Thanks for putting this out there it's good to know. I eventually gave in and took out $7k from my Roth IRA. Throughout the years I have $15k of contribution and like what he says at the 6 min. mark, I'm not going to be taxed or incurred any penalty since I'm only taking out money from my contributions only. Now I'm debt free, less stressed, healthier and happier. I'm able to save more and invest more. This time compound interest is actually working for me and not against me.
@livelovedaydream
Жыл бұрын
I'm thinking of doing this too .glad to hear that it was something that worked for you. Seems so many are against it
@MrPookiexL3oi
Жыл бұрын
@@livelovedaydream Honestly I was against it for many years. In the past I was not financially stable and also my money mindset was not strong it was in the learning phase about savings and compound interest so for me to pull money from my Roth IRA it wasn't good to do during that time and because I was worried I might build a bad habit and start taking money out my Roth every time I run into a bind. Fast forward many years later into the present day I have a stronger money mindset and stable income that I'm able to pull money out and then contribute back the money I took out within that same year and have a little extra money to invest in other assets. It's still risky to do for those that don't have a strong money mindset. I wish you a debt free life and a boat load of wealth.
@pascaljoanne
5 ай бұрын
So I CAN tap my Ira after 59 1/2 and just pay a tax on it Correct
@gordy678
Жыл бұрын
What if I am 74. Would only pay taxes as income on traditional IRA. HOW WOULD I figure out the taxes?
@IRAFinancial
Жыл бұрын
Hi - if you are over the age of 73 in 2023, you would be required to take a required minimum distribution (RMD) on a portion of your pre-tax IRA balance. The annual RMD is approximately 3% of the IRA value. The amount taken as an IRA RMD is added to all your other income on IRS Form 1040 and the applicable tax rate is based on the aggregate sum of all income reported on your 1040. Below is the 2023 federal income tax rates for those married filing jointly: 2023 tax table for married, filing jointly Tax rate Taxable income bracket Taxes owed 10% $0 to $22,000. 10% of taxable income. 12% $22,001 to $89,450. $2,200 plus 12% of the amount over $22,000. 22% $89,451 to $190,750. $10,294 plus 22% of the amount over $89,450. 24% $190,751 to $364,200. $32,580 plus 24% of the amount over $190,750. 32% $364,201 to $462,500. $74,208 plus 32% of the amount over $364,200. 35% $462,501 to $693,750. $105,664 plus 35% of the amount over $462,500. 37% $693,751 or more. $186,601.50 + 37% of the amount over $693,750.
@jackofallj1433
Жыл бұрын
Am I able to pay credit card debt with a self directed IRA?
@IRAFinancial
Жыл бұрын
Hi, I really appreciate your question. If you had a traditional IRA, you would have to take a taxable distribution which would be subject to a 10% early distribution penalty to pay off credit card debt. However, if you had a Roth IRA, you could take out the amount you contributed to the Roth IRA tax-free ad use to pay off credit card debt. In addition, if you were over the age of 59 1/2 and the Roth IRA opened at least 5 years, then all Roth IRA distributions would be tax-free, and you can use all Roth IRA funds to pay your credit card debt. Note - if you are self-employed or have access to a 401(k) plan at work, you may be able to take advantage of the 401(k)-loan feature and borrow the lesser of $50,000 of 50% of your account value and use the funds for any purpose. Hope this helps.
@petertornabeni602
Ай бұрын
Do this now before these fools change the rules because believe me they’re gonna do everything they can to take what we have
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