Thanks Travis! This is very detailed and it's nice to know I can replay it whenever I want. Putting the final touches on the 2019 return before the October 15 deadline. It's been a strange extended tax season to say the least. You're the best.
@YesYuko3 жыл бұрын
I like how your voice is so catchy and clear
@estebanalaniz18503 жыл бұрын
Key is tax brackets if you invest when your young you will most likely be in a lower tax braket however as your career advances your tax braket may be much higher saving more money trough a Roth IRA . Key point is if you see your tax bracket changing in the future by the time you retire.
@JustJami743 жыл бұрын
This was extremely helpful. Thanks, Travis!
@sabinejnpierre2468 Жыл бұрын
You are awesome your video is helpful thank you for your explanation
@TravisSickle Жыл бұрын
You are welcome!
@claudiarodriguez54652 жыл бұрын
This was super helpful! Thank you!
@SoulSurvivors868 ай бұрын
Hi Travis. Can you stack retirement accounts outside of your IRA? I have a Roth IRA, but I am maxing contributions at the start of each year. Can I open something else, like say a 401K or 403B or something and have an entirely separate growth account going alongside my Roth IRA? So when I go to retire I will have a stack of different retirement accounts to draw from? Thanks again!
@chulasexychica113 жыл бұрын
Is sep ira same as traditional ira??,
@leiabeekley80883 жыл бұрын
I'm a business owner with 10 employees. I currently have a Roth IRA, and plan on opening a Simple IRA(i know this video is about SEP) for myself and employees. I know i have to match them, but being i already have a Roth IRA, am I able to max out a Simple IRA as well? So $6k for Roth and $13.5k for Simple for a total contribution of $19.5k as the Employer?
@tricallyourmama2 жыл бұрын
Wsup Travis good looking on the video. For the sep, is the taxed amount on the gains or all money that is withdrawn including the principle? Can you help me better understand? Thanks
@TravisSickle2 жыл бұрын
SEP IRA can only be contributed on a pre-tax basis, therefore, all distributions are taxed as ordinary income. Don't think of this as a negative, just a fact.
@bhcbhc3 жыл бұрын
Is it worth converting SEP IRA to Roth IRA in a low income bracket year? Also how does it differ to converting from Traditional IRA to Roth IRA. It doesn't seem like I can do a backdoor Roth conversion from SEP, and is required to "sell" my shares for the year of the conversion instead of reporting as none deductible for the year prior like I can with Traditional?
@TravisSickle3 жыл бұрын
Conversions are not contributions. Yes it’s possible to convert and not sell positions.
@Jgheiler2 жыл бұрын
When we retire, is our tax bracket calculated also by returns in our investments in our sep ira account?
@TravisSickle2 жыл бұрын
no, only on distributions/withdrawals from the SEP. It will be as ordinary income.
@Parsa18373 жыл бұрын
I also have a question in regards to contribution. If the maximum amount it $6,000, is it possible to contribute money to traditional IRA and roll it over to Roth IRA in the same day?
@AceSpencer3 жыл бұрын
Not if the ROTH IRA is maxed out
@Parsa18373 жыл бұрын
Don't taxes always increase? So, wouldn't it be a bit riskier to have traditional or SEP ira since they're pre taxed as you may not know how the tax rate will be by the time you retire. Right?
@TravisSickle3 жыл бұрын
No, taxes do not always increase.
@TravisSickle3 жыл бұрын
Also, if you only use Roth contributions you may miss out of deductions or credits only available in the year of your contribution.
@Parsa18373 жыл бұрын
@@TravisSickle could you elaborate on that? Or if it's too long, it would mean a lot if you could make a video about it, appreciate it.
@TravisSickle3 жыл бұрын
@@Parsa1837 Watch this video. kzfaq.info/get/bejne/fM6UZcWI0p2ak5s.html
@TravisSickle3 жыл бұрын
@@Parsa1837 I have a ton of videos on why you should not just jump into using the Roth vs Traditional accounts but it's a great topic. I'll see if I can do another version later today or tomorrow.
@dfire24720113 жыл бұрын
Hey I have a question for you is there a law that states that you have to pay taxes it you can do a video on it
@TravisSickle3 жыл бұрын
Which taxes?
@chewyisfamoushaha3 жыл бұрын
wait, if I invest $1 into each account and turned in into $1 million, the SEP will be taxed $200k and the Roth was only taxed $.20? Is that correct?
@priestesslucy32993 жыл бұрын
Yup. Roth grows untaxed.
@christophersebastianpulido37453 жыл бұрын
As an employee- how can I contribute to the sep before it’s taxed... am I wrong to think that my income paid direct deposit has already been taxed ... so wouldn’t I paying double tax
@TravisSickle3 жыл бұрын
Are you a w2 employee or independent contractor?
@christophersebastianpulido37453 жыл бұрын
@@TravisSickle w2
@getyurliferight37032 жыл бұрын
GOD BLESS YOU 😂
@Highgrowthlabs3 жыл бұрын
English is my first language, I understand all of the words you are saying, but I still don't understand what you are actually saying. I would love to have a dumbed-down video on this "for dummies" where you go really slow and explain every single part in detail, as if you were explaining to a 3rd grader. XD
@johnayala99393 жыл бұрын
if you make alot over 500,000 a year as an individual can i have a ROTH IRA or is that not allowed
@nicholasolivas3173 жыл бұрын
If I made that much I invest some of that in Real estate or other businesses. :)
@BayArreaMami3 жыл бұрын
Only traditional but you can roll it over to roth later congress is trying to add laws to this hopefully it doesn't come down to that
@TravisSickle3 жыл бұрын
You can also do non-deductible and Roth 401k accounts all day long.
@usCalibration3 жыл бұрын
Travis. I like your video! It is well done and coming from a good place. However, your calculations and examples are not really correct Travis. The tax brackets are marginal tax brackets. You only pay the percentages on the amount above the limits, not on the whole amount. I have a feeling you are giving misguided advise to clients. To me, the decision comes down to the limits allowed on each account. Since the SEP limits are so much higher, that would be the preferred account on any small business that is making/reporting over $30k Net Income each year. That will ensure the FV is ultimately higher, regardless of the tax implications.
@TravisSickle3 жыл бұрын
Appreciate the perspective but respectfully disagree. Looking at the contribution limits of the SEP vs Roth IRA misses the concept. It's progressive taxation. The marginal bracket is the highest bracket you're taxed. It's how you should be thinking of this math as that's where the decision makes the most sense. I agree, it's very challenging to speak on a specific topic when there are so many other factors. All things being equal in considering the Roth vs. the SEP IRA, this is arguably the best way to conceptually understand it. Sounds like you're up to speed on taxes but I did a video on the brackets too. kzfaq.info/get/bejne/nJaEfNqku66saGw.html
@usCalibration3 жыл бұрын
@@TravisSickle I watched your other video and yes, that is what I was referring to on the marginal tax rate. Glad you know! :) Roth's are the way to go if you qualify (I don't) because you are not taxed on the plant, just the seed. So I would rather be taxed on the contributions, not the pile of money it can grow over time. So it makes sense to maximize the Roth each year, then contribute to the SEP accordingly with each allowable contribution (assuming net income fluctuates). It should be possible to do that and I believe that would be a good strategy for a sole proprietor. Thanks for your reply!
@TravisSickle3 жыл бұрын
There is really no right answer for everyone. That’s what I was hoping the take away was on this video. One of the biggest mistakes actually has nothing to do with the plans. It’s missing a credit or deduction that you could otherwise qualify had you looked a little closer and not blindly contribute to the Roth or pre-tax plan.
@nunz7772 жыл бұрын
But the fear is that in the future the tax will be HIGHER because our govmt spends money quicker than they collect it. Therefore Roth hedges for that future higher tax that is coming - and coming FOR SURE.
@TravisSickle2 жыл бұрын
I hear you but you're missing the point. It's not going to be higher for everyone. Think tax credits and deductions.
@bje08emoney2 жыл бұрын
@@TravisSickle Travis, what tax credits does one have when in retirement? How does one calculate what tax bracket they will be at retirement?