5 Surprising Facts about a ROTH IRA that No One Talks About

STUFF I RECOMMEND!*
Personal Finance

Saving Money & Grabbing Deals

Chapters of Today's ROTH IRA Explained Video:
0:00 - Introduction
0:19 - Roth IRA Explained: Fact 1
2:27 - Roth IRA Explained: Fact 2
4:08 - Roth IRA Explained: Fact 3
5:11 - Roth IRA Explained: Fact 4
7:31 - Roth IRA Explained: Fact 5
9:30 - Conclusion and Next Steps

#rothira #financialeducation #financialindependence

🌟 Key Insights:

🏦 Fact #1: Early Withdrawals
Did you know you can withdraw your contributions at any time without penalties or taxes, even before age 59.5?

📈 Fact #2: No Required Minimum Distributions (RMDs)
Unlike traditional IRAs, Roth IRAs have no RMDs, allowing your investments to grow tax-free for as long as you like.

🧬 Fact #3: Beneficiary Benefits
Your beneficiaries can inherit your Roth IRA and enjoy tax-free distributions, making it a powerful tool for generational wealth transfer.

🏡 Fact #4: Withdrawals for Special Circumstances
You can withdraw both contributions and earnings for first-time home purchases, disabilities, and qualified education expenses without penalties.

👶 Fact #5: Roth IRAs for Children
You can open a Roth IRA for your children if they have earned income, setting them up for a financially secure future.

💡 Discussion Points:

🤔 How can early withdrawals from a Roth IRA benefit your financial planning?
📚 What are the tax advantages of having no RMDs with a Roth IRA?
💸 How can Roth IRAs be used for unique financial situations like buying a home or funding education?
👶 Why setting up a Roth IRA for your children can be a smart move for their future.

🌟 Join me as we explore these lesser-known benefits of Roth IRAs and how you can take advantage of them.

📢 If you found this video insightful, share it with others, and don’t forget to subscribe for more tips on personal finance and retirement planning. Ready to maximize your Roth IRA benefits? Check out our next video for more strategies on building wealth through smart investments. See you there!

Audio Acknowledgements:

Learn all the hidden secrets of a Roth IRA in this video! Discover how you can withdraw your contributions early without penalties, the benefits of no required minimum distributions, and how you can pass down tax-free growth to your beneficiaries. Don't miss out on these valuable tips - subscribe now!

*Disclaimer: Bob is not a financial advisor. Please contact a professional financial advisor prior to making any decisions. Some of the links and other products that appear on this video are from companies in which Bob Sharpe earns an affiliate commission or referral bonus. Bob Sharpe is part of an affiliate network and receives compensation for sending traffic to partner sites. The content in this video is accurate as of the posting date. Some of the offers mentioned may no longer be available.

[BobSharpe]

YO!!! What other videos do you want next on the channel? Comment and let me know!

[geronimo]

Quite possibly your best video. Thanks!

[pdxmusl]

Would love a video about back door roths.

[TheCookingDojo]

So I wanted to tell you that my aunt and uncle were talking about social security so I showed them your video on it. They said they not only loved it but ended up watching a bunch of your other videos. They also said they may have other questions in the future

[PaulGosselinsr]

Ooops, Bob. You can only put “earned income” in a Roth. Social security or pension are not earned income. It must be w-2 money to invest in a Roth.

[WhitneyRoss-djrf]

I don't know if this is a joke or not but if it is true, then that's the American dream come true for him. Same here. I am 53 and retired at 50. One thing I did do to retire early was to get out of the 401K and IRA programs. Bought rental real estate and I am now a Limited Partner in about 3500+ units. I do not work.

[dfgriggs]

One could get the impression (from 4:00 point) that retirees can contribute pension or social security income to their roth ira, and that is not allowed. Also, most inherited roth beneficiaries must empty it within 10 years.

[appleztooranges]

Can you do a video on how to withdrawal from a Roth Ira? Do you have to sell your stocks first?

[appleztooranges]

I like the Roth IRA knowing I can withdrawal anytime my contributions from it. It’s my savings that I should not touch! Tax free and penalty free

[openfor]

Great video! QUESTION: What if you have a Roth IRA that is 3 years old, over 60 years old, can the Contributions be withdrawn without penalties?

[soulseeker]

I use my taxable account growing for future loan collateral. So I don't have to withdraw anything. Also hopefully build it good enough that it pays for any loan against it.

[ernestotheawesomeone]

Question regarding contributions. If I contribute, but then withdraw is for whatever reason, would my contribute limit go back to how it was? For example, in 2024, the limit is $7k. I initially deposited $1k but then withdrew it. Would my limit go back to $7k, or will it stay at $6k.

[mannixpro]

In a roth IRA, all unqualified or income from dividends are still taxed after 59.5 yrs old and met the 5 yr rule when withdrawing some out?

[datbio]

It is not easy to be able to add money to roth ira, why the hell would you like to withdraw?

[cliffdariff]

I'm 66.5.. started my 401k at 64 yrs old. I have to wait until 69. But that's okay, its building income quickly and will be extra cash in my 70s

[ZMMYOB]

Inherited Roth IRAs need to be withdrawn in 10 years-not the lifetime of a beneficiary.

[winniethepoohandeeyore]

I have 1k I can invest right now..Gimme suggestions

[GUNNERakaKelt]

IIRC (and I maybe not be), about the passing on your roth to family, once they get the roth, they DO have R.M.D.'s. It's been awhile since I read up on it, but I believe that's how it works. Uncle Sam has alway's got to get his cut. How else would he have money to p!ss away.

[datbio]

of course no one talks about this, because they are meaningless. everyone knows that there is no RMD for roth. and when you pass your roth to your child, they don't get another life time to earn but only up to 10 years to withdraw.

[johnl]

I have a Roth IRA with Fidelity and it will let you know how much you can contribute in your account in the current year. It change each year.