The $65,000 Roth IRA Mistake To Avoid

One of my favorite retirement accounts is a Roth IRA for many different reasons. A Roth IRA is a type of individual retirement account that allows individuals to make after-tax contributions to the account, and to withdraw the contributions and earnings tax-free after a qualifying period. In this video, I'll go through 10 of the most common mistakes I see investors make.
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A non-working spouse can open a Roth IRA if their partner has taxable income and they are married and file their taxes jointly. In 2023, the contribution limit is $6,500 for those under the age of 50 and $7,500 for those 50 and older.
Maxing out your Roth IRA every year is extremely important. Since you cannot go back to retroactively contribute money for previous years, you should try to contribute up to the limit every year. You have up until the tax deadline (of the following year) to contribute to the current year.
I've seen a lot of people forget to invest money once they deposit it into their Roth IRA. This is a big mistake a lot of people make because this is how they're expecting to grow their money for retirement. It helps if you have automatic investing set up for your account so you can avoid this issue.
Withdrawals from a Roth IRA before age 59 1/2 are generally subject to taxes and penalties unless they meet certain exceptions. Some of the most common exceptions include being able to withdraw your contributions. Another is for first-home buyers where you can withdraw up to $10,000 for the purchase without incurring taxes or penalties. There are a few others and there are restrictions with each one so do your own research on this one.
Maxing out your Roth IRA before your Taxable Brokerage account is very important. A Roth IRA is exempt from taxes while the money is growing and when you withdraw it. With a taxable investment account, you have to pay taxes on the dividend distributions, while it's growing, and when you withdraw any gains from the account. From a tax perspective, it makes sense to make sure you've contributed up the max within your Roth IRA before investing in your taxable account.
Understanding your personal risk tolerance is very important so you don't invest in a way that doesn't suit your personality and long-term goals. Since money with a Roth IRA is never taxed, you want this account to get as large as possible. This could cause some investors to take on more risk than they normally would try to get this account to grow very large. It's not worth it so make sure to understand how much risk is right for you.
You have to be under a certain income limit to be able to contribute to a Roth IRA. I list out what those look like in the video. If you happen to be above them then you can still contribute to a Roth IRA through something called a Backdoor Roth IRA. Make sure to understand the tax consequences before doing this.
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Disclaimer: This video is for entertainment purposes only. Everyone's situation is different so do your own research before making any decisions with your money. If you need help then contact a Certified Financial Fiduciary before trying anything that is mentioned in this video. I prefer a Fiduciary financial advisor that charges an hourly fee as opposed to an ongoing fee based on a % of your portfolio.

[@JarradMorrow]

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[@200Nora]

I did not work last year. Is there a way I can contribute? I know the implications if the contribution is not a pretax money. I have save money from former years or work. I am also single no husband to contribute. I am feeling the pain of not been able to contribute.

[@JarradMorrow]

Not unless you're married and you file your taxes jointly (the first mistake I talked about)

[@part1801]

My question is, wouldn't one Roth IRA that you contribute $6000.00 vs having two at $3000.00 result in higher dividends from compound interest over time assuming both investments are giving about the same rate of return?

[@alrocky]

@@part1801 No: $6k * 5 growth = $30,000. [$3k * 5 growth = $15,000] + [$3k * 5 growth = $15,000] = $30,000.

[@jacktran01]

10k for a investment into a House gives a much higher return then 6.11 if rates are low as your mortgage rate would be outpaced by equity growth and the mortgage gives the 10k 4-5x leverage.

[@JOESUBA122]

I am 52 and just started my Roth IRA! I know I am behind the ball but I will do the best I can to get my life in order! This is great

[@JarradMorrow]

Love that mentality. Keep up the good work 👍🏻

[@anamedina6690]

you are not alone. Im 44 and just learning about all of this

[@JamesBurchette]

Just opens mine today I’m 27 and I feel stupid for how long it took to get my life straight

[@Savsal12]

@@JamesBurchetteyour in good shape bud. Compared to other people

[@matthewwilliams9200]

Never to late to start try to get out of debt first and secure a paid for house at same time

[@rustyme1122]

I've been retired going on 5 years. Have a decent size Roth account. I'm going to cash out about half of it and buy my dream car, close to 150k. Don't tell me it's a dumb idea. Saving your whole life and not buying what you want is a dumb idea.

[@JarradMorrow]

I don't think that's a dumb idea if you can afford it so I'm happy for you! 👍🏻

[@Jack-id4qm]

Hey what's your dream car? I'm a car guy I just gotta know. Also big congrats 👏

[@rustyme1122]

@@Jack-id4qm 🚔Porsche 911 not sure what trim yet. I'll wait a few months and see what the market does. Lots of rumors a big market crash is imminent. Also waiting on the release of the 2024 models. Hopefully will take delivery in early 2024. 👍

[@alceja3522]

@@rustyme1122 u only live once enjoy that porche my friend!! Heck of a car!

[@Crittek]

Hell ya brother! As long as you know it’s not ruining all your hard work, buy it! Being that you’re a Porsche fan I’m sure you want RWD. Being an older gentlemen, a manual? For that money you can get a GT3 RS, cream of the crop really. On the less expensive but still incredible side, the Carrera GT.

[@BadPhD777]

Preach it brother! I love how you don't beat around the bush and tell people how dumb it is to withdraw from a retirement account before they are retired. Money in before retirement, money out after, period.

[@JarradMorrow]

That one makes me cringe so much whenever I hear about someone doing it.

[@BadPhD777]

The government gives too many ways to use your retirement money before retirement. If they want to really help people, they need to get rid of all of the exceptions.

[@user-pw9zf7zi9w]

Thanks for the information. I am 23 and just opened my Roth IRA yesterday.

[@prettygirlrock1106]

Just opened mine today ❤

[@user-pw9zf7zi9w]

@@prettygirlrock1106 Glad to hear it. What are you investing in inside of it?

[@bobbyroberts5751]

@@user-pw9zf7zi9w24 and just opened mine today. I’m doing it with fidelity and I did 70% in fidelity 500, 15% in mid cap and 15 in small cap

[@johnussery3386]

I've made mistake #4 early on. My "financial advisor" told me about all the great benefits of an Roth IRA, but didn't tell me I had to invest it. Sounds silly now, but I didn't know much about investing and assumed they would do it for me. After about a year and no growth other than my contributions, I figured it out. Now I use the basic three fund portfolio (VOO, BND, VSGX).

[@JarradMorrow]

Thanks for sharing! I’ve talk to at least 5 people who made this mistake. As obvious as it seems, I still felt it was important to mention.

[@michaelswami]

That’s how we learn. Good choices!

[@DestinationRetirement]

@@AshorinaG Yes, I have a Roth at Fidelity. They are helpful there.

[@LittleMopeHead]

I just realized this today! I didn't know anything about this. After 4 years of opening the account and depositing max every year! 😬

[@MrPennstate2014]

🤦‍♂️

[@stevendiaz7633]

Im 40 and just graduated from accounting and im starting. Its not where you start but where you finish

[@hmr7218]

Your my hero I'm also 40 starting over just bought a house😊

[@magicdinho107]

About to be 35 and this is encouraging, LETS GO!

[@joelr1112]

I'm 41 and I'm just an action away

[@Ira_Slingsby]

I agree with you 95% haha. If you have an opportunity to buy a good piece of real estate and you need the $10,000 from ROTH, it is not ALWAYS terrible. The 6% appreciation you mentioned is on the WHOLE property, not the $10,000. If you buy a $200,000 property and it appreciated 6%, your $10,000 down payment just increased to a $22,000 equity postion in one year. That next year would be $34k and this is only assuming the appreciation and doesn't take into account the principal pay-down of the loan. That's over a 100% return tax-free for that $10,000 dollars after the first year. And don't forget, principal pay down, tax right off on interest, and owning where you live/opportunity for passive rental income in the future. Just saying, you can't create a blanket statement that it's dumb to utilize the aforementioned functionality of a ROTH. For some, that $10,000 will be a massive game changer with gains way beyond even the $100,000 example if kept in the ROTH over 30 years. ROTH is powerful, but so is real estate.

[@jacktran01]

I believe you meant to say $12k

[@JohnnyMastro]

As a Canadian, we don't have to invest the year of, in order to make use of the contribution room. in a TFSA (tax free savings account), the contribution room is carried forward and no timeline to invest is set :) There is also no penalty for us to withdraw all of our money (if need be!), even if it surpasses our initial contrition amount! All money withdrawn in a year will be available in contribution room the following year! To make things better, Canadians can use the TFSA for life! I just noticed to many differences between a TFSA and a Roth IRA! Great content and info!

[@grady3691]

Well Canadian taxes are insane so…..

[@kidthebilly7766]

roth iras generate so much more money though

[@chancecarlson2023]

The amount you get from an IRA is substantially more, it's not even comparable

[@invertedv12powerhouse77]

If you live in alberta it is not as bad, and arguably cheaper than some states from what I understand.​@@grady3691

[@OmarJano]

I just opened a Roth IRA account and this video was just the thing I needed! Thanks!

[@konastuff603]

My biggest mistake is looking at it daily. Oh and selling 74 shares of nvda the day before its earning report and missing that 80$ a share jump.

[@insomnia9999]

One of the few people on KZbin with some sense 👍🏾

[@keithgour2238]

Awesome advice. I currently invest into a Roth IRA with Fidelity in good growth stock mutual funds only. These mutual funds have a long track record of outpacing the S&P and a decent dividend yield. I also have a company 401k that I'm capitalizing on with the employer match as well.

[@danielcutting2796]

Thanks for going over these mistakes

[@JarradMorrow]

No problem. Glad it was helpful!

[@veganmamafourgirls5370]

Thank you for explaining all of the ins and outs of Roth IRA's. I just opened one, but haven't funded it yet. I am planning to fully fund and invest it before tax day to get last year's contribution and then begin contributing for this year! I was defintiely wondering about different accounts at different brokerages, too.

[@JarradMorrow]

Glad it was helpful! Happy to hear you’re going to be able to get 2022 maxed out in time 👍🏻

[@moneill75]

@ 11:12 “You don’t want to get caught trying to defraud the gov’t” That’s the politician’s job.

[@JarradMorrow]

😂😂😂 tru

[@BermudaBrian]

I just found your channel and LOVE you info. It has helped me A LOT. With this video, I had opened a Brokerage Account w/ Fidelity and was days away from investing in the Brokerage AND Roth IRA.... Luckily, i watch the video and am going strictly with the Roth IRA. Appreciate the help!

[@stanimal8]

An important difference with ROI on home purchases vs most other investment, is you typically only put ~20% down, which mean your returns are leveraged up to 5X without needing to pay PMI on the loan. So that average 6% annual appreciation on real estate become close to averaging a pretty awesome 30% ROI once the 5X leverage is included, AND the associated interest is tax deductible. Additionally, in many cities, rent often cost more than the monthly mortgage payments. Plus, a married couple could pocket $500K of capital gain tax free from the sales of their home. Therefore, withdrawing $10K to help make down payment on a home is not necessarily a bad idea. Although using money from other sources is preferred.

[@allisoncornell5823]

I know it's been a while since you said it, but I still find myself saying "A-dios" at the end of the videos!

[@JarradMorrow]

😂😂 omg I haven't said that in a video for a very long time

[@FirinMahLazer1]

On the point of automatic investments. I had to set mine up with Schwab and just know that you have to set up the automatic draft from your bank account to the IRA then set each each mutual fund or whatever you're buying separately. Example would be you have to set the draft day as every Monday it pulls $150 then on Tuesday it buys $50 of mutual fund 1, $50 of mutual fund 2, and $50 of mutual fund 3. I assume most large brokers are like this and was a little more convoluted to set up than I originally anticipated.

[@thetacticalaccountant]

Finally. I am getting married and could not get a concrete answer if we could both contribute the max amount. All I got was answers on the income limit.

[@JarradMorrow]

Congrats on getting married! Glad this answered your question

[@mattieice2988]

Your hired Immediately !! Wish i could stop buy your office Today well Done

[@markgeyer1]

The multi-year multiple Roths, then combining them is genius! Never thought of that. Limits foster creativity 😂

[@ancilborromeo4312]

I am 63 years and putting 20% on my 401k (company matched), is it too late for me to open a ROTH IRA? I don't qualify for ROTH due to my income bracket. Thanks

[@akin242002]

Great video! Before even mentioning investing, this should be a starter video on investing.

[@JarradMorrow]

Glad you liked it!

[@adange11]

Thanks for the content with no bulls**t. Going to subscribe!!!

[@JarradMorrow]

Appreciate it!

[@laneca223]

Nobody talked about rule #5 when I searched back in 2021. This is very informative. Thanks for sharing!

[@abufarhaz2306]

I wish you had created that video six years ago. Over the last six years, I invested $25k, continuously buying risky stocks along the way. My portfolio is now valued at only $8k. What a loss I've incurred. According to your calculations, I've missed out on almost $380k in potential future earnings.

[@FlyingFlaneur]

The algo recommended this video. I liked it.

[@JarradMorrow]

Appreciate the feedback

[@cantgetright742]

I max the employer contribution to my 401k and then I match it into a Roth IRA. Everything else goes to a brokerage. Saving for retirement is saving for retirement. But if I want to put it to work while I wait another 30 years I can.

[@onlywenilaugh6589]

Of course the Vanguard settlement fund is making 5.28% right now so I'm just keeping my money in it until rates start to drop and stocks get a bit cheaper.

[@michaeltewes7833]

Another thing is You have to leave Roth money in for at least 5 years before withdrawing !!

[@stevper6394]

doesnt the loss of taxes put a dent right away at any gains from contributing early to HSA out of pocket bypassing payroll.

[@sydewayzmo3905]

Im 45 and have $250k in Pension I need to distribute. I want to cash out 50k and roll over percentages into two custodial IRA for kids, max out my ROTH IRA for the year, and open a traditional IRA. I hope thats my best option. Im medically retired on fixed SSI income.

[@divo_n1437]

Am currently 23 and am going to start a ROTH or a traditional and “forget” about it

[@Chelefea]

I’m make 20k at most a year and I can’t max it out but I’m trying my best to put as much money is as I can 😅

[@JarradMorrow]

We all start somewhere so no worries. Just try to focus on increasing that income as time goes on and work towards increasing contributions along the way. Proud of you for getting the ball rolling with putting anything into the account. Starting to build that habit of investing on a consistent basis will pay off in the long run.

[@ndwolfwood09]

Better early than later! Good job!

[@bobby350z]

First thing, even if you pay is higher than what you show, you can still contribute to the Roth IRA. Called Backdoor Roth IRA. I wish that was metioned.

[@adamjames4959]

That statement about not withdrawing for real estate is bonkers, at least in phoenix. The house I purchased 3 years ago appreciated 235k, so not withdrawing that money to buy that property would have cost me 135k if I had left it for 30 yes at 8%. Only thing with which I disagreed.

[@invertedv12powerhouse77]

Interesting. TFSA, the equivalent roth IRA in Canada, does not have a limit. Your allowable limit begins at age 18, and goes up every year to how much in total you can have. I think its 6500$ a year rn.

[@ROMEKBNY]

I don’t see ever having enough extra money laying around to max it out. I’ll be lucky to be able to contribute half.

[@JarradMorrow]

Anything is better than nothing. Do what you can with what you have right now and try to increase over time. Have you made a plan for how you can increase your income over the next few years?

[@omardailey7928]

Great info 🔥🔥🔥🔥

[@JarradMorrow]

Appreciate it!

[@NoneYa899]

I really appreciate the insight. For a 30 year old who knows nothing about investing, what are you opinions on the fidelity GO Roth?

[@Popitrav]

What happens if the stocks we invest in some home crash ? Would we just be out of all of the money we invested ?

[@RightFootForward11]

Great video for those new to Roth investing! I am in the bracket where I need to contribute doing the back door method, however, it wasn’t clear to me in this video how to do so. Once I convert a traditional IRA into a Roth, how would I contribute to it the following year?

[@ninobk196]

Assuming you have an IRA already, you would need to put the money INTO the IRA first and from there "convert" it to a Roth or move it over to your Roth, but first you need to deposit the money into the IRA. I use Vanguard, so I need to leave the money there a couple of days. When I go to my IRA, there is a "convert to ROTH IRA" button, and then I select the amount I want to move/convert to the ROTH. I use to think it was going to be endless paperwork but it's actually really easy.

[@REBELLIOUS513]

how does this work for day traders?..can you trade say futures or only make long term invetments?

[@jaws7794]

too little per year maxing out the IRA's (6500$ or 7500$). I would like to see the same max amount like a 401k. & not having to use a backdoor option..

[@takeshii]

Would you put maxing out the roth IRA at the top of the list if your companies 401k is whack because their matching policy is discretionary.

[@Aznboy430]

I’ve made one of those mistake by investing to a individual account when I first started. But what is the best way to transfer my individual portfolio to my Roth without losing much? Thank you

[@JarradMorrow]

You can't transfer holdings from a taxable brokerage account to a Roth IRA. It has to be funded with money.

[@EMan-cu5zo]

Sell stocks in the account and just transfer the money. If it’s a lose and you still like the stock just buy it again in the Roth. There is no wash sale regulations on a Roth either.

[@c28.]

I sold the stocks I was down the most on in my regular brokerage account and then transferred the money into my Roth IRA. Selling Whatever you have the lowest gains on will result in a lower capital gains tax. You also get charged more for any stock that isn’t held for more than a year. Anything held longer than a year is considered long term capital gains.

[@chrismiles2000]

Embrace the Gray!

[@DMalltheway]

I’ve had a ROTH IRA since I was around 15 years old set up by my mom, I’m 35 now and have maxed out the contributions for over 20 years straight and invested the money mostly in Vanguard Target Retirement Index funds and brokerage until I realized around age 24 I needed to go full 100% stock since I’m so young, so now I have Vanguard Total Market Admiral Shares. I have a separate brokerage non retirement account that’s also been great with Vanguard. The earned dividends alone annually is so nice and I just reinvest with them.

[@privacyplease64]

Nice. How much is your Roth IRA worth now?

[@DMalltheway]

@@privacyplease64 More than I imagined at 15 years old.

[@KrakkenXXX]

20 bucks

[@KevinKake_]

i wonder what happens when you exceed the contribution limit??? My hypotheses is the IRS will certainly ask you to pay up in the following tax season.

[@cyndigendreau1659]

One question, can my husband and I each have a roth IRA in 2 separate brokerage institutions and max them both at $6500?

[@anonymous-fg9fn]

Should I be maxing out ROTH 457(b) before doing anything else such as roth ira or taxable brokerage account?

[@bdtn342]

Jarrad. Why doesn't the IRS allow you to add money into the roth for the years you didn't contribute. I dont understand Why we y can't we go back and add the equivalent for those missed years?

[@JarradMorrow]

Great question that I don't have an answer to

[@bdtn342]

@JarradMorrow I can't find a reason anywhere. If ya come across the answer please share it in a video someday. Thanks.

[@jadepurdin3183]

This was very helpful. I am doing mistake 6/7. I knew of them, was unsure of withdrawal rules which was mistake 5 confusion. I knew I couldn’t withdraw money before 59.5 just hiding account from wife because she doesn’t like investing so was in case she told me to get it out.

[@_MoneyMike_]

Lol jeez

[@alex182618]

I don’t get bonds. They made sense 20+ years ago when returns were above the inflation. Today financial advisors keep investing in them out of habit. Or perhaps business schools talk students into allocating money to bonds to make sure the government does not run out of money. Without bonds the government would have to raise taxes.

[@TrapZeroEX]

2 reasons why you should have some bonds. For stable income (dividends) if you are retired and when the market is really unstable.

[@whatsup3270]

its likely bond price and yield are being confused. If you think of stock dividends to be similar in function to interest income on a bond then you can watch stock prices rise and fall with or without the dividend, same for the bond prices with or high interest rates. simply they buy and sell on yield not interest rates

[@MRkriegs]

The bond market is bigger than the stock market. Rich folks buy bonds for a reason

[@pauln8984]

If i have a Simple IRA thats through the company i work for, can i still do a backdoor Roth IRA on the side? (Im over income limit) or does the pro-rata rule not allow me to?

[@prestonsarlo]

I’m starting my first big boy job first week in November. So I’m a little confused on how the actual Roth schedule will work. Should I just wait until January to start maxing it out. Thank you!

[@trevorrabies364]

Just turned 60. None of my retirement accounts are a Roth IRA. Not taking anything out yet. In 3 different accounts. Defined contribution retirement account and 2 rollover IRA’s. Can these convert to Roth for full or partial amounts or am I stuck with them as is? Recommendations?

[@yourmanzach2307]

i only make 60k per year... i wish i could max but I'm kind of close. 16k per year.

[@gowtampavar5920]

Can you do the backdoor conversion easily multiple times a year. For example, if I want to invest in my Roth the 1st of every month to take advantage of dollar cost averaging, how easy is it in terms of filing taxes to have 12 or more tIRA -> Roth conversions every year?

[@JarradMorrow]

Very good question. I’ve personally only ever done the conversion in lump sums so I don’t know if your brokerage will send the full years info all together or in 12 separate forms. Hopefully someone who has first hand experience can chime in or you could probably get the answer by calling whichever brokerage you use

[@Chris-hr2uj]

I used to do it once a month for several years in the past, and i never had a problem. But now i just do it once per year to avoid the paperwork. I dont think it creates a tax issue for you. Your brokerage should be able to do it for you.

[@smb8677]

Thumbs up for Mollie

[@JarradMorrow]

She appreciates it! 🐶

[@fawkmee]

Do you have any videos that explain the backdoor Roth IRA better? Does the $6500 have to be converted from the traditional to the Roth IRA all at once or can it be done over time? If the former, my money would be sitting in the Traditional IRA uninvested and not making money until it adds up to $6500 and I can convert it to the Roth right?

[@alrocky]

Are you over the income limit for direct contribution to Roth IRA?

[@victorianoel9784]

Thank you for this video. I have both 401k and ROTH IRA through employer. Since ROTH IRA is after tax, would that make sense to cancel 401k and put all money to ROTH? had this thought for a while now.

[@damondiehl5637]

You can stash a lot more cash each year in a 401k and don't forget the company match. That is a 100% return on your money. If you can afford it, do both. $23,000 in your 401k and $7000 in your IRA. And the limits are even higher if you are over 50.

[@WilliamMurphy-uv9pm]

How does a ROTH IRA , or any financial account, ever get to MINUS ZERO territory?

[@YouTh3r3]

If your gross is above the limit, and still put in $6500 on traditional IRA or Roth IRA, how would IRS know that you have money invested?

[@alrocky]

Every year you make contributions to traditional/Roth IRA, your IRA custodians sends you annual Tax Form 5498 which states "This information is being furnished to the *Internal Revenue Service* "

[@catzee4720]

Yes, but what about the RMD's for inherited IRA? The gov says you have to take the required minimum distribution. Sometimes that can be upwards of 10 grand or more, so are you saying just go and reinvest that money elsewhere? Because RMD's are mandatory that you must take once a year and the IRA isn't taxed but your taxed on your individual as income. But you can't reinvest that money back into the IRA you have to take it, it's sort of a use it or lose it type deal with taxes I believe. So kind of not understanding what you mean other than yes if you withdrawl you lose on the investment growth but what if its mandatory with an RMD? Unless you don't know about IRA RMD's

[@goldenarm2118]

How can you actually make mistake #1?

[@donm5909]

No I didn’t say that

[@SsroseL]

Great advice! Can you tell me, if I were to take out say $10,000 from my Roth IRA before age 59 1/2- does the IRS count this as income and tax you on it?

[@gabys9093]

Hi Jarrad. I would like to know what are your thoughts about Chase roth Ira? If I open a roth ira account, can i say auto invest or do I need to choose the stocks/etc ? Thanks!

[@mauro-b6q]

good information

[@shujayethossain6554]

Hi I am 29 and just opened ROTH IRA with Fidelity. Looking to contribute $6509 annually. Could you suggest some stocks that I can invest in with my contribution? Thank you!

[@alrocky]

You may contribute *$6,500* to Roth IRA

[@Tmac4130]

How can someone contribute 6.5k a year only making 50k? That's a huge chunk

[@JarradMorrow]

It's possible. Everyone is different so it all depends on your specific situation

[@abigailarroyo6675]

I opened a roth ira at fidelity which i transferred from Voya. Im 53, what should i do about it? Please,Thanks.

[@markgeyer1]

With it just sitting there, the IRA does nothing. Based on your age (53), you’ll want to invest with a risk level of moderate to conservative 70/30 or 60/40 stocks/bonds. Good luck!

[@System_Down]

In my Roth I put in voo schd iwm and bnd.

[@JarradMorrow]

Happy to hear you found a portfolio that works for you 👍🏻

[@System_Down]

@@JarradMorrow I really like Voo but after seeing how 2022 was it seem as though schd outperformed. I put a small % into iwm just incase mega caps take a dump over time. Most of my funds go towards voo/schd.

[@playloud90278]

I really like your videos and all, but could I trouble you to change your flashy seizure-enducing screen transitions?

[@caquanw]

Regarding income limits, do they consider all forms of income or specific ones?

[@chrismcalister4428]

You left out the fact that if you're 50 yrs old or older, you can contribute a 1000.00 more than someone under 50 yrs old😉

[@AlexRodriguez-fo8nr]

6% excess contribution penalty

[@Washed_Out]

What about withdrawing $2k for business purposes?

[@arturoolea1900]

I invested the money before creating the Roth IRA. Can this be done after investing?

[@JarradMorrow]

You have to contribute to a Roth IRA with new money after you open the account

[@arturoolea1900]

@@JarradMorrow Thank you Jarrad for the guidance! I moved some Reid ETF 😎

[@elchinoxl3034]

So I have fidelity go I just randomly maxed out 2023 few days ago and staring for 2024. Anyhow I have the fidelity go 100% stocks all equity

[@user-fu9mn6kb6n]

6% penalty for Over Contributing to one or more Roth IRAs, until you remedy the over age

[@Matteo-xm6xo]

Love the dog lol thanks 👍

[@Jay_radd]

If you want to transfer to a different brokerage, are there usually fees associated with that?

[@jaysant6958]

Wondering also.

[@JarradMorrow]

It depends on the brokerage because they're all different. They're all pretty transparent about this so it should be pretty easy to find on their website.

[@ranman531]

What if I'm making 90k/year (not over the income limit) and want to contribute more than 6,500 into Roth IRA. Is there any advice on account conversions or 401k rollovers into IRA i could do to somehow get more than 6,500 into Roth IRA per year?

[@JarradMorrow]

You can do rollovers from your 401k if it makes sense for you situation, but you can't put more than the maximum amount of "new" money

[@Ramonimalik]

Can you please explain rolling withdrawal

[@michaelswami]

For 2022 tax year, the Roth deadline is April 18, 2023.

[@JarradMorrow]

👍🏻

[@gabrieladamian8122]

so i quit my job last summer to go back to school, and i just did my taxes for 2023, would i still be able to open a roth ira for the 2023 year, i am going to get a part time job this month so should i want until i get my part time or open one now

[@alrocky]

You have until tax day (typically April 15) to contribute $6,500 to your 2023 Roth IRA.

[@clairenguyen5135]

I want to transfer my roth IRA with Merrill to Fidelity, how do i do that? I’m not sure if there is any fees associated with that?

[@alrocky]

contact Fidelity and they'll help you

[@patricklambert6020]

If you rollover your Roth 401k to Roth IRA, will all the money from your Roth 401k be considered as contributions in your Roth IRA and thus eligible to be withdrawn without penalty like the contributions can from your Roth IRA. Is this where the 5 year rule occurs? Not that you should naturally but curious.

[@tammyque1506]

My son puts the maximum amount into his 401IRA, can he also make a contribution to his Roth IRA?

[@JarradMorrow]

Yes he can contribute to both his 401k and Roth IRA. As long as he follows the rules around a Roth IRA then he's good...which I outline in this video: kzbin.info/www/bejne/g6eVfq2fjt6cjZI

[@tammyque1506]

@@JarradMorrow Thank you! I'll watch the video.

[@AR-ln7ln]

I sent the money and didn't invest it. Roth was the only account opened, I sent the money and had no idea that it just sits at the bank til I go in again and buy something. The cash account should be called cash account, not something money market account. That makes it sound like it's invested. I had a feeling it just sits there and I called them to confirm. Also, I asked it to be invested by taking risk. I said I was willing to lose it. They put me in stock fund. I emptied it later And bought an individual stock. How is stock fund "willing to lose it"?

[@damondiehl5637]

A money market account is sort of a fancy checking account. You stage your money there and then choose stocks to buy. They often pay better interest than a regular savings account, but you have to check to be sure. Stock prices go up and down throughout the course of each day. If something bad happens, the price of the stock can go to zero and then you have lost all the money you spent on that stock. It is unusual for a fund to go broke, as that is a collection of stocks. One stock might go bad, but the others won't. That is the main reason for buying into a fund, you get your money spread over several stocks, so there is less risk that you will go broke.

[@KSMS1012]

I’ve read some conflicting info but maybe you know for sure? I recently did a direct transfer of my Roth IRA from Victory to Fidelity only to find out how unfriendly the Fidelity user interface is. So I want to do a direct transfer again to M1 finance. Since it’s a Roth ira going to a Roth ira directly from brokerage to brokerage, do I need to wait 12 months to start the direct transfer process to M1? I believe no but not sure

[@JarradMorrow]

There is no 12 month waiting period so you're good to go with the transfer. Have you had a chance to mess around with the M1 Finance interface to make sure you like it better before moving the money? Not knocking it at all because its my #1 choice, but I just want to make sure you've played around with it enough before transferring your investments.

[@KSMS1012]

Oh yes, I opened an individual account there and like it so much better so far. Easy to figure things out and I love the pie allocation for the portfolio. I’m completely clueless as to how to balance my portfolio on fidelity and have no desire to spend the time to figure it out 😂😂

[@bobnyberg6328]

Why would one want to have Roth IRA'S with three different custodians? Keep it simple! How can one do a back-door Roth Ira? I have never hear a good explanation on how to back-door Roth transfers!

[@DANgerousWRX]

I have a Roth IRA through Charles Schwab, but my employer retirement account is also a Roth. Can the total between both accounts be only $6500 invested per year or is the $6500 per year just for my Schwab Account?

[@JarradMorrow]

A Roth IRA and Roth 401k have completely separate contribution limits

[@DANgerousWRX]

@@JarradMorrow Thank You for the info.

[@J0N_]

I’m under 591/2, can I sell a stock, take the gains and all and reinvest it in a different stock within a Roth IRA and not pay taxes on it?

[@alrocky]

buying and selling within traditional and Roth IRA are non taxable events

[@flovedove9999]

Can you invest in a Roth with your employer and also at a brokerage company? If so how much at each?

[@alrocky]

401(k) with employer = $23,000. Roth IRA = $7,000.

[@TM-qc5oz]

@7:42 arent you a random youtuber ?

[@JarradMorrow]

*"risky unprofitable stocks that random KZbinrs have been pumping..." Yes, I'm a random KZbinr, but I've never promoted anything other than index funds and their ETF equivalent.

[@TM-qc5oz]

@@JarradMorrow I thank you for your video. This is the first one I saw and it was very helpful.