Today on the Finance Flash Go! podcast, the topic is Traditional Individual Retirement Accounts!
Listen to the full episode and subscribe here!
A Traditional IRA or Traditional Individual Retirement Account is an investment account available to any individual.
You can contribute up to $6000 yearly (as of 2020) to a Traditional IRA. Also, money put into this account is not taxed. Again, the money grows and then is taxed upon withdrawal (when your effective tax rate is likely lower).
Withdrawing money without a 10% penalty can begin at age 70½.
The main issue with Traditional Individual Retirement Accounts is that the initial tax deduction upon contributing money is phased out for individuals making more than $75,000 or married couples making more than $125,000 in 2020.
Physicians will be above this income limit and therefore, their contributions will be taxed twice – once at contribution and once at withdrawal!
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!
