vidoe on that
@sancherry5960 Жыл бұрын
Good to see your video after sometime sir 😀 As usual simple and clear explanation. Personally though I was looking forward to your take on MEGA Backdoor ROTH as most of our Indians are high earners and this is a gold pot. - your fan currently in accumulation phase 😁
@InvestmentInsightsTamil Жыл бұрын
Mega backdoor Roth was covered as part of last episode - after tax 401K.
@sancherry5960 Жыл бұрын
@@InvestmentInsightsTamil My bad. Missed it. Thanks sir.
@selvael4 Жыл бұрын
Hello Sir, pls explain about Gold ira ?
@lajamur1 Жыл бұрын
Backdoor Roth would not make sense if you have a significant rollover IRA. Is it possible to roll-in an already rolled over IRA to current 401k ? So that there is no IRA balance
@07aakash Жыл бұрын
Thanks for educating and guiding us with your financial knowledge. How should one go about when contributing to Roth and later realizing they exceeded the income limit especially with losses in case of withdrawal to avoid penalty.
@InvestmentInsightsTamil Жыл бұрын
You should be able to withdraw before filing the tax return: investor.vanguard.com/investor-resources-education/iras/excess-contribution
@07aakash Жыл бұрын
@@InvestmentInsightsTamil Thanks for sharing, I was hoping for information on the calculation of withdrawal amount involving earnings or losses.
@arunrajendran529 Жыл бұрын
Vijay sir.. suppose I have 30k in my 401k and I left for India for good. Can I withdraw 10k every year by paying a 10% penalty and the fed and state tax deducted can be claimed back while filling returns. As we will not have another income in the US and have the first 12500 is non taxable. Also assuming we keep our bank accounts active here. as H1B is only valid for 6 years Will the visa status affect the money transfer from the US to India after the 6 six years
@santhoshkumarharhinthiran2037 Жыл бұрын
Hi Vijay, Nice simplified explanation video can we do backdoor roth conversion ever year or its just one time
@InvestmentInsightsTamil Жыл бұрын
As long as you do not have running balance in any form of pretax IRA's, you can do Backdoor Roth every year.
@karthikeyan-bd2tk Жыл бұрын
Hi Vijay Sir, I am waiting vedios for India... And how can we invest in foreign funds like s&p 500, Nasdaq 100 ?!! Currently i m investing through only in SBI mutual funds , because I am a SBI employee...
@selvaraniganesan6417 Жыл бұрын
Vijay, it is a clear vedio as usual. If possible, would you share with us the good finance/ investment related books that you read.
@InvestmentInsightsTamil Жыл бұрын
1. Millionaire next door, Thomas J Stanley 2. Rich Dad Poor Dad, Robert T Kiyosaki 3. One up on Wall Street, Peter Lynch 4. Psychology of Money by Morgal Housel 5. Think and Grow Rich by Napolean Hill 6. Zero to one, Peter Thiel
@selvaraniganesan6417 Жыл бұрын
@@InvestmentInsightsTamil Thank you Vijay!
@yellowNred Ай бұрын
English version?
@sarujanview Жыл бұрын
IRP- insured retainment plan it’s a Tax free plan now I’m contributing 100$ month for 30 years limit I’m insured with 500,000 dollars additional I can get 200,000$
@arunmohanaranghan5336 Жыл бұрын
Hello Mr.Vijay, great video series, and kudos to you for sharing valuable information. I have transferred from 401k to Rollover IRA from my previous employer. So am I left with no option of using Backdoor Roth? Or is there a workaround to this problem?
@InvestmentInsightsTamil Жыл бұрын
The only work around is to move the Rollover IRA balance into your current 401K.
@divyabons9797 Жыл бұрын
Sir, I have plan to invest SIP for long term Pls review my portfolio is it correct Index fund : 1. ICICI Prudential nifty index fund 1500 2. Navi nifty 50 index fund 1500 Large Cap fund : Mirae asset emerging bluechip fund -1000 Flexicap Fund : Motilal oswal Flexicap Fund 1000 ELSS : Canara robeco equity tax saver fund - 1000 SMALLCAP FUND : Axis Small cap fund 1000 Pls give ur suggestion on my portfolio Can I do any changes here Pls reply me sir 🙏
@mageskk 6 ай бұрын
Thank you for the video with good explanation. Question: Backdoor Roth IRA - How come the 401k After Tax amount moved to Roth IRA for the same year before the full 401k After Tax for the completed ? Is that possible to move After Tax amount contributed on year 2023 to ROTH IRA using Backdoor in Jan 2024 ?
@InvestmentInsightsTamil 6 ай бұрын
Moving After tax 401K into a Roth IRA is Mega backdoor Roth. It was covered in "After Tax 401K/Mega Backdoor Roth/Fund Selection: kzfaq.info/get/bejne/d62pisZ4lpaVd6c.html ".
@KarthikeyanRamaswami Жыл бұрын
All covered but you missed to explain about ‘Rollover IRA’… If we have a Rollover IRA account, then we can move the previous 401ks to Rollover IRA and can still Maintain our personal IRA ACCOUNT $0 (for Backdoor Roth IRA) ?
@InvestmentInsightsTamil Жыл бұрын
Did you skip the video? Rollover IRA is covered in 07:27. And No, if we have any running balance in any forms of pretax IRA (including Rollover IRA), we cannot do Backdoor Roth.
@yourganesan Жыл бұрын
Hi Vijay a great video as usual! One question- if the spouse is not working in a married filing jointly situation and if the total income exceeds the limits, can the working spouse or at least non-working spouse contribute to either IRA or Roth IRA and get either pre or post tax benefits respectively? Appreciate your answer
@InvestmentInsightsTamil Жыл бұрын
IRA: Married filing jointly and if the spouse is covered by retirement plan at work then full deduction for the non-working spouse if the income is less than 218K for 2023 and 204K for 2022. Roth IRA: Either of you can contribute only if the income is less than 218K for 2023 and 204K for 2022. www.nerdwallet.com/article/investing/ira-contribution-limits
@prabhukumarasamy5556 Жыл бұрын
Hello Vijay, Thanks for the informative video. I got to know the benifit of Roth IRA lately. Is there an option to transfer the 401k to ROth IRA while changing job ?
@InvestmentInsightsTamil Жыл бұрын
From regular 401K to Roth IRA? You can, but you have to pay the tax on your highest tax bracket as the amount you are moving is from pretax to post tax. I would not do it. I would suggest to have it in IRA and you can move from IRA to Roth any time - so you can move into Roth when you have a slow year (low income year).
@nithyasundar84 2 ай бұрын
I have traditional IRA which is 3rd option you mentioned (moved 401k from different company). So I cannot do backdoor roth at all? since I cannot have zero balance in my IRA?
@InvestmentInsightsTamil 2 ай бұрын
Yeah, you cannot. See if your current 401K plan lets you move the IRA assets into its plan. If they do, better to move it over so that your balance can become 0.
@prasannasrinivasan7536 Жыл бұрын
Sir question. Scenario. If I have a solo 401k ans contribute max as per irs limit. Can I put in backdoor ira
@InvestmentInsightsTamil Жыл бұрын
I am sure you can. But still double check with your tax advisor.
@karthikeyanu6270 6 ай бұрын
Hi Sir, Thank you for your great guidance and especially for Tamil community. Can you please make a video for Custodial ROTH IRA? If the Kids are small, Can Parents contribute to kids Custodial ROTH IRA? or they should have some earned income? Please advise.
@InvestmentInsightsTamil 6 ай бұрын
Only earned income can be contributed to a Custodial Roth IRA. www.nerdwallet.com/article/investing/why-your-kid-needs-a-roth-ira
@a.sathishplk Жыл бұрын
Sir video for india🇮🇳
@InvestmentInsightsTamil Жыл бұрын
Adutha episode la irunthu...
@manijay7912 Жыл бұрын
Hello Vijay, let's say in traditional IRA, year starting, I invest 6.5K. In the year end, while doing backdoor, my 6.5K is now 7K. When I rollover for the same year, how does the IRS consider additional $500 growth? Appreciate your effort. Thank you so much.
@InvestmentInsightsTamil Жыл бұрын
That is why it is important to roll over immediately into Roth when doing a backdoor. For a $500 gain, you will have to move that as well paying tax at your maximum tax bracket for that gain. Not a good idea.
@manijay7912 Жыл бұрын
@@InvestmentInsightsTamil Hmm, last year theriyama appadiye vittachi. Just realized before tax filing and did. But this year, doing neck to neck transfer quickly from checking to IRA to Roth. And planning to invest in index and blue chip stocks. As the market is still down, I feel, it's better to invest in the first quarter itself. Who knows which time is the real bottom turning point!. Suggestions are welcome please. 🙂
@deekshith2657 17 күн бұрын
Hi Vijay, how are you? I have a question regarding backdoor IRA. Can I have more than one IRA? I did move my previous employer 401k to my IRA, am thinking to open another IRA and use it for backdoor Roth. Please advise
@InvestmentInsightsTamil 17 күн бұрын
If you have running balance in ANY pretax IRA, then you cannot do backdoor Roth.
@sundarmeha Жыл бұрын
Thanks for the video. I have a question, wife and I are working and the MAGI would be between 109 and 204. so we are not eligible to get tax deductions on IRA contributions. But say I contributed towards IRA every year, on withdrawal after retirement would I be taxed again. How IRS find out I did not get tax deductions while contributing? Hope I am clear
@InvestmentInsightsTamil Жыл бұрын
IRA by definition means, that you will be taxed when you withdraw. Tax rate varies depending on the amount of withdrawal. So yeah, you will be taxed on withdrawal.
@sundarmeha Жыл бұрын
@@InvestmentInsightsTamil Thank you! Then its double taxed. First since we do not fall under IRA tax bracket and second when on withdrawal
@medvijay1984 Жыл бұрын
Hello Vijay , Can I open a Roth IRA or IRA account for my spouse who has only ITIN not SSN ?
@InvestmentInsightsTamil Жыл бұрын
Yes, you can. www.bogleheads.org/forum/viewtopic.php?t=62472
@user-nb1hn9ij2q Жыл бұрын
We are married filing jointly. I have rollover IRA from my previous employer and hence not eligible for Backdoor Roth. My husband does not have any roll over IRA. Can we still do backdoor roth though we are married filing jointly?
@InvestmentInsightsTamil Жыл бұрын
Just your husband can do.
@sabarishananthanarayanan2765 Жыл бұрын
Sir one dout, so let's say I have 50-50 % in 401k,, I am going back to India, can I rollover the 401k to Roth IRA ( 1 year after to reduce tax slab) and then take out the principle without paying any penalty ? Is this possible ? And if there is someone who has rolled over the 401k to IRA and wants to to a backdoor IRA can he transfer his money back to a new employer's 401k ?
@InvestmentInsightsTamil Жыл бұрын
1. You can take out the principal only after 5 yrs of Roth IRA rollover without penalty/tax. There is a strategy people follow to do a systematic withdrawal before retirement - Roth conversion ladder: www.investopedia.com/how-roth-conversion-ladder-works-5214808 2. Yes, you can, if your new employer's 401K plan supports that. Check with your plan administrator.
@mail2sureshbabu Жыл бұрын
Sir.. Jan I contributed 6k to Roth . But wife not working at that time. Now she works and we go above the max limit. How can I re do my action of 6k Roth input. All the spy that I got using Roth is in loss now. What can I do to reverse this?
@InvestmentInsightsTamil Жыл бұрын
As far as I know, you can just withdraw the (contribution - loss). www08.wellsfargomedia.com/assets/pdf/personal/goals-retirement/taxes-and-retirement-planning/correct-excess-IRA-contributions.pdf
@rgsivacts Жыл бұрын
Is it a good option to enroll for automatic rebalancing in IRA with a 1% service fee? Since I do not follow the market regularly, will this hands-off option be helpful? Pls advice.
@InvestmentInsightsTamil Жыл бұрын
What are you invested in? I don't see a reason for rebalance unless you are close to 50.
@rgsivacts Жыл бұрын
@@InvestmentInsightsTamil I changed my employer last year and still keeping my 401K balance in the same account. Thought of moving it to my new employer 401K or moving it to IRA. I understand that if my move my 401K balance to IRA, I can't invest in Backdoor IRA. If I choose to move my 401K balance to IRA, what kind of index funds (if I am a moderate aggressive investor) I can choose to invest in IRA account. Pls advice.
@InvestmentInsightsTamil Жыл бұрын
@@rgsivacts If you are moderate aggressive, I would suggest to go with 50% QQQ and 50% VTI.
@chiit70 3 ай бұрын
Hi Mohan Sir, Good morning, I am your follower for long time, i am happy to see all your valuable video , Kindly hemp me to understand one point pl I have transfer my old employer 401k balance to IRA Account with A bank ( they are maintain my account), again i have new 401K balance with current employer. My question is to user Backdoor Roth IRA option ,can i create one more new Traditional IRA account with zero $ running balance for new 8k transfer and then to ROTH account on same year
@InvestmentInsightsTamil 3 ай бұрын
No, you cannot. There should not be any balance in any form of pretax IRA in your name. You can look into options to roll over your IRA into a 401K. Many 401ks allow that. You can do the backdoor only after moving the money out of IRA.
@chiit70 3 ай бұрын
Thanks for your reply and your advice ❤❤❤
@damukeesh Жыл бұрын
Sir I'm planning to invest in Roth 401k let's say I'm planning to invest $10k/year. 1. Can I Rollover to Roth IRA every year ? Or at the time of leaving my current employer can I rollOver entire amount to Roth IRA 2. If I can Rollover to Roth IRA. Can I withdraw Contributed amount Penalty free ?
@InvestmentInsightsTamil Жыл бұрын
1. You can rollover only after you leave the job. 2. Yes, you can. But you need to wait 5 years after the roll over.
@hiteshbhagat723 Ай бұрын
Hello Vijay, can you please make videos in English language
@InvestmentInsightsTamil Ай бұрын
There is a separate channel for English. Check it out.
@xxxlh1 Жыл бұрын
@ 2:58 sec; If someone makes over 129k per year and his wife is not working, in that condition can that person invest 6k in his Roth IRA (no tax deduction) and 6K in his Wife's IRA account and still manage to get tax deduction ? Please clarify...
@InvestmentInsightsTamil Жыл бұрын
Yes, you can. "If the income earning spouse is covered by a workplace retirement plan, then the following rules apply: If your income is $204,000 or less, you can deduct the full amount of your contribution. If it is between $204,000 and $214,000, you may be eligible for a partial deduction, but if you make above $214,000 you can not deduct any amount of your contribution from your taxable income." www.forbes.com/advisor/retirement/spousal-ira/
@sathish2song Жыл бұрын
Is it possible to transfer 401K to my IRA while I am still working for the employer and still contibute ? Can just tanrsfer current balance to my IRA account and manage it?
@InvestmentInsightsTamil Жыл бұрын
Most of the employers will not let you do that. See if your plan allows in service distribution.
@sathish2song Жыл бұрын
@@InvestmentInsightsTamil thank you
@ananthalakshmanan8348 11 ай бұрын
Hi Sir I just created my traditional Ira and Roth IRA account in my fidelity ..They are having zero balance.. Now I want to transfer my existing 401 k (old my previous employer) amount to traditional Ira on this year …in the same year can I move the money to my Roth IRA and my wife Roth IRA account from the traditional IRa without paying tax..
@InvestmentInsightsTamil 11 ай бұрын
No, you cannot do that. Any move from pretax accounts (Traditional IRA) to Post tax accounts (Roth accounts) will result in paying taxes for the money moved. Also, you cannot move from your account into your wife's account. Both are individual accounts.
@ananthalakshmanan8348 11 ай бұрын
@@InvestmentInsightsTamil Thank you so much Sir .. So I can move the money from 401k to Traditional IRa …
@InvestmentInsightsTamil 11 ай бұрын
@@ananthalakshmanan8348 Check with your brokerage. They will probably ask you to open a rollover IRA to move the money from 401k.
@ananthalakshmanan8348 11 ай бұрын
@@InvestmentInsightsTamil Thank you sir
@sambuvanking7784 Жыл бұрын
1) நான் இவ்வாண்டு 401Kஇல் $20,500 செலுத்திவிடுகிறேன் அப்படி உள்ள போது நான் இவ்வாண்டு IRAவில் $6,000 போடலாமா? 401K வையும் IRAவையும் ஒரே நேரத்தில் வைத்துக்கொள்ளலாமா? 2) இப்போ நான் Disabilityஆல் எந்த வேலைக்கும் செல்லவில்லை, Disability Social Security வாங்குகிறேன். பணியிடத்தில் கொடுத்திருந்த 401K வை IRAஇக்கு Rollover செய்துவிட்டேன். அப்படியுள்ள போது நான் Rollover IRAவில் ஆண்டு தோறும் $6,000 பணத்தை போடமுடியுமா? இப்போது Roth IRAவில் ஆண்டுதோறும் $6,000 போட்டு வருகிறேன். Rollover IRA and IRA இரண்டிலும் பணத்தை செலுத்தலாமா? 3) IRA and Roth IRA இரு கணக்கையும் ஒரே நேரத்தில் வைத்துக்கொள்ளலாமா?. வைத்துக்கொள்ளலாம் என்றால் இரண்டிலும் $6,000 செலுத்தலாமா? (மொத்தம் $12,000). உங்கள் பதில் வேண்டி, நன்றி
@InvestmentInsightsTamil Жыл бұрын
1. வைத்து கொள்ளலாம். 2. Rollover IRAவில் 401Kஇல் இருந்து மட்டும் தான் Rollover பண்ண முடியும். நம்மால் அதற்குள் தனியாக பணம் போட முடியாது. Roth IRAவில் ஆண்டுதோறும் $6,000 போடலாம். 3. வைத்து கொள்ளலாம். ஆனால் இரண்டிலும் $6,000 செலுத்த முடியாது. மொத்தமாக $6,000 செலுத்தலாம்.
@kayalvizhi4 Жыл бұрын
@@InvestmentInsightsTamil I have over 10K in my Rollover IRA transferred from different companies 401K. Can I still contribute to Roth IRA for 6K$ through backdoor? I see one of your slide says you cant do backdoor if you have rollover IRA
@sambuvanking7784 Жыл бұрын
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