www.financialf... Roth IRA Distribution Rules www.martinsenw...
Пікірлер: 150
@johnscott2746 Жыл бұрын
This is one of the few videos about Roth IRAs that I have seen that is completely correct. Thank you for giving this vital information to people.
@ShutDFckOff4 ай бұрын
You can take your contributions without penalty, but of course it's my money but the earnings it accumulated will be with them (they will take the interests earnings it accumulates from investment while they sit around) until you turn 59.5 years old or you are dead ,lmfao! Fookin' genius legal Ponzi Scheme.
@BirSozben4 ай бұрын
if only all financial education content creators were as brief and concise as you are... thank you!
@KimberlyMargaretАй бұрын
Buying stocks might seem easy, but picking the right one without a solid plan is tough. I've been trying to grow my $100K portfolio, but the tricky part is not having clear plans for when to buy and sell. Any tips on this would really help.
@JacquelineTheresaАй бұрын
The strategies are tough for average people. They're usually done well by experts with lots of skills and knowledge.
@ChristopherAnthony-9Ай бұрын
@@JacquelineTheresa I agree. From my own experience with an investment advisor, I've got $1 million in a diverse portfolio that's growing fast. It's not just about having money for stocks; you need to know your stuff, stay determined, and be resilient.
@KellyClarkson122Ай бұрын
@@ChristopherAnthony-9 Mind if I ask you to recommend this particular coach you using their service?
@ChristopherAnthony-9Ай бұрын
@@KellyClarkson122 VICTORIA CARMEN SANTAELLA is the licensed advisor I use. Just search the name. You’d find necessary details to work with to set up an appointment.
@StephanieRebecca-0Ай бұрын
@@ChristopherAnthony-9 Thank you! I entered her full name into my browser, and her website came out on top. I filled her form and i hope she gets back to me soon.
@noahm3439 Жыл бұрын
One of the most clear and concise explanations I’ve found! Thanks for the info, you cleared up a lot of confusion for me.
@chainsingh53444 ай бұрын
I have wasted 4 hours on understanding this. But, you have done a simply phenomenal job explaining it (so much so that I am going ahead with Roth IRA). Simply brilliant!!
@flyingfoxes.Ай бұрын
God! Thank you!!!! Iʻve listened to Suze Orman a thousand times and still get confused. You are the best at explaining this. Very CLEAR and CONCISE. Thank you sir.
@ababaa81168 ай бұрын
This is the clearest explanation I have seen on KZfaq thank you
@FinancialFastLane8 ай бұрын
Thank you, glad it was helpful!
@b_tang4 ай бұрын
Simple, clear, accurate, straightforward
@manomay70296 күн бұрын
Very clearly and well explained. Thank you so much!
@Tinatut8 күн бұрын
Thank you so much! That was very clear and answered all my question in few minutes.
@mssoccerchick234 ай бұрын
Just to clarify: for example if I want to take out $3,000 from my Roth IRA (I have contributed way more than that) then I won’t be taxed or penalized regardless of my age and time I’ve had my Roth open?
@FinancialFastLane4 ай бұрын
That is absolutely correct!
@leeschloss48408 ай бұрын
Worth noting for future reference: "after 5 years" also means the "6th year". For example, if 2023 is year 1, 2028 is both "5 years after" and the "6th" year. (because 2023 is the 1st year). Sounds obvious but easy to forget and get tripped up on.
@user-up3gw7zw1oАй бұрын
For some Roth timetables, a contribution done in December for instance, will get credit all the way back to January 1st of that same year. So by that system of counting, the 5 year requirement could be done in about 49+ months? A contribution made later, by say April 10th for example, would not get credit for the deposit all the way back to January 1st of the Roth contribution year, as I understand. Thanks for your input!
@pierrecadet6 ай бұрын
Good information. I was going to open two Roth IRA. One from Fidelity and the other one from Vanguard.
@FinancialFastLane6 ай бұрын
Why two?
@user-up3gw7zw1oАй бұрын
@@FinancialFastLane I have 2 adult daughters and while I think I am still healthy to be around for a few more years, I have thought there might come a time when I could split my Roth IRA into 2 identical accounts with each daughter being a different beneficiary. Not sure in their early 40's that they understand the process to have one inherited Roth which needs to be split. Is this completely a waste of time? Thank you for the great presentation!
@FinancialFastLaneАй бұрын
@@user-up3gw7zw1o you simply designate 50% to one daughter and 50% to the other. Then at your death, they will each receive an inherited Roth IRA. It cannot be split and given to them prior to your death.
@viktorluciferovich70295 ай бұрын
Amazing video, everything is clear. Subscribed right away!
@DavidSmith-lp5tz Жыл бұрын
Can you do a more in depth discussion about Roth IRA conversations, age 59 1/2, 5 year rule? I’d like to take advantage of the down market and my low retirement income to convert a rollover IRA. Thanks
@MortezaNurcheshmeh5 ай бұрын
Thanks for the great explanation and correct info. Unfortunately, the internet is full of misinformation and that can be costly and confusing for people to believe in. watched several videos but none of them were very accurate and you explained key information in a short time.
@abdeon2203 Жыл бұрын
A very post. Information I’ve been eagerly searching for. Thank you sir.
@grudajeffrey6228 Жыл бұрын
Thanks for the summary. Can you describe the differences between Roth IRA and Roth 401k withdrawal rules.
@markhowland7486 Жыл бұрын
Very clearly answered my question! Thank you so much!
@royjones8012 Жыл бұрын
Concise & to the point. Taking out the confusion Of Roth withdrawal rules.
@erniesings68559 сағат бұрын
What if the roth dollars were rolled over from a roth 401k. are the contributions able to be withdrawn?
@Larry-Hi Жыл бұрын
Thank you for your timely info. Though your audio levels are a little low. Thanks.
@mattpecevich37492 ай бұрын
Best video on Roths on KZfaq!
@rjg701810 ай бұрын
Well done. Nice concise explanation.
@johnb1571 Жыл бұрын
really good video, but your audio is really low. had to max out the speakers and still hard to hear.
@xxpowwowbluexx11 ай бұрын
So, does the IRS consider the amount of your TOTAL contributions across all accounts as a single amount which, if you withdraw EARNINGS from one account but the withdrawal amount doesn’t exceed the total amount of your CONTRIBUTIONS across all accounts, you can still withdraw those EARNINGS tax and penalty free before 59 1/2-as if they were contributions? (Considering you’ve had one of the accounts for more than five years.)
@FinancialFastLane11 ай бұрын
The IRS does consider the TOTAL contributions across all Roth IRA accounts that you have. From the IRS stand point you have only one Roth IRA regardless of how many accounts you have have. The contributions come out first tax and penalty free but if you pull out all of the contributions and dip into the earnings then those will have a penalty prior to 59 1/2.
@xxpowwowbluexx11 ай бұрын
@@FinancialFastLane, so even if it’s technically the earnings in one account, it’s still considered contributions if you’ve contributed more than that amount in the other Roth IRA?
@FinancialFastLane11 ай бұрын
@@xxpowwowbluexx Yes, you only have one Roth IRA, even if you have 100 different Roth IRA accounts at 100 different custodians. The IRS says it is all one big Roth IRA.
@jeffbeamer98823 ай бұрын
THANK YOU! I finally understand!
@LennysHobby5 ай бұрын
I'm still a little unclear on conversions. If I converted after-tax 401k contributions into a Roth 401k and then later converted than Roth 401k into a Roth IRA, when does the clock start? At the first conversion to Roth, or at the conversion from 401k to IRA?
@nityalimbu Жыл бұрын
I love to watch your videos. Very informative. What savings do you recommend for kids future/ education? Is there any good savings plan for kids? I am looking for the savings plan where we can use that money for kids needs in future but not only for their education.
@FinancialFastLane Жыл бұрын
Contact our office and we can setup a time to talk www.martinsenwealth.com
@cliffdariff743 ай бұрын
How long to have a Roth in order to take gains that are non taxed distributions, that i started at 65 years ?
@michaelnitake25342 ай бұрын
If you convert 50% of your traditional IRA to a Roth And pay your taxes. At conversion , is there any tax ramifications when withdrawing from your Roth after 5 years and if you’re over 59.5 years of age? Or must you convert 100% of your traditional Ira to avoid taxation on Roth withdrawal?
@FinancialFastLane2 ай бұрын
You definitely do not need to convert the full IRA. Here is a video on the 5 year rules kzfaq.info/get/bejne/i9-qZ7qilpixlWQ.htmlsi=UsTsoz6bVYT8t0qC
@FabioSantos-cs2cf6 ай бұрын
I converted my 401k from a job I left and paid full taxes on it and got my Roth 401 from another job and transferred it all into my Roth IRA. Am I allowed to withdraw those conversions penalty free even though it has not been 5 years since the conversion and I am way under 59?
@FinancialFastLane6 ай бұрын
No you are not.
@dylanhuynh57014 ай бұрын
What does Conversion dollar mean? Does this mean the dollar that was converted from a Traditional IRA to a Roth IRA?
@FinancialFastLane4 ай бұрын
Correct.
@dlg5485 Жыл бұрын
Lane looks like a 1950s Madison Ave ad exec straight from the show Mad Men lol
@TheRawfishking27 күн бұрын
Thank You Sir.
@casers1112 күн бұрын
What about Roth IRA contributions that resulted from a rollover from a Roth 401k?
@FinancialFastLane12 күн бұрын
Rollovers are not considered contributions.
@HoldOnStillProcessing4 ай бұрын
I understand that earning withdrawls will always be taxed before 59.5 but will there always be a penalty? I've had the account for 10 years (37 years old now). If I pull out my earnings will those be subject to the 10% penalty?
@FinancialFastLane4 ай бұрын
Yes if you pull out the earnings before 59 1/2 but all contributions can come out tax and penalty free at any time.
@chuckmcleish11819 ай бұрын
To be crystal clear, once the 5 Yr clock is satisfied on the initial Roth conversion for someone over 59 1/2, are all Roth dollars (conversion amount and earnings) available from that same anniversary date as the of the initial conversion? For example, Initial conversion in 2015, subsequent conversions in 2016, 2017 etc. Are all the converted amounts and earnings from all the subsequent years available tax free in 2020, or as I have also heard that there is a new 5 year period required for each conversion?
@user-up3gw7zw1oАй бұрын
The day you reach 59.5 y/o, there are no more 5 year conversion wait rules. You are now considered qualified and everything in your Roth is available tax and penalty free......I think! I kept reading and learned that any earnings withdrawn even after 59.5, but prior to the 5 year wait period ending, the earnings for that one sub 5 year conversion would be taxed. Helps to keep reading!!!!!
@webcompanion4 ай бұрын
If the IRS knows my Roth IRA buckets, how can I know the buckets too? Seems like Fidelity hides this info from me.
@anthonypickles Жыл бұрын
What would dividend payments be classified as? I’m guessing earnings?
@FinancialFastLane Жыл бұрын
Yes
@VENFABIO3 ай бұрын
Thanks for a simple explanation. Im in my 60s and my etrade ira roth account gives me a option to click a button if i want to adjust a wash sale?? should i swith this on or not?
@FinancialFastLane3 ай бұрын
The wash sale has to do with capital gains taxes and only applies to non-qualified accounts. It would not apply to a Roth IRA.
@thetruth14462 ай бұрын
So I can put money in and let's say a emergency comes up in 1 year, I can pull that money out with 0 fees?
@FinancialFastLane2 ай бұрын
Yes, zero penalties and zero taxes.
@F8NcH8Ng10 ай бұрын
Fab video Lane, thanks much !! A clarifying question if I may, dealing with withdrawal of earnings. Noting that the order of withdrawals are contributions, conversions, and earnings. Example: let's say I'm 61. And I opened a contribution Roth IRA 11 years ago at age 50. And I then set up a Trad-to-Roth conversion IRA 3 years ago at age 58. According to what you said at minute 4:38, I can withdraw ALL of my Roth IRA funds, tax and penalty free (on the contribution, conversion, and earnings on both) because (a) I have met the 59 1/2 age rule (I'm 61), and (b) I've had "any" Roth IRA for 5 years (my contribution IRA = 11 years old). Regardless that my conversion IRA is only 3 years old. Is this correct? Cheers n crisps !!
@FinancialFastLane10 ай бұрын
Yes, you are correct! The only thing that still has a 5 year clock are any gains accumulated after a conversion. Every Roth conversion has a 5 year clock. All of the converted dollars can be accessed tax and penalty free but not the gains on those funds if they are invested and start to have new gains.
@F8NcH8Ng10 ай бұрын
@@FinancialFastLane Thanks for the reply, Lane. Just after I posted my question to you, I actually found the answer on the website of Cornell Law School Legal Information Institute. What I stated above in my example is correct, that no taxes or penalties are due on any part of the distribution, whether contribution or conversion or earnings. This is so complicated, I've spent untold hours on this off and on, across many days months years, ugh. About your answer, you are of course correct on a separate 5 year clock for each conversion, but it doesn't apply to my example, and I haven't looked into it further to see when it would apply. It would be good to see an example problem though. And as you say, gains on converted funds may be assessed tax and penalties, but only if they are non-qualified distributions of earnings. Qualified distributions of earnings however are not subject to tax and penalties. And per my example, my distribution is 100% qualified: I am over 59 1/2 years old, and my first Roth was set up more than 5 years ago. The first Roth set up can be either a contribution or conversion, whichever is set up first then gives you the 5 year rule start date that applies to all current and future Roths. So for my example, the earnings of any future Roth conversions will be also be qualified and not subject to taxes or penalties, even if I hold them less than 5 years. I'll post the 2 websites I found in another post here below, without web links, so it won't be removed. There are multiple excellent sample problems to illustrate the tax code. I should also say, I read on one of these sites that IRS Publication 590-B is an summary of the IRS tax code regarding all this, and is not the code itself. It was written by someone trying to summarize the code, as a guide / for general information purposes only, which may not be the exact legal tax code. That's the first time I ever read anything like that about any IRS publication, will note it for future use, ha. To be continued below (or above?)...
@FinancialFastLane10 ай бұрын
@@F8NcH8Ng Sorry, your conclusion is not quite complete.There is more than one 5 year clock! You have satisfied one of them but every Roth conversation has it’s own 5 year clock.
@F8NcH8Ng10 ай бұрын
@@FinancialFastLane OK, part 2, with the websites I found to explain all this. First up is an article titled "The Taxation of Roth IRA Distributions". This is by The FI Tax Guy, and I hope this can be found by doing a search for " fi tax guy the taxation of roth ira distributions " dated July 31, 2023. There is excellent info here with sample problems, and references to the Cornell Law School Legal Information Institute and their interpretation of the IRS tax code itself. Example problem #3 (about halfway down) is closest to my sample problem above. To find the Cornell site I mentioned, do a search for " cornell law school legal information institute 1.408A-6 " . The first article references the appropriate sections in the second. Thanks for your help !!
@F8NcH8Ng10 ай бұрын
@@FinancialFastLane Just one last thing to tie up this loose end for any future readers. Yes, every Roth conversion has its own 5 year clock, but this rule only applies to "unqualified distributions". Thus if the distributions are "qualified", then this "every Roth conversion 5 year clock" rule goes away. "Qualified distributions" = your age > 59 1/2, AND you have held your first Roth IRA (by contribution or conversion) for at least 5 years; and thus all current and future Roth distributions are tax and penalty free, whether they consist of contributions, conversions, or earnings. And the same goes for any new Roth IRAs that you set up in the future, by contribution or conversion; no tax and no penalty, you are home free forever. Or to phrase it another way, all these other confusing complicated beat-your-head-against-the-wall Roth distribution rules (5 years, taxes, penalties, contributions vs conversions vs earnings, withdrawal order of distributions) only apply to "unqualified distributions". Once you are "qualified", all these other rules go away. Also keep in mind that all your Roth IRAs are considered by the IRS to be just one single big pot, no matter how many separate Roth accounts you have, at how many institutions. Also, a Roth “contribution” is defined by the IRS as either (a) a regular contribution or (b) a conversion contribution. This specific clarification unfortunately wasn't included in IRS Publication 590-B (which is a summary/guide of the tax code but is NOT the tax code itself); but it's in the tax code, the Cornell Law School writing of the tax code (mentioned above), the "fi tax guy" article (mentioned above), and in the Kitces blog article "Understanding The Two 5 Year Rules For Roth IRA Contributions and Conversions". OK I'm worn out now, ha. Thanks Lane !!
@flyingfoxes.Ай бұрын
ps - Youʻve won a new subscriber!
@kbeautyhobbit6 ай бұрын
Great video. Does the IRS consider Roth IRA and Roth 401k as two different things? They don’t pool those into one big bucket, do they?
@FinancialFastLane6 ай бұрын
401k’s and IRA’s are in separate buckets.
@khatran11537 ай бұрын
Good day. I have to withdraw money from IRA to pay for my college. I know that withdrawals from IRAs before age 59½ are subject to a 10% penalty. But if I use the withdrawals to pay for qualified education expenses (in this case, my college tuition), I may not have to pay this penalty. I have one other brokerage account too, so do I have to exhaust that first (plus any money in my bank account) prior to withdrawing money from my IRA account without being penalized? Or can I just leave my brokerage account alone and withdraw the IRA without being penalized using the criteria mentioned above? Thank you.
@FinancialFastLane7 ай бұрын
You do not need to drain your other accounts. Here’s a video with the updated rules.
@hornbaker Жыл бұрын
That bit about conversions was a surprise… sure enough, there’s no waiting period on conversions after 59-1/2.
@FinancialFastLane Жыл бұрын
There is a 5 year clock on every conversion regarding gains. When over 59 1/2 100% of coversions are available but for any new gains you would have to wait 5 years for those to be tax free.
@hornbaker Жыл бұрын
@@FinancialFastLane tax would be paid on the full pre-tax contribution and its gains during the conversion, so it seems that only the post-conversion gains would be taxable (but not penalized) if the retiree dipped that far into the 3rd bucket and distributed earnings within the 5 years after conversion.
@FinancialFastLane Жыл бұрын
@@hornbaker That is correct as long as the person is over 59 1/2. If you are over 59 1/2 and you want tax free gains then you would have to wait to access the gains. If not then there the gains woud be taxed but no penalty because of age.
@JOhnnnnny6116 ай бұрын
lets say i roll over my roth 401k into a new roth IRA. This will be considered 'conversion" money. When do the taxes get paid for the gains + employer match contributions? At the time of rolling over the roth 401k into a roth ira, or at the time of withdrawling the conversion funds from the roth IRA?
@FinancialFastLane6 ай бұрын
The conversion would be added to your gross income for that year. You typically do not want to convert a full 401(k) all in one year. It’s much better to strategically do it in smaller chunks over several years.
@JOhnnnnny6116 ай бұрын
@@FinancialFastLane thank you
@JAhnKor9 ай бұрын
Thanks for the video, had a specific question regarding Roth 401k to Roth IRA rollovers: My Roth 401k consists of Contributions and Earnings. If I retired very early and rolled that Roth 401k into my Roth IRA, would the rolled over money still be considered Contributions and Earnings when it rolls over into the Roth IRA? If so, wouldn't that technically mean that I am able to withdraw contributions from my Roth 401k early without penalty, by first moving it over into a Roth IRA (where the rules allow me to withdraw Contributions at any time tax + penalty free)?
@FinancialFastLane9 ай бұрын
Roth conversions have a 5 year rule, so if you are under age 59 1/2 you would have a penalty if you withdrew converted funds before the 5 years.
@JAhnKor9 ай бұрын
@@FinancialFastLane So money that is rolled over from a Roth 401k to Roth IRA is considered a conversion, not contributions + earnings?
@irenechiu453310 ай бұрын
This is very helpful, but I do have questions: If I am over 59 1/2, and I have invested all my Roth funds into stocks, which made me some earnings over the years. So are you saying for the portion of earnings that is made over the last five years, I won't be able to withdraw without getting penalized? Thanks.
@FinancialFastLane10 ай бұрын
How long ago did you first establish your Roth IRA account? If it is more than 5 years ago AND you are over 59 1/2 then everything will be tax free. If you first opened your Roth less than 5 years ago, then you would need to wait until 5 year for the gains to be tax free. Hope that helps!
@generic_official7 ай бұрын
@@FinancialFastLane I established my first Roth IRA in 1998 and am over 59-1/2. I started converting some traditional IRAs when I turned 60. Does that matter, or am I tax, penalty, and 5-year-rule-free when it comes to withdrawing any or all of my Roth? Can I stop creating separate Roth accounts to keep track of conversion clocks? Is the tax on distributions when I convert more traditional IRAs the only thing left to worry about?
@FinancialFastLane7 ай бұрын
@@generic_official Yes! Since you have had a Roth IRA for 5 years and you are over 59 ½, all Roth IRA dollars are immediately available tax and penalty free. This includes earnings on any converted dollars, even if the conversion was done recently, and on all future conversions. At this point, there are NO 5-year clocks to ever worry about. Everything is and will forever be tax-free. (As an aside, there is no need to establish different Roth IRA accounts for each conversion. IRS Form 5498 essentially “time stamps” each conversion, so all dollars can be commingled.)
@gawtwins1 Жыл бұрын
If I have a roth ira for over 5 years but just started maxing out contribution this year, is it penalty free if I start withdrawal in two years at age 60 retired?
@JayDubCustoms5 ай бұрын
I'm getting close to 59 1/2... should I expect any push back from my financial advisor when I show up to withdrawal my IRA? Thanks!
@FinancialFastLane5 ай бұрын
I hope you are not planning to withdraw all of the funds in one year..? Roth funds are the most valuable because of the tax free growth. Maybe you are refering to a rollover and not a withdrawal?
@derekcho23123 ай бұрын
WELL DONE ....THANK you
@user-sp9ke7tq3y Жыл бұрын
If I have full access - a long established IRA and over 60, may I BOTH contribute and withdraw from the account freely like it is a typical bank account of sorts? No rules on regular withdrawals or deposits (besides the annual deposit limits) or timing apply?
@FinancialFastLane Жыл бұрын
Yes, but only if you have "earned income". If you are not working then you cannot contribute.
@jonjanskyАй бұрын
Well done, thank you.
@user-kx1lz8xz1m4 ай бұрын
So would I face taxes and/or fees if I withdraw earnings pre 59 1/2 and post 5-year old IRA account?
@FinancialFastLane4 ай бұрын
There are no penalties and no taxes when withdrawing contributions of a Roth IRA. So, depending on how much you have contributed that total amount could be withdrawal tax and penalty, free at any age.
@user-kx1lz8xz1m4 ай бұрын
@@FinancialFastLane are earnings always taxed and feed pre 59 1/2?
@danstevens646 ай бұрын
Hello sir, im trying to plan an early retirement. Im curious if my understanding of your video is correct. Let's say i contribute $300,000 into a roth ira over my life. Then i turn 49, i liquidate the assets within the roth but keep the money in the Roth account. I use the money to purchase high yielding dividend assets. Then, as those dividends are deposited into my brokerage account, i should be able to withdraw them up to the $300,000 limit right? Unless of course i hit age 59.5 before then. Am i missing something hear or is my thinking correct?
@wademarchetti54342 ай бұрын
I have the same question
@chin45382 ай бұрын
So clear , thanks
@CelticsWin711 ай бұрын
I'm 31 and have had my Roth IRA for 7 years. If I withdrew earnings would they be taxed AND penalized even though I've had the account for over 5 years? I'm not going to withdraw anything, I'm just curious how it exactly works.
@FinancialFastLane11 ай бұрын
Yes, at your age, the earnings would be taxed and penalized.
@OddBall195810 ай бұрын
Okay! So I'm 65 as of June this year. I have only a Roth account that I've had for twelve years. I have no conversions and have been contributing the max. every year. These contributions have bought stocks with high yeilds (TD Ameritrade) and collecting dividends that are reinvested. If I stop reinvesting the dividends turn in to cash in my Roth account. Am I aloud to just take a distribution of that cash every month or do I have to sell the stocks that the contributions bought in the first place? My goal is/was to retire and live off of the dividends produced by the stocks. Is that even possible? Thanks
@FinancialFastLane10 ай бұрын
Yea it is possible. I see no problem with doing that.
@butopiatoo11 ай бұрын
Is this the same for a ROTH 403B? If I have one and I have had another ROTH for more than 5 years, no problem withdrawing contributions from day one (yes and over 59.5 too) Obviously, the point is to put this money in and NOT take it out for a long time, but incase i needed to, I could. Thanks.
@FinancialFastLane11 ай бұрын
Generally speaking yes, but employer sponsored plans can have some unique rules set by the employer. Typically you can also do an in-service rollover to a Roth IRA when you’re over 59 1/2.
@butopiatoo11 ай бұрын
@@FinancialFastLane Thank you for the clarification.
@jillschmieding9 ай бұрын
If I did a Roth 401k rollover into a Roth IRA in 2023 can I pull out this money penalty free? I’m looking to buy a second home with the money.
@FinancialFastLane9 ай бұрын
If you are over age 59 1/2 then yes. Here is a video with the exceptions kzfaq.info/get/bejne/eK5hZ5Omv7bciKM.html
@user-up3gw7zw1oАй бұрын
While "self directed Roth accounts" are beyond me, there is a way to buy real estate property and keep it in a Roth account. There are restrictions, like not living in it or allowing family to live in it for instance, but there are self directed Roth accounts out there. For me they're kinda complicated and the value of such an account holding would require an appraisal(annually???) Just something to maybe look into.
@jpgsf19783 ай бұрын
Nice work !
@durtydeedsREI4 ай бұрын
Great information.
@peternguyen72058 ай бұрын
What happens if I contribute $3000 and I lose $1000 of it. But then I make $1000 of gains back totaling my cash back to $3000. Would I be able to still pull $3000 without tax penalty or is that $1000 considered taxable gain?
@FinancialFastLane8 ай бұрын
Gains are tax free, however there could be some exceptions if one of the 5 year rules applies to you.
@user-up3gw7zw1oАй бұрын
while it never happened to me, I pondered the same scenario. Hopefully you will have a long lifetime of contributions and/or conversions and not need to tap your retirement accounts. Good reason to think about having a separate emergency fund!
@tuhinmandal9530 Жыл бұрын
Can I contribute towards previous years in ROTH IRA account? Considering I did not invest any at that point of time.
@FinancialFastLane Жыл бұрын
You can contiribute for a previous year up until tax day but nothing beyong that.
@kemia25210 ай бұрын
Hi there. If I rolled a 401k to a Roth IRA is the whole amount considered a contribution or conversion? I paid takes on the rollover. Think it's a conversion, but just want to confirm. Thanks.
@FinancialFastLane10 ай бұрын
If you rolled a pre-tax 401k into an after tax Roth IRA that would be called an inflight Roth conversion. Usually that is not recommended as you are probably paying too much in taxes (depending upon the size of your 401k).
@kemia25210 ай бұрын
Thanks for the reply! Conversion it is. It went from a 401k to Traditional IRA to Roth IRA so taxes were what they needed to be. @@FinancialFastLane
@goodnewsfromgod-bybob5710 Жыл бұрын
Did NOT know the 5 year AND 59.5 rule. So recent earnings on my Roth at 70 years old are taxable??
@FinancialFastLane Жыл бұрын
The earnings are taxable only if you have withdrawan all of your contribution dollars and all of your coverted dollars and you also withdraw the earnings on converted dollars before the 5 year time frame was met. It's not a very likely scenario. It would mean that your Roth IRA is almost depleated.
@BrendaAbraham Жыл бұрын
Audio was very low, struggled to hear you with my volume all the way up
@FinancialFastLane Жыл бұрын
Sorry about that. I'm not sure what happened but will look into it. Thank you!
@mminster7005 Жыл бұрын
How about a video on SSDI regulations for people under age 65?
@johnvu7151 Жыл бұрын
I have a senarios if anyone can help me. I opened ROTH IRA in 2021 contributed 6k, in 2022 contributied 6k, and in 2023, so far, i have contributed $4,250. My account is showing gain of $995 from earning (on top of my contributions). This year i’m buying a house. Can i withdraw $16,250 that i had contributed without tax and penalty to put downpayment on my first house? I would appreciate if somoene could answer my question. Thank you.
@tsengelmaanavaandorj27758 ай бұрын
I’ve the same question. My understanding is our contribution is always penalty free, no matter when we can withdraw but I want to make sure that’s accurate.
@ethanbell8639 Жыл бұрын
Great video
@gerardopena53654 ай бұрын
God bless you 💪🏼
@robertdebuck5224 Жыл бұрын
At what age do you have to cease contributing to your ROTH IRA?
@FinancialFastLane Жыл бұрын
When you no longer have "earned income". As long as you are working you can can contribute. There are no age limits.
@informalfallacies9 ай бұрын
Bravo 🎉
@figy12883 ай бұрын
Thank you
@JesusIsComingBackS00n4 ай бұрын
Wish I had watched this one sooner ;(
@roberthutchison841611 ай бұрын
I have a roth 401K would it have same rules or different?
@FinancialFastLane11 ай бұрын
The withdrawal order rules would be the same but there are of course some other differences. Most people rollover their Roth 401k into a Roth IRA which is something you may want to consider.
@milliehummel Жыл бұрын
I’m 63 yrs old unemployed and need to touch my Ira. What should I do to help with home improvement. ?
@milliehummel Жыл бұрын
I only want to do a one time withdrawal at age 63. I’m retiring in twoyrs. What should I do?
@FinancialFastLane Жыл бұрын
We can’t give specific advice in the comments. You should consult a qualified financial advisor.
@cliffordmeberg1443 Жыл бұрын
So I can take all of my money from my Roth IRA tax free ? What if I am collecting my SS at the same time?
@FinancialFastLane Жыл бұрын
Yes, withdrawals from Roth accounts are tax free and they have no negative impact on Social Security.
@cliffordmeberg1443 Жыл бұрын
Thank you very much for the reply and advice
@laylasgranma Жыл бұрын
Thanks
@kpopbutlofi2 ай бұрын
It’s way too complicated, hello canada tfsa, thank you tho