How to Build Wealth with a Roth IRA in 2025

[@FIREPsyChat]

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[@johnstouchpad6437]

Note about spousal IRAs, when you go to open an account, there is NOT an account type called "spousal."

[@jakinchapman9864]

This is so well explained. Exactly what I was looking for. Thank you

[@kwfown]

Very comprehensive, well done 👍

[@CC-kl4nh]

Fantastic video!

[@jackkulero2929]

Thank you so much! This is very informative.

[@g9625]

Good info Mr psy!

[@johnstouchpad6437]

Min 9:00 MFJ were one person is not covered , those MAGI are not often covered in other video's.

[@johnstouchpad6437]

There is also a spousal traditional IRA, which wasn't mentioned, as well as the spousal roth IRA.

[@laxmanpaladugu9899]

Very good info and summary. Quick Q.. how can we calculate MAGI num?

[@Dice-Evals]

Thanks Psy!

[@julhe8743]

Wow one of the best videos about Roth and traditional Ira thank you. My question is I didn’t qualify to make a Roth contribution because of my income, but I did. Now I have to remove pay 10% and taxes in the gains. I COULD DO BACKDOOR CONTRIBUTION AND ROTH CONTRIBUTION IN THE SAME YEAR ?? ( if my income allows )

[@johnstouchpad6437]

Looking for and old retirement account or old bank accounts, Instead of waiting for a gov. Database to be created. For every state you lived in goto that states department of revenue website, they should have a section for finding lost money. Note it can take months to get the money.

[@sjuni8137]

Started a Roth and deposited $8000 this month, Dec 11, 2024. I don't know if I can afford the catch-up for years moving forward. I would like to know if I can contribute between $7000- $8000. I am 59 years old.

[@keithwong7268]

Hi , so should i roll over to roth IRA from my tsp at 59 1/2 ? Cause i plan to retire at 62 for sure ! Thx !

[@jzbreezio]

What kind of "contribution catch-up" does one have to make if youre a 45yo? Max out $7k every year for example, say.... 20yrs?

[@Unplugged704]

Is there a $7,000 limit to Roth 401k like the Roth IRA?

[@nickt.7305]

No, Roth 401k limits are the same as traditional 401k. I just discovered that my employer offers a Roth 401k, so I intend to start contributing more to it than the traditional 401k.

[@Unplugged704]

@@nickt.7305 Yeah.. me too. I made the change already on mine. Now I'll have both traditional and Roth 401k accounts. I also learned the company match will be deposited to the traditional account. Debating converting but man.. that's a lot of taxes I'll have to pay. It is recommended to pay with $$ that's outside of the 401k so to let that money growth.

[@EBMB21]

Do you know any regulations pertaining to QDRO? I will be awarded by a court to split a 401k from a former spouse’s account. Can I roll over a large sum from the 401k acct to my Roth IRA account without penalty or taxation? Or, do I need an IRA account first for that sum to go to? I am currently 66 yo. My only income is a spousal support plus a small amount from my SS benefit. Thanks

[@KevenJoslin]

Retired at 55 rule of 55, my only income is from my 401k. Wife is currently working am I allowed to continue contribute to my Roth Ira

[@patricksimon8943]

Just got here!!

[@PrincessAlexisfuntime]

Can my spouse contribute to a Roth IRA if she has no income and we file married filing jointly? I never open one because I read somewhere that I can’t do that if my spouse has no income.

[@Lillysammy126]

Of course. There is no minimum income requirement, only a maximum income where they are not eligible for the Roth IRA (married filing joint modified adjusted income is less than $230k or the reduced contribution for incomes more than $230k but less than $240k).

[@Lillysammy126]

If the joint adjusted gross income is less than $76,500, look into the savors credit for tax credit of 10%-50% of retirement contribution. FYI Robinhood matches 1% of contribution if you leave the money there for 5 years. Referral is in my profile if you are interested. As far as I know, that's the only one matching every year.

[@Lillysammy126]

😂 my comment got deleted, no referrals then. Anyways, if your adjusted joint gross income is less than $76,500, look up savors credit for 10%-50% contribution tax credit on retirement investment.

[@javiermendoza8056]

Does 401K - ROTH older than 5 years when rolled to a ROTH IRA is it still subject to the 5 year rule?

[@KA-NV]

As my understanding yes. You will be subject to the 5 year rule.

[@f430ferrari5]

This is all great advice but people should not lose focus on tax deferred or traditional 401k or IRA. The 2025 standard deduction is 30k. The current 22% tax rate starts on income $96,950 and over. If one is in the 22% bracket then the whole point in deferment is to reduce income for the 22% and plan to withdraw monies from 401k/IRA after 59.5 and be in the 12% bracket. Or just only withdraw up to the standard deduction and one would have paid no tax at all. Best to start Roth IRA early as a child. There is no minimum age. Put all Roth only if in the current 12% bracket. Have a combo of both when getting closer to retirement.

[@goodkarma1903]

I always make my IRA contribution first month of the yr but this yr I took capital gains which makes my income threshold over the income limit . I didn’t know I will reach the income threshold limit. Now I’m stressed out, thinking of offset some of my losses from my portfolio to keep my income under $230,000 so I dont have to withdraw my contributions plus pay a 6%. If there’s a better strategy plz share

[@KA-NV]

It happened to me once. You just need to withdraw the direct contributions within a year. I will not get the 6% penalty. Consult with a CPA to be sure, because I am not one. Just telling about my experience.

[@toulor3403]

Is contributing to your 401k throughout the year only to convert that 401k to to roth in December, a good idea? What if your 401k gained in that year? What if your 401k loss value in said year? Or are we not allowed to discuss this where the irs can see it?

[@Jericho9696]

Are you asking to convert with both contributions and earnings at the end of the year? If so, why do that when you can just do Roth 401K and let it grow tax free? You’ll end up paying more taxes if you do what you said

[@lalew2]

how do people forget about their 401K?

[@johnstouchpad6437]

How do people forget about old bank accounts?

[@punisher6659]

👍

[@paxiong6366]

Way toooo confusing!!

[@Jericho9696]

What part?

[@paxiong6366]

@Jericho9696 the many steps. Must have traditional IRA. THEN open Roth IRA, then all or none, can I have a traditional and back door at same time? , then taxed and not taxed, then I must keep track. Etc.

[@julhe8743]

@@paxiong6366try to watch few times. He explains very clearly better than any other channels