What do you know about Roth IRA’s? Many investors don’t understand traditional or Roth IRA’s. What they can offer you? Tom and Brendan will explain that and more in this educational video. They start by describing traditional IRA’s, before building into their eventual topic of Roth IRA’s. The end goal of both Roth and traditional IRA’s is the same, to help solidify your future through sound financial planning. There are some differences between the two that you need to understand though.
Traditional IRA’s worked as a great option for investors through most of the 1980’s. Then the threshold to be able to make a deductible contribution was lowered, making them less favorable. Roth IRA’s didn’t come around until 1997, but the best part about them is that anybody is able to contribute. Tom and Brendan discuss the Income Contributions Levels in this video. Depending on your status (single filer or joint filer), you might qualify for the ability to make full contributions to your IRA or partial contributions. Even if you make more than the Income Contributions Levels for 2013, you can still invest your money in a Roth IRA. Back-door Roth IRA’s are a very real option for investors. Tom goes over how these can be done in the video. Investors normally have questions about the distributions from Roth IRA’s, and whether they are taxable. Tom covers that in this week’s video as well.