Hot topic alert! Today on the Finance Flash Go! podcast, we’ll be discussing the Roth IRA!
The Roth IRA is named after Senator William Roth who introduced the concept.
With a Roth IRA, your money is taxed at the time of contribution. Your money then grows tax-free and is NOT taxed upon withdrawal. The contribution limit in 2020 is $6,000 and the general rule for age of withdrawal without penalty is 59½.
Ok, here’s the kicker…there is an income limit to be allowed to contribute to a Roth IRA. To clarify, the income limit in 2020 is $139,000 for individuals and $206,000 for married couples. So, most physicians will again be above these limits.
With that being said, there IS a way for high income earners to contribute to a Roth IRA. It is colloquially called a Backdoor Roth IRA.
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