Retire Confidently Podcast

Rules of the Roth IRA

April 03, 2023 Telton W. Hall
Retire Confidently Podcast
Rules of the Roth IRA
Show Notes
  1. Eligibility: You can contribute to a Roth IRA if you have earned income and your modified adjusted gross income (MAGI) is within the limits set by the IRS. For 2022, the contribution limit is $6,000 for those under 50, and $7,000 for those 50 or older.
  2. Tax Treatment: Contributions to a Roth IRA are made with after-tax dollars, meaning you don't get an immediate tax deduction. However, qualified withdrawals are tax-free.
  3. Withdrawals: You can withdraw contributions at any time without penalty, but earnings can only be withdrawn tax-free if you're 59 1/2 or older, and the account has been open for at least five years. There are also exceptions for certain life events, such as disability or first-time home purchase.
  4. Conversion: You can convert a traditional IRA or other eligible retirement plan to a Roth IRA, but you'll have to pay taxes on the amount converted.

It's important to note that Roth IRA rules and limits can change from year to year, so it's important to stay up to date with the latest information from the IRS - If you have any questions please make an appointment with me

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Telton W Hall, CFP® is a husband, father, retirement planning expert, small-town-boy at heart, nationally published author, sought-after speaker, former college basketball player, founder/owner/team member of Utah based Advanced Financial Planning LLC, hiking enthusiast, Jesus follower, business leader, team builder, and to the core Telton is an educator.