5 Biggest Roth IRA Mistakes

The Roth IRA and the use of tax diversification can provide a tremendous lift to your financial success and retirement. To use the Roth IRA effectively, we will help you avoid the five biggest mistakes people make with their Roth IRA in this episode of Wise Money.

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Kevin Korhorn, CFP® offers securities through Silver Oak Securities, Inc., Member FINRA/SIPC. Kevin offers advisory services through KFG Wealth Management, LLC dba Korhorn Financial Group. KFG Wealth Management, LLC dba Korhorn Financial Group and Silver Oak Securities, Inc. are not affiliated. Mike Bernard, CFP® and Joshua Gregory, CFP® offer advisory services through KFG Wealth Management, LLC dba Korhorn Financial Group. This information is for general financial education and is not intended to provide specific investment advice or recommendations. All investing and investment strategies involve risk, including the potential loss of principal. Asset allocation & diversification do not ensure a profit or prevent a loss in a declining market. Past performance is not a guarantee of future results.

Intro: (0:00)
Segment 1: (0:11)
Break 1: (10:28)
Segment 2: (14:08)
Break 2: (24:22)
Segment 3: (26:05)
Break 3: (36:22)
Segment 4 (37:00)
Outro: (47:13)

[jeffb.]

The Roth tool is great. WIsh I would have started a bit earlier. We max the 401K Roth at 30K a year, plus both contribute to Roth IRAs. That's 45K a year that should never be taxed again.

[onlywenilaugh]

Sorry, too much chit chat for me on this channel, 15 minutes in and commercial and only 1 of the 5. Great for those who want to hang around listening to everything for 47 minutes, but this could have been a 20-30 minute video.

[Capt.Tony]

First financial show that has some personality and isn’t a snoozer.

[tz]

Hi, thank you for this video. I've already done the IRA conversions to Roth for my wife and I. Yes it's painful but worth it. I have a question for you. We are in our late 40's, early 50's. Can you take money from your 401K, pay taxes and put it into (convert/transfer) to your Roth 401K....like you can do with your traditional IRA's? I have a 401K and a couple years ago, opened a Roth 401K. Hope the question makes sense. Thanks

[virginiasanmiguel]

TY guys❤❤❤ will ur firm provide advice for a fee, on what we should do with our finances??

[bobbycrowe]

So for someone like myself who makes 350K per year, 52 years old, have 1.3 million in 403B/IRA accounts (contribute the max amount every year), high risk return strategy, plan on working at least another 10 yrs, have 170K in a brokerage account also in high risk return strategy (adding approximately 36K per year), 100k in a money market account, expecting $4500 in social security per month at 65 for both of us, and will have a pension that pays $3000 per month, should I start contributing my annual 403B money to the Roth 403B plan at my work and build that account for the next ten years? When my financial advisor (Raymond James) did future projections, at some point because of my RMDs, it had me projected to pay upwards of $140, 000 in TAXES some years! I'm concerned that I don't have more assets in the "tax free bucket".

[missouri]

Lots of good information that was kinda random however there was no discussion on how you do a Roth conversion in other words how are the tax brackets work and how you have to figure out how to be under the next higher up tax bracket
I think your audience would be very well served with that discussion and also when do you pay the tax on a Roth conversion
If he did the Roth conversion in February do you just wait until you do the taxes next year
There seems to be lots of confusion on that very question from my experience
Anyway I love you show and I appreciate you all thank you

[RC]

hmmm...I thought that every Roth Conversion had to have it's own 5 year clock no matter what the age of the account opener was. So you are saying that EACH Roth Conversion account opened AFTER age 59 1/2 doesn't have to be open for 5 years?

[MichaelCercone-qk]

Does your clients get your help and the tax help in your fees or when you deal with the taxes, the client also has to pay your tax person also?

[BG-gitp]

What about going in the back door to contribute to a Roth if one makes too much money??

[rolfholt]

Here's a trick to pull money out of an IRA tax free. Take the money out & fund your HSA. The HSA contributions are above the line tax deductions (100 % tax free). This only works if you have high deductible health insurance plan. Also, limited to HSA contribution limits. 🥳

[ironwill]

So do I pay taxes on my deposits to the roth ira even though the cash is from job earning ..?

[bigtoeknee]

If I open and fund my Roth at age 50 snd then do Roth conversions at age 60 do I still need to wait the 5 years (age 60) before i can acess any conversion money.

[paulj]

Anyone can contribute after tax money to traditional IRA then convert to Roth. No income limits or even if you do 401k. It's the backdoor Roth. Just 2 steps.

[brettm]

A whole life insurance policy could give people extra money that could help them. Bank infinite is ok for cash to borrow?

[Chiroman]

Great info for the average Person. I'm retired at 71 YO. I have a 401K from my previous Employer. I want to Rollover that 401K to a already Established IRA at Schwab. I have not rolled over any IRA for the past 14 months. Can I do it since it is past the restriction of 12 calender months?; With this move I can now self manage the funds from the 401 K . At my age, I will remain Cautious - probably a Ladder of Tresury securities, maybe Silver or Gold, and possibly consider some didvidend stocks. Next Question for 2024. I will need to take RMDs by October 2024 when I hit 73. When I take the funds out to meet the requirements, acn I put that in a New ROTH IRA, so the income that investment generates is Tax Free?

[kjones]

If I make less than the income limit for a Roth contribution ($138K - single), can I contribute to a Roth and do a backdoor Roth (contribute after tax to trad. IRA and convert to Roth)? I did a backdoor Roth in 2023 and I want to make a Roth contribution for 2023 before Apr. 15th, but my tax person said I can't do that.

[AlexShantyOldLawModel]

Number 6. Not using NICER Fiduciary Security CFPs to defend it.

[frankt]

What happens if you contribute to a Roth and your income exceeds the allowable amount?

[Ellis]

What about a Roth within a 457B plan? Does age 591/2 still apply?