Roth IRA Basics


Transcript of Roth IRAs
Qualified Distributions…
What Is A Roth IRA?
A special retirement account where you pay taxes on money going into your account and then all future withdrawals are tax fee.
Who Needs a Retirement Account?
Everyone. Americans are living longer than ever and social security may not be enough.
Tax deferred growth
Flexible investing choices
Low Cost
Qualified distributions allowed
Roth IRA Income Limits
Education Expenses
Health insurance
First home purchase
Contributed amounts
Investment Choices
Mutual Funds
Index Funds
Real Estate
Roth IRAs not for the 1%
In 2016, individual tax filers must earn less than $117,000 and married filers must earn less than $184,000. Some contributions allowed above this level, but then gradually phased out to $0.
Common Question
Can I invest in a 401k and a Roth IRA?
Yes. Your tax deferred retirement plan at work is a natural compliment to your Roth IRA. One defers taxes until retirement and one saves you taxes at retirement.

Roth IRAs also do double duty as college savings plans, which add flexibility for financial planning.
Roth IRA Limits
Unchanged from 2015 to 2016
$5,500 per individual
and $6,500 per individuals over 50 years of age
Roth IRA Basics
Benefits of a Roth


  1. 2:05 “Roth[has] tax deferred growth.” No Roth has tax free growth. You’ve confused it with a traditional IRA which has tax deferred growth.

    2:25 re Index fund “pay capital gains at the end of that investment.” No, you have to pay taxes every year it spits out CG.

    Roth IRA can also serve double duty as an emergency fund.


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