Finance Flash Go! Episode #39: Traditional Individual Retirement Accounts (IRA)

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 59Ā½ as long as the money has been in the account for at least 5 years.

ira

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 ā€“ once at contribution and once at withdrawal!

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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 Advisorā€™s
Stress Free Stock Market Investing Is Easier Than It Seems!
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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].

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Jordan Frey MD, a plastic surgeon in Buffalo, NY, is one of the fastest-growing physician finance bloggers in the world. See how he went from financially clueless to increasing his net worth by $1M in 1 year Ā and how you can do the same! Feel free to send Jordan a message at [email protected].

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