In this episode of Tax Blueprints, ‘IRA 101: Navigating the Intricacies of Traditional and Roth IRAs,’ we delve deep into the workings of Individual Retirement Accounts (IRAs). We explore the differences between Traditional and Roth IRAs, discuss contribution limits, income qualifications, and explain how the ‘basis’ in an IRA impacts taxability of distributions. You’ll learn about penalties for early withdrawal and exceptions to these rules. We then walk you through the backdoor Roth IRA strategy and how you can roll IRAs into 401ks. Unpack the concept of Required Minimum Distributions (RMDs), understand the tax benefits of Qualified Charitable Distributions (QCDs), and discover the implications of the SECURE Act for your beneficiaries. Finally, we highlight the power of compounding interest over time and provide a practical example of the potential growth of your IRA investment. Whether you’re new to retirement planning or seeking to optimize your strategy, this episode is packed with valuable insights for your financial journey.
PODCAST