Usually, we talk about income limits for the Roth IRA but today we're looking at a big tax mistake retirement investors make with the income limits on the traditional IRA. While there is no income limits on contributions there is an income limit on the deduction you get if you are covered by a retirement plan at work and today we'll help you avoid the trap of having pre and post-tax money in your traditional IRA.
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Good old Form 8606
Wow thx Dustin!
this is still confusing lol. would it be a good idea to just open up a brokerage account ?
It’s okay to open up a taxable brokerage account but generally better to start and fully fund ($6,000) with a traditional or Roth IRA brokerage account first.
So what’s the average Traditional IRA balance for someone in their 50’s? Asking for a friend. LOL!!!!
lol! I would say try not to compare yourself to others and do what you can now to reach your goals 🙂
You look like a magician writing on the board. What tech are you using for your studio?!
getting ready to retire have over $400k in my 401K account looking at buying some property overseas and would like to use $100k from my 401k account rollover Roth or traditional?
Sounds like a good situation to find yourself in. I am a financial advisor and wouldn’t mind helping you out.
Thanks so much for sharing this valuable information. I learned a lot from it.
When you initially think his background is a green screen! Nice setup.
This def helped me out with my traditional IRA, thanks so much
Do your comments about a 401k plan also apply to a Roth 401k?
Thank for this info
This is really great stuff man. you are really helpful.
Use form 8606. That separates the amounts for you.
Super helpful… what are the benefits of a traditional IRA if I don’t qualify for tax deductions? (Ie… if 2019 I contribute $6k post tax with $150k salary… 2020 do the same… 2021 do the same…)
Why don’t you convert that ~$18,000+ traditional IRA to Roth IRA?
Do you have another video explaining how the form 8606 play into the tax on T IRAs? I’m curious how that works. Thanks.
When you say “So if you have a traditional ira, and you put money in it, and you are cover by a 401k plan at work.”
Do you mean I have to have a Traditional ira besides just my 401k plan to be able to take the deduction? Or Traditional ira, means 401k plan?
I think what you did is scare people from using a traditional IRA more than try to inform them about a tax technicality.