Roth IRA at Charles Schwab: 2024 UPDATED Guide (Open, Contribute, Invest)

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Күн бұрын

This step-by-step video covers how to open, contribute to, and invest in a Roth IRA at Charles Schwab, updated entirely for 2024. Getting started investing can be daunting, but Roth IRAs are a great option for beginners. They are accessible to nearly everyone with earned income and allow you to grow and invest your money completely tax-free. After opening and contributing to a Roth IRA, it is really important for beginner investors to INVEST their money if they want it to grow for retirement. Charles Schwab makes this whole process very easy and this video walks through each step in detail. Roth IRAs are also great because unlike any other retirement account, the IRS allows you to withdraw your original contributions (not the gains) at any time, at any age, with no penalties or tax. Roth IRAs have some limitations like maximum annual contribution limits and a 10% early withdrawal penalty (for the gains) if you withdraw before age 59.5.
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⭐ USEFUL LINKS ⭐
► Open a Roth IRA at Charles Schwab: www.schwab.com/ira/roth-ira
► Investment Timeline Calculator: www.calculator.net/investment...
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✔️ WATCH NEXT! ✔️
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👉 Follow me on Instagram! / alexraefinance
🔴 Subscribe for more personal finance videos: kzfaq.info...
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🕒 TIMESTAMPS 🕒
0:00 Updated 2024 Charles Schwab Roth IRA Guide
0:39 Why are Roth IRAs so great?
3:58 Limitations of Roth IRAs
6:57 How much could you earn in a Roth IRA?
7:51 Step 1: Open a Roth IRA at Charles Schwab
10:46 Step 2: Contribute to a Roth IRA at Charles Schwab
12:17 Step 3: Invest in a Roth IRA at Charles Schwab
18:24 Automatic Investing in a Roth IRA
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Disclaimer: This video may contain affiliate links, meaning that if you purchase a product I may receive a commission at no additional cost to you. I do not share any resources, products, or services that I do not personally use and believe in. I am not a financial advisor nor a tax professional. The content presented in this video is for entertainment and educational purposes only.

Пікірлер: 140

@robertschrader 2 ай бұрын

I am embarrassed to say that I am 39 and just now getting a Roth IRA opened. I shouldn't still be a newbie at my age, but I'm so thankful I found your content to help me navigate these new seas.

@mojazzyhair 2 ай бұрын

Don’t feel bad! I started at 44. Wasn’t educated on these types of things neither..Better late than never 💯🙌🏾

@bbthao Ай бұрын

Me, too.

@vivalasylvia Ай бұрын

I just opened mine last year (36) and I had no idea I had to invest the money in my account (d'oh!). Trying to learn as much as possible now!

@richardbernhard3373 Ай бұрын

That’s OK I’m 60 and I just opened one three days ago. It’s never too late.

@MrSane-ps2sh Ай бұрын

You're ahead of the game. i'm 54 and just opened my 1st Roth this week :( but better late than never :)

@joshuarosenberg1528 3 ай бұрын

Please dont stop making videos. been looking for a simply explanation on Roth IRAs and how they work and this did it! thank you!

@youngryder9367 4 ай бұрын

Got really happy seeing a new video of yours on my feed 😊 Hope you’re doing well!

@joycetheis6302 4 ай бұрын

Fantastic step-by-step guide to truly getting "invested" in IRA's, especially the ROTH IRA. Everyone who has not started investing for retirement, young or older, this is a MUST SEE! Great job, Alex Rae!!!

@timtheis9840 4 ай бұрын

Nicely done. Very informative!

@drewsdrawers 3 ай бұрын

I will do this tomorrow. Thank you for the guidance

@mariapedro662 Ай бұрын

I am 44 and just opened a Roth IRA acct, too. Better late than ever, indeed.Alex Rae, thank you very much for keeping us educated on this very important matter.

@astralyzy7726 4 ай бұрын

This helped so much ty!!!

@maitriunjia318 4 ай бұрын

Very detailed and well structured! Perfect video for beginners. Amazing job!

@Jupiter_Crash 3 ай бұрын

Miss your expertise so Thxs for posting!

@Andyg2g 4 ай бұрын

At long last! A new Alex Rae - Personal Finance video! So glad to see you back!!!

@LostinMinnesota 4 ай бұрын

Stumbled upon your video on trying to learn how to get a Roth with Scwab. This was amazing. Thank you

@antonsawyer1741 3 ай бұрын

Thank you so much for this video,helps me clear lots fo confusion on how to open a roth ira. I'm going to try to watch more of your vids regarding 3 fund portfolio,, 👍

@chrislancaster1982 3 ай бұрын

Thank you for doing this video. Very helpful.

@miluardo 4 ай бұрын

You're back!

@f.prince7211 3 ай бұрын

Such a helpful video! Thank you!

@CoolManDudeRN 3 ай бұрын

Thank you!

@clovercreative 3 ай бұрын

I used your original video to help me get started! I am thankful I started a few years ago

@moniquemikayla9021 3 ай бұрын

I opened a ROTH IRA a few months ago and I didn't invest. I have done the research before, but I ended up having more questions. I didn't know what to invest in and you really helped with the next step. Thank you!!!

@annalysac435 2 ай бұрын

This was so helpful and exactly what I was looking for. Thank you!

@johnmccormick1947 3 ай бұрын

thank you for making this video! im going to setup my account and begin to invest tomorrow. im 30 years old and waited too long to get something like this started, and I look forward to learning more, investing and watching my money grow!

@Labellaunique Ай бұрын

So informative, thank you!

@romanceenhancer1 3 ай бұрын

Great video!

@slicklizardchamp 26 күн бұрын

I had my Roth with Schwab for 2 years but moved it to Robinhood because of three items: 1. No automatic investing on a scheduled basis. You can automatically add money to the account but you can’t automatically buy an ETF or whatever. So it was a pain to remind myself to buy. 2. Can’t buy a fractional share of an ETF, etc. Back to the pain in the butt thing above. 3. The 3% IRA march at RH is great and I also love their app layout and they have a widget feature so I can see my portfolio right on my Home Screen without going into the app. Schwab is a good brokerage and I’d go back but they need to make automation easier because that is why I left!

@k17m69 3 ай бұрын

This video was very helpful and informative for someone who is opening an IRA for the first time!

@angeleyh1468 2 ай бұрын

omg this is sooo useful!!!!! thank you for doing this!!!!

@jeremypincock323 2 ай бұрын

Thank you very easy now

@eightysevenhtx 4 ай бұрын

I found a new channel to watch as a beginner opening up a Roth IRA and brokerage account.

@BellaBillini Ай бұрын

ok, this video deserves so much more views. this was excellent! sharing on FB. thank you!

@katherineo7033 3 ай бұрын

thank you so much. thanks to you I started investing. y ou made it so easy for people like me who don't know. thank you !!!!!

@fridaspremium7310 Ай бұрын

Great video! Incredibly well explained.

@MsLanny9 2 ай бұрын

Thank you so much for explaining this in a step by step way. I'm really late but better now than never.

@rmp2012 Ай бұрын

I cannot thank you enough for this video... I have been searching for weeks on how to actually make investments on the money I've invested into my Roth IRA and was not able to find anything until your video. THANK YOU!

@JennaJenna555 22 күн бұрын

Thank you for going into detail great video.

@chamo310 3 ай бұрын

This was so incredibly helpful! I had no idea how to go about setting up an account at Schwab, much less funding it or investing in it. With your step-by-step, I was all set in a matter of minutes! (I do have to wait a couple of days till my first contribution clears, but other than that, I feel super comfortable navigating the account and ready to start investing. Thank you!

@AlexRaePersonalFinance 3 ай бұрын

That's fantastic! I bet Schwab just makes you wait on the first transfer (to make sure everything checks out with your bank).

@lashawannajoyner5993 Ай бұрын

This is absolutely the best,easy, simplest video I've seen.. very very easy to understand.. thank you for taking your time to explain this! OMG...sooooo needed this

@janismcgowan9283 3 ай бұрын

Thank you, very helpful. Do they (Schwab) offer investment advice on how to rebalance your portfolio once you have a roth opened with them?

@lotamama3859 3 ай бұрын

Opened up my Roth IRA at TD Ameritrade then Schwab swallowed up TD.

@slimdilly_ 2 ай бұрын

whats the implication here

@kojivsleo 2 ай бұрын

Thanks for the guide, started my account the day I found this.

@Blackcatlucky137 2 ай бұрын

That's true thank you! U are best!

@ProductResearchVirginia Ай бұрын

Thank you, very informative. Thinking on starting a roth ira but im 55 years old... too late to the game? Any advice would be appreciated.

@nickolguin1241 2 ай бұрын

Thank you for the video. I was lost.

@user-xk1yw2yt2f 3 ай бұрын

could you go over investments like etfs that have already been invested in and how each gains or contributes to your overall account?

@cameronm7445 Ай бұрын

Clear, concise, and informative. Thank you for the awesome work and helping folks like myself.

@boxbrown4755 11 күн бұрын

Awesome as always. Please keep doing what you are doing!

@nataliamiranda7960 3 ай бұрын

One time transaction? And leave it? The Found portfolio will take the money from my account every month? Week? I just opened the IRA

@cheezsticks2071 Ай бұрын

amazing video thank you so much :3 also if im putting in $583 a month, do i split the shares 60/40 like you using SCHB & SCHF?

@123meyca 3 ай бұрын

YES PLEASE THANK GOD FOR YOU!!! I LOVE YOU!!!! TOTALLY AWESOME CONTENT COMING FROM AN ASPIRING FINANCIAL PLANNER AND ACCOUNTANT.

@Carandiru1992 2 ай бұрын

Great and easy to understand video! I contribute to a Roth 401k . I have been thinking about opening a Roth IRA. Because I want to get that five year rule out of the way. I won't be actively trading and will be investing for the long term. And I would like low fees. Since you have used Fidelity , Vanguard and now are using Charles SCHWAB. Which one would you recommend? Thanks

@donguadalucio1405 2 ай бұрын

What if I want to trade options? Can I do it with the Roth IRA?

@julianschianodicola4301 9 күн бұрын

This is such a great video! Thank you for the easy tutorial

@simoneduncan8875 3 ай бұрын

Thanks for your help, Alex. What a selfless service you are providing. ☺️🙏🏽 I would love to see a video on purchasing fractional shares on the S&P 500 as well.

@AlexRaePersonalFinance 3 ай бұрын

Thanks for watching! I'll add it to my list!

@arcelynjosue304 3 ай бұрын

Hi Alex! I have come across to your videos while searching about ROTH IRA. Your video helps me a lot but i have more questions concerning ROTH IRA.

@arcelynjosue304 3 ай бұрын

What happens if a person has already contributed the max amt of $8000 to his ROTH IRA acct for 2024 but his annual income is more than $161k? Does he have penalty ? What is the best thing to do? Widraw his money from his ROTH IRA acct?

@curesnow6493 2 ай бұрын

Hi Alex. Thanks for your video. When I was placing order for SWPPX, I don’t know what to select for “reinvest type” on Charles Schwab Roth IRA. Should I select “dividends and capital gain”?

@chadbelcher6208 2 ай бұрын

Yes.

@user-zx3om8dd1t 2 ай бұрын

Loved your video. I have a 401k. Had it for almost 10 years at my job. Do you think I should open a Roth. Let me know. Your video was well explained. Thank you.

@amodjmanga8512 2 ай бұрын

I currently have a Rollover IRA with Schwab. I am thinking of also opening a Roth. Is it possible to add a Roth as second account without opening a whole new brokerage account?

@LinoPR-ds2ke Ай бұрын

My only confusion is after I have invested what happens if every month I add money, what happens when you make a deposit to the Ira, do you buy more investments or leave it aloe and does it grow by itself

@farshadrozati5334 3 күн бұрын

Once you get the funds transferred from your Roth IRA to a stock/etf would it still count underneath the Roth IRA category? I am guessing it should and that we should still have the option to withdraw our contributions (not earning) at any time as long as the value of the stock hasn't gone down.

@AlexanderBlanch 2 ай бұрын

Hi I’m newbie can you help me I’m in the part of ordering the Us base index fund etf But I’m trying to search the 1 international index fund And bond fund Sorry I’m a newbie newbie

@rizzxx7 2 ай бұрын

Thank you so much. I wish there was a way the money going into Schwab from my paycheck biweekly to automatically go into SCHB without me having to do it manually

@alrocky 2 ай бұрын

Schwab does have an Automatic Investment Plan with $100 minimum transfer.

@tryhardgaming1428 3 ай бұрын

If you are doing the 3 fund portfolio strategy, would you purchase more shares from each of those funds every time you make a desposit into the Roth IRA?

@AlexRaePersonalFinance 3 ай бұрын

Correct. There's no way to set it up automatically, unfortunately. If you choose to invest in mutual funds instead, Schwab does offer automatic investing with a limited selection of mutual funds: kzfaq.info/get/bejne/fNWHoN1p3d6ppqs.html

@alliecribbs2988 3 ай бұрын

Thank you for your video! Is there any way in Schwab to do a percentage based allocation as opposed to having to calculate the exact number of shares?

@AlexRaePersonalFinance 3 ай бұрын

Unfortunately not, I wish there was! I have been thinking about making a calculator in Google Sheets if that'd be helpful for my viewers. That way you don't have to do the math each time.

@alliecribbs2988 2 ай бұрын

Thank you! I wish they had it as well@@AlexRaePersonalFinance

@alliecribbs2988 2 ай бұрын

Also the google sheets calculator would be great!

@caseygordon3323 3 ай бұрын

Are you able to contribute to the 2023 tax year before April 15th even though I've already filed 2023 taxes or does it not matter?

@alrocky 3 ай бұрын

Roth IRA contribution does not affect your 2023 tax return so yes you can.

@GamingDaily 3 ай бұрын

Do you know or have heard of folks who open up more than one roth ira? is there a benefit to that or is there not much to gain from having multiples?

@AlexRaePersonalFinance 3 ай бұрын

Good question! The contribution limits are shared across all your accounts, so there's really nothing to gain by having multiple Roth IRAs. I would personally just have 1 Roth IRA for administrative simplicity.

@vroor32 2 ай бұрын

😮@@AlexRaePersonalFinancewhy no mention of webull?

@GraceJones-nr7en Ай бұрын

not clear how to fund to fund transfer HSA to HSAB in Schwab can you help

@nippy626 2 ай бұрын

this helped a lot, thanks alex!

@armanirios385 3 ай бұрын

Just opened my Roth IRA at 20 - I have a money market account with a couple grand - should I transfer those funds to my Roth IRA instead? Thanks for an amazing video

@AlexRaePersonalFinance 3 ай бұрын

Totally up to you, but a Roth IRA is definitely a great place to park extra money!

@peirpoint56 23 күн бұрын

Great video and wish more younger people would start investing in either 401k or IRA. you don't want to rely on the government to send you a check monthly because its not enough to survive on.

@seanprice7408 3 ай бұрын

OK this may sound like a really stupid question lol but when you first set up your account can you put a large some initial amount in there before doing the yearly $7000? Like if I set up an account can I initially deposit 10 K or 20 K and then set my account? If that makes sense? Someone please advise lol

@AlexRaePersonalFinance 3 ай бұрын

Not a stupid question! No, you can't do that unfortunately. You can only contribute the yearly max. Since it's before April 15, you could put in $6,500 for 2023 (the max last year) and then separately $7,000 for 2024 (the max this year). The IRS doesn't care whether you invest that money or not... they only care about whether it was contributed to the IRA. That's the thing that counts toward the annual limit.

@frankburklin1116 Ай бұрын

Can i withdraw from a 401 and place in a ROTh. I'm assuming it wil be taxed on withdrawal which would happen in any case , whereas if it came out of my payroll wouldn't it be taxed twice.once on payroll and then again when deposited in the Roth.

@alrocky Ай бұрын

Withdrawal from 401(k) subject to 20% federal tax so best to roll to traditional IRA then convert to Roth IRA.

@mikedowell8465 2 ай бұрын

I have a IRA with Fidelity that is "professionally managed" by them. I spoke with my Financial Advisor today and he mentioned I'm doing just fine the way things are as opposed to managing the IRA by myself. Any thoughts?

@alrocky 2 ай бұрын

What is their fee for managing your IRA?

@jheunizhernandez643 Ай бұрын

Silly question - if you pull from your Roth IRA, do the gains remain in the account? Or do you lose that if you withdraw your contributions in case of emergency?

@alrocky Ай бұрын

For tax purposes IRS calculates that you first withdraw contributions from your Roth IRA.

@Vegitobluuuuu 3 ай бұрын

Which choice is best Open account as : Brokerage Retirement Automated Investment Small business Checking Etc…

@rgbtrashcan9148 21 күн бұрын

This is probably a dumb question, but how can I tell what type of IRA I have on Schwab? The website just lists it as contributory IRA and does not say anything about traditional or Roth. Maybe it’s bc I don’t have any funds in there yet but I don’t remember being prompted to pick between the two

@alrocky 12 күн бұрын

Contact Schwab to verify if it's traditional or Roth IRA. Generally you want to favor Roth IRA especially if you're (Single) in 12% Federal Tax Bracket making less than $47k year.

@mcrayfourd 2 ай бұрын

robinhood is now offering 3% to transfer IRA account thats juicy

@Homerjr4 Ай бұрын

Well, I'm 54 and have been retired from the army since 2014 after serving 25 years, but this is the first time I'm opening a Roth IRA. What was I thinking? I do have a Robinhood account that I have been investing in for about 5 years, and I also have about $60,000 in a TSP (Thrift Savings Plan) which is the military's version of the traditional 401k account. My question is can I transfer my whole account to the Roth IRA account, or am I limited to only transfer $8000 ( 2024 contribution limit for my age) from it at a time per year? Thanks in advance.

@alrocky Ай бұрын

Assuming your TSP is a traditional (and not a Roth) TSP account, transferring (converting) it to Roth IRA is a taxable event which most of which will be at 12% federal tax so about $7,200 fed tax if you do so all at once. If you opt for direct TSP to Roth IRA there is 20% federal withholding so best to go t-TSP to traditional IRA to Roth IRA.

@robertj3116 23 күн бұрын

Great video. I am searching currently because my company gives me $5000 worth of company stock each year that goes into my 401(k) and I wanted to know how to move that stock. It is losing money currently so I wanted something more secure. I’ve only got 10 years left to work and I don’t contribute to my 401(k) because I don’t wanna lose this money . Can you transfer into a Roth IRA? Thanks

@luketagarao9787 2 ай бұрын

When you set up your monthly contributions, let’s say $100 a month, that would be $1200 a year. Could you make a manual contribution of $5800 to max out your contribution at $7000? Thanks for the video and the information that you share, it’s truly appreciated. Stay blessed!

@alrocky 2 ай бұрын

Q1 Yes

@JWookie4 2 ай бұрын

When do you pay taxes on the Roth? Does Charles Schwab take out the taxes every month or do you pay the government at the end of the year?

@AlexRaePersonalFinance 2 ай бұрын

There's no extra taxes on Roth contributions. The technical way to look at it is that you're using after-tax money contribute to a Roth IRA. Assuming you're a W-2 employee, your employer withholds estimated taxes from your paycheck. You use that money to fund your Roth IRA, just like you would buy groceries or pay rent. So it's not like you get double-taxed on Roth IRA contributions... you just don't get any tax *break* for your contributions like you would for a Traditional IRA. (And the Traditional IRA then taxes you on withdrawals, so it roughly evens out in theory.)

@BW-kv9wj 13 күн бұрын

So if I make more than the maximum to qualify, all I need to do is contribute $8000 a year into a traditional IRA then transfer that $8000 into the Roth?

@alrocky Күн бұрын

Complete Form 8606. Do you have traditional IRA balance from prior years?

@IamFunsize 13 күн бұрын

What if when you started you meet the threshold however fast forward you earn more and you are above the threshold for contributions what happens then?

@alrocky 12 күн бұрын

Are you familiar with backdoor Roth IRA process?

@IamFunsize 12 күн бұрын

@@alrockyno

@alrocky 12 күн бұрын

@@IamFunsize Anyone with earned income (a job) or who's spouse works may contribute to traditional IRA. One may convert any amount from their traditional IRA to Roth IRA. So if you're over the income limit to make a *_direct_* $7,000 to Roth IRA, you may contribute $7,000 to traditional IRA and then convert that $7,000 t-IRA to $7,000 Roth IRA. There is caveat if you have existing traditional IRA balance from years ago which will result in *_pro rata_* tax.

@Flampy1999 14 күн бұрын

Good video, but I thought she was dressed as a red shirt from Star Trek: TNG for a second :)

@talonkarrde2578 2 ай бұрын

It's Ironic that someone in an oversized Starfleet uniform is talking about money.... LOL. Kidding. Thank you for the information.

@Favlicious 3 ай бұрын

Can open Charles Schwab while in Africa

@laconsultant Ай бұрын

Why would anyone get a non-Roth IRA, taxes only go up astronomically each year.....

@tamarraj Ай бұрын

Some people are currently in very high tax brackets and contributing to a traditional IRA helps to reduce that tax burden. And when they do have to withdraw from the IRA they may likely be in a lower tax bracket.

@LinoPR-ds2ke 3 ай бұрын

She forgot to show us how to buy bond fund

@AlexRaePersonalFinance 3 ай бұрын

Same process as the other two ETFs. I just chose not to purchase a bond fund because of my younger age. The 3-fund portfolio often starts with just 2 funds (US and international), then you add the bond fund as you get closer to retirement. This video has a lot more info on the approach! kzfaq.info/get/bejne/o-BpkrRh3La-ooU.html

@nataliamiranda7960 3 ай бұрын

I got it Schwab won’t invest my money automatically

@chrislancaster1982 3 ай бұрын

Ok?

@stevedice5963 3 ай бұрын

Try the robo advisor for the Roth. Works for me. In the taxable brokerage account you should be able to set up direct deposit and auto invest into an index fund. Chat with a representative!

@KLVRSN7 2 ай бұрын

Este banco esta perto de falir . Porque esta mandando demitindo funcionarios ????😢😢😢😢😢

@sfbay998 Ай бұрын

Hi Alex, if I open the Roth IRA the very first time, is there a maximum limit I can put as my starting balance? Can i open a $100,000 Roth IRA to start? Not limited by the $6500/ year limit?

@alrocky Ай бұрын

You may contribute $7,000 to your 2024 Roth IRA.

@user-bq7qz5gh5p 2 ай бұрын

Hi Alex, I made a 6,900k deposit into Roth IRA and contribute $120 a month. Is this a good idea ? ( im 36 ) and hope to retire at the age of 65.

@alrocky 2 ай бұрын

Q1 no, not a good idea as contribution limit for 2024 is $7,000 so you're over the limit.

@Shirleybird65 2 ай бұрын

In 40 years 1 million probably won’t be worth more than 300 thousand.

@AlexRaePersonalFinance 2 ай бұрын

Average stock market return is about 10%. We assume we lose 3% to inflation for a total standardized growth rate of 7%. Assuming all historical trends stay the same (which is a big assumption, I understand), mathematically that means your account balance will be higher than $1M but it will *feel* like $1M feels today.

@carltonjoatech 26 күн бұрын

A Roth IRA only produces higher aftertax returns if your tax rate is higher during retirement when you are not working than when you are working. While it is possible to be in a higher tax bracket during retirement when you are not working, I don’t think many people fit that situation. Most retirees will report less tax able income during retirement than they do while they are working. Example: 40-year-old invests 1,000 a year in a Roth and $1,000 a year in a regular IRA for 30 years. Let’s assume a tax rate of 30% a year for the entire 30 years, and an earnings rate of 8%. At age 70, he pulls all the money out of both investments. Here’s what happens. Roth = $700 a year at 8% for 30 years = $86,642 minus 0 taxes = $86,642. Regular IRA = $1,000 a year at 8% for 30 years = $122,346 minus $36,704 taxes = $86,642. See, the same exact amounts. There is no difference between a Roth IRA and Regular IRA unless the tax rates are different when you invest and divest. Now assume the tax rate when you are retired and withdraw your funds is lower - 20% for example, and this is what you get: Roth = $700 a year at 8% for 30 years = $86,642 minus 0 taxes = $86,642. Regular IRA = $1,000 a year at 8% for 30 years = $122,346 minus $24,469 taxes = $97,877. You see, the regular IRA typically nets you more money than a Roth IRA. The only time a ROTH IRA is the better choice is when you pay more taxes in retirement than you did when fully working, which usually does not happen. Most people don’t understand this concept. Caveat (Roth IRAs do make sense if you contribute to them when you have a low tax rate, such as when you first start working. But once you climb into high tax brackets, Roth’s make little sense. Also, contributions to Roths are limited by the IRS depending on your income level.) My advice is to have both, and contribute to the Roth during lower earnings years, and to your regular IRA during higher earnings years. J. Carlton Collins, CPA (Non active CPA) (Retired CPA)

@hoosier_daddy65 Ай бұрын

Question is this. I'm single getting married in 2024 - going all ROTH with company match.. may hit the $7k limit every year. I don't; want to be penalized by the IRS if I go over. Do I just watch it and if I get close to max limit ROTH (7K) move it to Tax Deferred if I'm still in the same year? Assuming tax year is april to april? help ?

@alrocky Ай бұрын

If worried about exceeding Roth IRA income limit just use back door Roth IRA process (contribute traditional IRA and convert to Roth IRA). Caveat if you have existing traditional IRA.

@hoosier_daddy65 Ай бұрын

@@alrocky well I do the 403b company retirement all ROTH ... I'm only in my early 20's - so I guess in need to contact them to see what my steps are of not going over .. maybe just a percentage to stay under each year and then do tax deferred on the rest.

@alrocky Ай бұрын

@@hoosier_daddy65 To clarify your company's 401(k) allows you to contribute maximum $23,000 and maximum contribution to Roth IRA is $7,000. The IRA "year" is 15.5 months so you have from Jan 1 2024 to April 15 2025 to contribute $7,000 to your 2024 IRA.

@hoosier_daddy65 Ай бұрын

@@alrocky TY !