Roth IRA Explained | A simple explanation of the Roth IRA.

You can stop looking! Here is a quick and simple explanation of the Roth IRA and how it works.

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[Arizona_lilly]

My dad did this he’s retired now he has few one of them he cashed out he gets 1, 800 month for next 3 years from this he started in 90s and he gets his social security too my dad is 62 and gets about 4K in funds a month we have our home paid cars paid lane extra homes he bearly speaks English I am so proud of him

[NicholasBall]

Recently retired and unsure if my 401(k) and IRA will provide a stable future. i need an approach that will align with my risk tolerance and financial goals, i set aside $1m to achieve this. Do you suggest i get into stocks or buy a rental property?

[koolaidshower]

The mitochondria is the powerhouse of the cell

[TheJackCain-]

This is my fifth year after retirement. I’e been following the 4% rule thing I saw on a youTube channel, but this isn’t really how hard I expected things to be. After I cashed out a lump sum, I still have about $760k left, but at this rate, and with how the market is (we were putting money away in an index fund), I’m starting to get really worried.

[ChristopherAbelman]

I’m 49 and I have about ($190k) liquid in savings which I plan to put towards becoming a homeowner, but based on the current high prices on real estate, do you suggest I hold from buying and look at stocks instead?

[hayleymorgenstern]

Him: Alright, did I cover everything?

Me: The part where you explain what a Roth IRA is.

[Nome]

Dude, if you mean $5500 per year, say "per year". Just saying 5500 made this video so confusing.

[PGIFilms]

NOTE-1: Excess contributions to a Roth IRA can trigger excise taxes, but this can be avoided by either (A) withdrawing those contributions by the tax filing deadline, including extensions or (B) applying the excess as a contribution to the following year. The current limit as of 2021 is now $6000/year for a single individual, so if you were to contribute $8000 to a Roth IRA in 2021 by accident you could withdraw $2000 before the 15APR2022 deadline for filing the 2021 taxes or apply the $2000 as contributions towards $6000 limit of the 2022 tax year. NOTE-2: Distributions from a Roth IRA are only tax-free if they have vested for at least 5 years and you are at least 59 1/2 (if not you must be disabled, or it is distributed to a beneficiary/trust upon your death, or the amount is no greater than $10k and used to buy your first home). Early distributions are also subject to the additional 10% tax penalty for early withdrawals unless it qualifies for one of the exceptions, but YOU MUST COORDINATE WITH THE FINANCIAL INSTITUTION managing the Roth IRA in these matters so that they put Code-2 in Box#7 of the 1099-R, otherwise the distribution will have a Code-1 in Box#7 and subject to the additional 10% tax. See IRS Pub 590-A and 590-B

[mavissmith]

This was a easy listen (great presentation style), but to me, missed the main point of the Roth—the tax advantages (ability to withdraw with no taxes on the growth; and no taxes on the contributions because taxes were already paid before going in). So this could be years or decades of growth that can be withdrawn all tax free—a very important distinction!

Still, good video.

[phackdaphish]

Omg. Using the house example made everything so much more sense!!! Thank you!

[johnny]

Mmmm. I guess it explained what a ROTH IRA is. An account, like an “empty house” for retirement or long term purchase goals. I got that part. I’m still not sure the “how to” contribute, or how it works in my favor adding more value as I contribute to it... gotta research more. Thanks tho.

[denisegar]

If we are taught that $4000 invested monthly into the S&P 500 index (8% annual ROI) will grow to $2, 350, 000 after 20 years, $3, 800, 000 over 25 years and $5, 600, 000 after 30 years then we will have a lot less 20 year old making $35k and running to the Mercedes dealership to blow the money

[CapAnson]

I wish I had paid attention to how beneficial a Roth was when I was 18 and put in the max every year. I'd basically be set for retirement. Oh well better late than never.

[boon]

"Why don't you explain this to me like I'm 5"
- MS

[joea]

All the information I've been looking for, thanks man! Every time I look for a specific answer I get water boarded with puffed up information that never answers my question

[arkfinz]

This was a very helpful and condensed video that explained a lot. Thank you.

[peacockjones]

Wow! Thank you for explaining the Roth account in simply terms that a 5 year old could understand. Don't change the simplicity.

[jhawk]

Great video. I like how you were talking to me like a normal conversation.

[elonwarren]

Thanks for the explanation! So when you open a ROTH IRA, you put money in it, but how much do you have to start out? How many times can you contribute in a year? When you put money in a IRA does it grow each year?

[chosen.]

Best explanation of Roth IRA. I was very confused before watching this video.