401(k), 403(b), IRA, Roth | Retirement Savings Plans Explained (For 2022)
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- Опубліковано 15 чер 2024
- What are the different types of retirement savings? Which one should I choose? Let's answer these questions with our video about 401(k), 403(b)s, IRAs and Roths.
IRS Website 2022 Retirement Plan Change www.irs.gov/newsroom/irs-anno...
Timecodes
0:00 - Intro
1:21 - Retirement Savings Plan Fundamentals
2:06 - Employer-Based Tax-Advantaged Buckets
2:45 - 401(k)
6:26 - Roth 401(k)
7:11 - Individual-Based Tax-Advantaged Buckets
7:42 - Traditional IRA
8:47 - Roth IRA
9:45 - Summary Of Retirement Savings Plans
10:20 - My Recommendation For Order Of Filling These Buckets
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DISCLAIMER: I am not a financial adviser. These videos are for educational and entertainment purposes only. I am merely sharing my personal opinion. Please seek professional help when needed.
As a Financial Professional, I would to offer you a small re,under. The Secure Act of 2019 extended the RMD requirement to 72 years of age. Great video! Just that one adjustment should be noted.
Great video Tae! I was recently promoted and this video helped break things down!
Glad it was helpful! Thank you for watching!
👍👍👍
You can’t directly fund your Roth IRA if your income is too high, but you should be able to contribute the max, after tax, to a traditional IRA and convert to a Roth IRA. In 2023 the income limits scale your max Roth IRA contribution to zero at 153k/228k for single/joint tax filing, so then you have to do the backdoor Roth IRA.
I have a question, so if I had a 401k with companyA for $X, I can move this to an IRA account when I resign? And If cove to companyB and i open a new 401k. Are you saying that I can fund both the IRA and my new 401k to the maximum limit for tax deduction?
@@lindoskyiI’m not an expert but if I understand you correctly, then yes with some caveats. 1) be sure to convert correctly to an IRA, you will need to contact the financial institutions on both sides and make sure they do things right (otherwise you may be on the hook for taxes for the whole amount and possibly more troubles). 2) as I mentioned, if your income is too high, then your max IRA contribution for tax deduction purposes goes to 0, however you can still make max contributions and not do the tax deduction, and furthermore do a back door Roth IRA (converting your regular IRA to Roth).
@TheDOS thanks. This was my thought process, but I'll go further with your advice... talk to both financial institutions. Thanks again
Does contributing to my Roth 403b affect my contribution limit to my Roth IRA? Thank you!
No, you may contribute $23k to your Roth 403b and $7k to your Roth IRA.
This question is for educational purpose only not financial advice.
- Many 2nd generation children have parents that do not have retirement accounts. In my circle, parents are now turning 60 and are fortunate to invest. Would which investment vehicle is the most beneficial for those 60 and over.
Are they working with access to 401(k) or similar company retirement plan?
@@alrocky they are working but company does not offer 401k and was thinking about solo 401k.
@@AllGood_2024 If working for company they might not qualify for solo 401(k) which is for business owners or self employed. At very least they should contribute $7,000 to their *2021* Roth IRA first and then $7,000 to their 2022 Roth IRA.
We can't tell you without all information. More importantly you should not want advice from people who know nothing of the situation.
You can't give tax and investment advice in a vacuum. All information is needed and this is not the place for it. Go to a fee only advisor or hit the library.
You won't necessarily pay less taxes if you do it wrong. I've seen people with large rmds because they didn't pay attention.
Tax advice which is what retirement accounts involves takes all information and planning. I also don't like the cookie cutter advice 401k to the match and then Roth. Because many people will not save enough to even hit the standard deduction in retirement and all their income could be tax-free with a traditional IRA. After all the median retirement savings only like $183,000 and what's a safe withdrawal rate with that and what's the standard deduction?
The one investment account you missed in this video was the HSA. This is how I personally prioritize my investments and how I recommend others to do:
Up to Company Match (Preferably into the Roth 401k)
Max out HSA
Max out Roth IRA
Max out 401k
If you still have money leftover open a taxable brokerage account (but at this income level for a single individual they will have to invest into the traditional IRA married should still be eligible to Roth) they would just need to take advantage of the backdoor Roth.