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Can You Contribute to Both Traditional and Roth IRA? - YouTube
Channel: James Schultz, Ph.D.
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- Can you contribute to both
Traditional and Roth IRAs?
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Yeah, sort of.
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(light music)
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Hey there, Jim Schultz here for F Cubed
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and livefcubed.com.
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And tonight man we are
rocking another finance piece
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inside of the cube, but you
guys might already know,
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we hit all three F's man.
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We hit fitness, finance, and faith.
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So if any of that appeals to you,
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please consider subscribing,
so that you are then subject
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to my continual influence
for better or worse.
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Also, if you survive until
the end of this video,
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man I've got a little pittance
for your troubles tonight.
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Okay man, so let's get right into it.
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So can you contribute
to both a Traditional
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and a Roth IRA simultaneously?
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Yes, you can.
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You just have to be
aware that you're still
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gonna be subject to the
same income limitations
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and contribution limitations.
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Remember, we already hit on
the IRA income limits for 2019
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and the IRA contribution limits for 2019
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in that Spousal IRAs video.
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So make sure you go jam on
that guy if you missed it
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the first go around.
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But those same rules are going
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to be very applicable here too.
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As long as you have
earned income in excess
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of the contribution limits,
then you can still contribute
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$6,000 if you are under the age of 50
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and $7,000 if you are over the age of 50.
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This is a cumulative total across
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both Traditional and Roth IRAs.
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So for example, if you
contribute $3,000 to your Roth
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and you're under the age of 50,
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then you can only contribute
$3,000 to your Traditional.
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If you contribute $4,000
to your Traditional
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and you're over the age of 50,
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then you can only contribute
$3,000 to your Roth.
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And hey, don't forget, the key difference
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is Traditional IRAs allow you to save
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on your tax bill now potentially,
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while Roth IRAs allow you to
save on your tax bill later
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because all your withdrawls,
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whenever you take all that
money out way down the road,
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are going to be tax-free.
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That's it.
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There it is.
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Q&A time - Madames and Monsieurs.
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Question number one, so all
right Jim, shoot me straight,
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which one should I do,
Traditional or Roth?
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That's a really great question,
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and I think for most
people, if you already have
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a 401(k)-type retirement
account at your work,
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you're saving on your tax bill now
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with that 401(k) account.
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So it probably makes sense from a,
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let's call it a tax
diversification standpoint
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to go ahead and bring a Roth into the mix
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to give you some tax savings later too.
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Question number two, all
right Jim, I like that man,
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I'm feeling you.
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So what's the best IRA investment?
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Ooh, another great question.
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But unfortunately, I am not
gonna have a great answer.
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That's because it's boring.
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It's unsexy.
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But just start with a
broad-based market index
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like SPY, and go from there, man.
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And lastly, question number three.
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All right man, this
pittance, this compensation
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you spoke of earlier, details please.
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Yeah man, I got you.
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Free E-book time baby.
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The Mystery Behind Motivation.
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You can grab this guy right down
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in the description totally free.
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It will get you all revved up
in both fitness and finance.
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It will have you ready to run
through a brick wall for both.
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And so for the record, I am
not going to be responsible
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for any bodily harm you
might do to yourself
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from said running through said brick wall
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because of inordinate
amounts of motivation.
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Hey, thank you guys.
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You know I appreciate you.
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You know I love you.
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You know it's more than just
a like thing now, right?
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It is a full-blown love at this point.
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If you wanna return some of that love,
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hit me with a like, a
share, and a subscribe,
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and stay with me because
earnings per share
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on common stock, coming up right now.
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