?? Work at Pickup Points � Flexible schedule

How to Avoid Roth IRA Taxes and Penalties

Rob Berger 263 views

Download Video

Comments

This is a perfect example of why the IRS is an evil entity The IRS should be abolished!
Comment from : @coryhenson5059

Thank you for this video! Just for some clarification, I’d like to take out $5k of my contributions and I’ve made a total of $10k in contributions, keeping in mind that all my contributions have already been invested in some sort of shares or stocks Am I correct in saying in order for me to withdraw $5k of my contributions, without any tax implications or penalties, I would have to sell $5k worth of my investments, and the earnings from that would automatically be considered a contribution because of the ”ordering rules”? brbrIn other words, would me withdrawing the $5k earnings from selling off that share not have any tax implications? I would be under 595 y/o and have opened my account less than 5 years ago
Comment from : @ksbma

Something very important that seems little talked about is how much MAGI not only can but WILL affect how much you can convert to ROTH once you are on Medicare If not VERY careful you will greatly increase your medicare payments Please put out a video on this because it is super important Thank you for the other high-quality videos you have already released
Comment from : @StevenWomack-s4e

Only the US IRS could come up with such a convoluted system of tracking investment savings The five year rule on Roth conversions is utterly diabolical
Comment from : @Canon1DMkII

Thanks It was not until I retired that I realized how complicated our tax system really is
Comment from : @EEF

I just turned 59 1/2 in Jan of 25 I've had a Roth IRA that I converted about 15 years ago from a past employer and just made my first $8000 catch-up contribution in Oct of '24 Do I need to document that somehow on my '24 tax return?
Comment from : @Big2Wheeler

a waste of time
Comment from : @88888gerald

Very good description Learnt new information about Roth conversionThank you
Comment from : @msmbpc24

Am I over 59 and 1/2 if I turn that on 12/30?
Comment from : @Mimi-pt4fo

I moved my 401 k to ira and converted to roth this yr(2025) I will be less than 595 after 5 yrs Will I be able to take just the converted amount before 59 5 without penalty
Comment from : @nebudaniel1559

Great video Roth IRAs are very complicated This is why cash value life insurance has huge advantages
Comment from : @timothythompson4036

Can we all agree this is a bunch of horse crap? Shame on the IRS for making this such a complex system I understand fairly well but I get the idea the standard American probably has no clue what this guy is talking about
Comment from : @jessemiles5856

Needs some advice retired at 55 under the rule of 55 and currently withdrawing income from my 401k My wife is working Am I legally allowed to continue contributing to my Roth Ira
Comment from : @KevenJoslin

Thank you Very comprehensive and easy to understand
Comment from : @julietalw

Tax laws can be so complex, and it’s super helpful to break them down like this Understanding how different policies can impact our finances is crucial for making informed decisions
Comment from : @CharlesLiamh1p

We are going to talk about this or that in a minute Man, you got that phrase down!
Comment from : @jws3925

If u have unearned income like pension social security U can’t contribute or do conversions because you’re not working if u do You’ll be taxed on unearned incomes
Comment from : @williamholloway5789

I was told u can’t contribute or do conversions if u don’t work even if you’re retired and isn’t taken Social Security
Comment from : @williamholloway5789

Great Video, how does the 5 year requirement work with the upcoming IRS changes forcing all catch up contributions into Roth 401Ks for those over 50? When does the clock start, at the time of contribution or the conversion from Roth 401K to Roth IRA? Thanks
Comment from : @cmdub22

Here is what I learned: this whole IRA thing is needlessly over-complicated and it reeks of a method to keep IRS agents and CFP/CPAs employed and in business What special interest group thought this whole system of saving for retirement was a good idea? How many hours per year are we spending in this country trying to utilize and comply with the rules required by this system? Its driven by a government that is obsessed with taxing people to death
Comment from : @dwight_klaus2981

That was the best explanation I've ever heard of the Roth IRA rules This answered all my questions Thank you!
Comment from : @amyw9477

Another thing … do not own an MLP that has UBTI in your Roth
Comment from : @gcs7817

By far the best explanation on Roth accounts, really appreciated how you used the IRS Rules to guide and inform in laymen language Definitely earned a new sub, thank you!
Comment from : @jeangreen432

Does a 401k Roth trigger thec5 year rule? I cannot start a Roth IRA until after I retire BC our income is too high
Comment from : @normanmimsiii7944

What are the rules for inheritance IRA
Comment from : @teresabuck3305

God we live in a dystopian country We get taxed on every little thing We get no healthcare unless we are fortunate enough to get lousy insurance from an employer We send billions to foreign countries, such as Israel who have universal education and healthcare Yet, for us Americans, we get penalized within every nook and cranny brbrIt’s insane Will social security even be possible when I get into my 60s?
Comment from : @runningspeedtrials

Rob's advice would be more credible if he were to remove the osu football from the cubby behind his right ear As of this writing, it's been 1649 days since osu last managed to beat MICHIGAN 🏈
Comment from : @shawnzeppo4361

"I'm not a tax expert" It's all the about the taxes!
Comment from : @UCSF2023

I’m just getting ready to go down the Roth path This is invaluable advice Thanks!
Comment from : @jimjernigan3670

too complex to make sense out of it
Comment from : @DarkBullCapital

I know that I have to pay taxes and penalty but can I take the money out of the Traditional IRA at anytime without satisfying the 59 1/2 year?
Comment from : @hienly3659

Great presentation!! I am 64 and in the process of getting ready for retirement brI opened my first Roth IRA account when it first started in 90’s brI have around 500,000 dollars in my traditional 401K brIf I roll it over to Roth IRA, it will not be taxed When will it be taxed ?
Comment from : @charanjit62

Thanks for the good information and great explanation of overcomplicated rules I do like that you always reference source materials in your videos, so you can read on your own and do further research if needed
Comment from : @kenhomeier8629

Reminder the documentation you need to file every year is stored on your previous tax forms You will need to reenter/update that information for every year you contribute
Comment from : @TopShot501st

if you're 56 yrs old and took some money out of your 401k , can you convert it to roth ira straight away after paying the taxes?
Comment from : @tadrod2323

Doesn’t the pro rata rule apply for conversions on non-deductible IRAs apply if you immediately convert to a Roth?
Comment from : @zuhalterei4090

Very good information thanks
Comment from : @ChandanaYapa-hq3ge

I really appreciate you doing this video You have done a great job of making this easy to grasp
Comment from : @RobinBuckleyPhotographer

The corrupt government makes tax law convoluted and complicated for a reason This allows them to extort more currency from the serfs
Comment from : @dc-wp8oc

Do you have to wait 5 full years to pull out the contributions from the conversion? Or can you do the conversion on 12/31/24 and pull them out 1/1/29? Thanks
Comment from : @AlexMaas-rc9wy

is there anything i should know before moving a roth from one company to another?
Comment from : @johnlynch2862

Can a back-door ROTH be done before April 15 … in this case for tax year 2024? Ie…$7,000
Comment from : @Peter_Wang

Very detailed explanation, I understand it really well and I’m stupid brThank you very much
Comment from : @peterdinglasan2158

I’m retired over 70 I have a 401k that has been converted to an IRA and a Roth that is over 5 yrs old I have rental income from 6 units plus SSI I’m told I can’t put money in my Roth because all my income is not considered earned income If I don’t take the money from my IRA Is there another way to put money into my Roth?
Comment from : @BarryLarsen-j3c

Does that 5 year rule also apply to Roth 403B's, too?
Comment from : @RamTrucks590

What about inherited Roths ? In many cases these are set up to leave to heirs without tax consequences 2018 secure act rules say inherited IRAs must be withdrawn overten years Do five year rules apply?
Comment from : @DS-ql3ou

As a soon-to-be retiree, keeping my 401k on track after a bumpy 2023 is a high goal I've read about investors generating up to $250k ROI in this present sinking market; any suggestions for increasing my ROI before retirement would be greatly appreciated
Comment from : @Cryptoworllddjosh

So if you do a non-deductible IRA contribution (eg 5k) per year for say 10 years (eg 50k total), I only have to pay taxes on the interest that I earned (say 10k over the 10 years)? So, I have to keep very good records on my contributions and interests? How does the IRS know when I have completely withdrawn 50k contributions on the non-deductible and started taking out the 10 earned interest?
Comment from : @meltdownman1

You are an outstanding communicator! Thank you for this ;-)
Comment from : @genelevesque2555

Nice job Helped a lot Thanks
Comment from : @sharrison55

I am planning to open a Traditional IRA now so I can do a contribution to 2023 Roth IRA prior to April 2024 Question I have is will I be penalized if I contribute after April again in to traditional Ira and convert it to Roth IRA for 2024 ? Since my traditional Ira is open in 2024 can u contribute twice max amount in one yr? Or am I thinking this wrong
Comment from : @339Raza

Very helpful!
Comment from : @cryptogrrls

Why Is my accountant saying to take my money out of roth Trigger a contribution tax? Just started this year
Comment from : @WesternNyBigfoot

I pay in after tax money and plan to withdraw at 60 I tell people if you're making less than 100k focus on after tax money so you don't get taxed All your doing is paying the government and not yourself
Comment from : @kungdu

I’m 69, retired, and don’t have any Roth IRAs I’ve been advised to convert to Roth IRAs Why would I want to convert anything if I can’t touch it for 5 years?
Comment from : @jerryburg6564

Thanks for sharing your knowledge with us 🥹💜🇺🇸🙏!
Comment from : @maximoon7077

Will you please advise on Roth investment strategies for an account earmarked for heirs and never be drawn from? We will begin to convert to Roth for our severely disabled son You are a gem Thank you for your expertise
Comment from : @Techie_Mum

Excellent video If I roll over a Roth 401k (for example let’s say $20k, half contribution and half earnings) into a Roth IRA, how is that money classified (contribution vs conversion vs earnings) in the Roth and to which portions of that rollover does the 5 year rule apply?
Comment from : @DIY_FInance_Guy

They want us to make our own retirement so they can cut our social security
Comment from : @kevinulmer9409

Yup, it is a tax trap And the Vanguard and all the investment companies never warn about these
Comment from : @julieahnkoala

Example: Can I make a contribution of $5,000 to a traditional IRA every 2 weeks (when I get paid) and immediately move the money to a Roth IRA a few days later so that after a year I have performed 26 conversions to Roth for a total of $130,000 (way over the Roth contribution limit)?
Comment from : @itsmejp24

The extent that IRS goes to make taxes complicated and life miserable for citizens is unbounded What is worth is that we pay them to do this to us
Comment from : @Sam-tg4ii

If you have a Roth 401k, can you still max out Roth IRA $7k ??
Comment from : @nickarmstrong8311

is there any penalty if I make conversion from traditional to roth Ira before age 59?
Comment from : @udayhomeful

Conversion from regular Ira to Roth triggers tax event converted amount is treated as ordinary income and tax withheld based on your estimated tax rate So if your tax rate is 20 You would have 20 tax withheld usually by brokerage when you make the Roth conversion
Comment from : @fpark101

Outstanding explanation! I have old Roth IRA’s and only recently been doing Roth conversions…good to know the 5 years are lumped!
Comment from : @patrickr9606

I never filed a non deductible IRA contribution, the reason was I have had my Roth for years and years Imma over 595 and I have passed the 5 year rule So no issues as long as I can prove 5 years That could be hard due to broker transfers But I have records of trade transactions in such account So I have proof of first day of first account
Comment from : @vince8436

The last thing you said was "Keep good documentation" I was getting curious wondering if this is all being kept track of correctly and efficiently For me, I just have one Roth account Hopefully that makes my tax prep easier
Comment from : @flipchaput7412

Rob your videos are great and very explanatory Thanks for that❤brQq: I have a employee 401k Does that mean I can’t really have an IRA because I will not get the tax benefits of having an IRA?
Comment from : @thaisbatistaoliveira

Why Tuesday, why not on a Friday? 🤣
Comment from : @JC-hd2tt

If I converted an IRA to a Roth and pay taxes on that amount, will the amount converted count toward my RMD?
Comment from : @mikepitzer6062

New subscriberbrLove how much knowledge you have ,brQUESTION ,if I have traditional ira and roth irabrThe roth fully funded for the year limit (6500k)brIS POSSIBLE TO CONVERSION traditional for that year( of before ) to a fully funded roth ira for the year brAnd paying the taxes now,brCause you never know hiwbr much will be taxes in 10 years brPlease i will like to know
Comment from : @Isgood2beKing

Can you address or talk more about the backdoor Roth You didn't say much about them in this talk Great job explaining Roths Thanks
Comment from : @earlterhune5528

Thanks Rob Is the 59& 1/2 age before the tax year of withdrawal or can it be during tax year ? I don’t understand what IRS is losing by making it just age 59
Comment from : @sindhukrishna9128

Incredibly thorough coverage of an insanely confusing combination of Roth IRA issues Sir, I salute you!
Comment from : @zkb1332

This is an amazing "complete guide" for these weird Roth IRA rules! The Roth IRA conversion ladder has been my strategy for early retirement/financial independence for several years now Currently, I am on year 3 of making my conversions from Traditional to Roth Because I no longer work a W-2 and I am frugal with my spending, I have never paid any income tax on my conversions In the mean time, I have a regular taxable investment account that provides me with funds during my 5-year waiting period
Comment from : @OnCashFlow