Roth IRA Explained for 2024 (Tax-Free Retirement Account)

[@OptimizedPortfolio]

Do you have a Roth IRA?

[@TonyCox1351]

Just started on this year, I have a 401K and Roth through my employee, but plan on using the IRA as a tax-free wealth transfer to my children when I’m older

[@OptimizedPortfolio]

@@TonyCox1351 Awesome! Thanks for sharing!

[@erdrick22]

You answered one of my questions, that you cannot contribute with securities, thanks.

[@OptimizedPortfolio]

Awesome!

[@schonsense]

Absolutely have a roth ira. In fact, after hitting a nice milestone in my 401k I swapped all my contributions from trad to roth there also. At this point, I'd rather pay current taxes than expose myself to future tax risk with RMDs.

[@OptimizedPortfolio]

Awesome!

[@etielrincon]

Thank you for the video. If married filing jointly, can each person have their own Roth IRA with a 7000 limit each?

[@OptimizedPortfolio]

Thanks for watching! And yes.

[@TJ-Stackin]

The HSA and Roth IRA are the best investment vehicles for the avg joe

[@OptimizedPortfolio]

😎

[@TJ-Stackin]

@stevexracer4309 Explain yourself.

[@fadisalem2710]

I have a Roth IRA in Firsttrade, Fidelity, Charles Schwab and Vanguard. Not sure if I should just keep them as is or to combine them into one account.

[@OptimizedPortfolio]

Sounds like a headache to manage.

[@Ryan-iq2zd]

Is it still worth opening a Roth IRA if you're 43 years old? I'm currently debating whether to open an account with Fidelity, Wealthfront (with which I already have an individual and savings account), or Sofi. Any advice would be appreciated. Awesome videos.

[@OptimizedPortfolio]

Definitely can be! Tax-free growth, tax-free withdrawals, and no RMD's are some great benefits. I've got a separate video on the Traditional IRA if you think that might make more sense. Usually comes down to one's best guess about their future tax rate relative to current. Thanks!

[@Ryan-iq2zd]

@@OptimizedPortfolio Thank you so much!! I appreciate your feedback.

[@OptimizedPortfolio]

@@Ryan-iq2zd Anytime!

[@mainulhaque3780]

@optimizedportfolio, please help me to understand Roth IRA. What I would like to know if my Roth IRA have 1 million worth of dividend stock, which gives me 50k per year. If my Roth IRA account is more than 5 years old and I am 59.5 years old, will I be tax for future dividends (after age 59.5) if I retired and only take the 50k and leave my 1 million ? What I never take out the 1 million and live off the 50k per year. Where is the irs code can I read that identify the answer to the question I asked.

[@OptimizedPortfolio]

No taxes on the qualified withdrawals you describe, because remember that money was already taxed before it went in.

[@kyleskitco7235]

Yes, I have roughly 43k in mine at age 28. Ginger ale portfolio all the way 😎

[@OptimizedPortfolio]

Awesome!

[@DRventura333]

congratulations! you are doing better than 80% of people over 50; keep up the great work in saving for your future

[@danielthompson1882]

What is better Roth or traditional?

[@OptimizedPortfolio]

Depends on highly personal circumstances. Video coming soon. See article here: www.optimizedportfolio.com/roth-vs-traditional-ira/

[@dannyrand1733]

@@OptimizedPortfolio Thank you for providing that link.

[@OptimizedPortfolio]

@@dannyrand1733 Anytime!

[@wr3add]

Can I have 2 for 14k a year?

[@OptimizedPortfolio]

No

[@Kep19901]

Roth IRA = 100% AVUV

[@OptimizedPortfolio]

Brave.

[@Kep19901]

Why brave? Arent you invested in AVUV? 🤔​@@OptimizedPortfolio

[@Kep19901]

@@OptimizedPortfolio how is that brave? Don't you invest in AVUV?

[@OptimizedPortfolio]

@@Kep19901 Was mostly joking. Tracking error regret from having an entire account in 100% AVUV. I do.

[@Kep19901]

@@OptimizedPortfolio I see, it's hard to show sarcasm through text. But what do you mean about tracking error regret? I do 100% S&P 500 through my work 401k. I want the roth to grow as big as possible. I'll probably stop doing 100% AVUV in there until I hit $50k of contributions.