Hot topic alert! Today on the Finance Flash Go! podcast, we’ll be discussing the Roth IRA!
Listen to the full episode and subscribe here!
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.
Related posts:
How to Find the Perfect Balance Between FIRE & YOLO
5 Easy Steps for Physicians Who Hate Personal Finance
Finance Flash Go! Episode #45: Small Cap vs. Mid Cap vs. Large Cap Stocks
My Stock Portfolio Is Better Than Your Financial Advisor’s
Stress Free Stock Market Investing Is Easier Than It Seems!
Important Money Lessons That I Learned From My Wife
Finance Flash Go! Episode #44: Understanding Growth vs. Value Stocks
I really hope that you all enjoy the Finance Flash Go podcast! We plan to release a new episode every weekday answering important finance questions. If you ever want to submit a question to our podcast, send an e-mail to [email protected].
And please subscribe and give us a 5-star rating if you enjoy the podcast! It helps us continue our mission of helping all of us to achieve financial well-being!
