ROTH IRA for Self Employed (HOW TO GET STARTED TODAY) - YouTube

should you contribute to the Roth IRA if  you're self-employed or a small business owner  

you're going to want to stick around for the  answers to this question because I've specifically  

built this video just for you retirement saving  for retirement isn't always as straightforward  

as it seems so I'm going to go through the ins  and outs of the right Roth IRA and what might be  

a better alternative if you phase out or make too  much too much money with the Roth IRA hey I'm glad  

that you're here on this channel I share with you  my best certified financial professional in sight  

about money and investing I want to make your  life easy when it comes to money because really  

it should be easy to build your wealth know where  to put money how to implement the steps and get  

your money working for you i love this work  over 14 years of working self-employed people  

and small business owners to achieve financial  success and balance today we'll talk about the  

Roth IRA everything you need to know to understand  open and fund as well as invest your accounts  

the roth ira it's one of a kind people  love it for its tax free withdrawals  

here's how it works you put money into the  account it's tax today it grows tax-free  

and you take it out tax free it sounds  great but if you want a tax deduction  

on your tax return for the year that you  contribute you won't get it with the roth ira  

the roth ira is designed so that money is paid  the money that you earned taxes are paid today  

so that you can contribute and take money out  later tax-free on future withdrawals roth iras  

they are best when you think that your taxes will  be higher near retirement or during retirement  

and what would cause this a couple of things  you expect to be earning more money when you are  

working later in life or maybe you plan to work  past age 65 70 your taxes will be higher or you  

expect or anticipate a significant inheritance  which would also push up your tax bracket  

if you're thinking oh bummer i really  want to get that tax deduction this year  

and maybe you didn't earn as much income as you  did the year previous or you plan to make in the  

future the roth ira may be a really really great  choice for you and here's why it gives you choice  

during retirement years later down the road even  if you think i can only put a thousand dollars or  

a couple thousand dollars into a roth ira and  you qualify stay tuned you have to qualify to  

contribute to a roth ira i'm going to go over  that in just a minute roth iras are different  

than traditional iras because you don't have to  take money out of the roth ira you're not required  

with the traditional ira you're required to  take money out at age 72 it's also known as  

rmd required minimum distribution so the roth ira  definitely gives you more choice going towards  

retirement not everyone qualifies to contribute  to a roth ira if you make a certain amount of  

money or above that threshold you do not qualify  to contribute to a roth ira let's take a look  

at the contribution limits in 2021 you can make  the full contribution of six thousand dollars  

to a roth ira seven thousand dollars if you're  over age fifty your agi needs to be less than  

a hundred ninety eight thousand dollars if  your filing status is married filing jointly  

or less than 125 000 if your filing status  is single okay this is important the money  

that you can contribute to a roth ira or any  retirement account must come from earned income  

salary wages self-employment income if  you made four thousand dollars of earned  

income the maximum you can contribute is  four thousand dollars unemployment income  

does not qualify as earned income therefore cannot  be put into a retirement account this is really  

important after the pandemic a lot of folks did  receive unemployment income it does not qualify to  

be contributed to a roth ira or any retirement  account if you're a day trader and you've made  

profits on your investments that does not qualify  as earned income so investment income cannot be  

contributed uh to a retirement account or a roth  ira either if the roth ira sounds like it's a  

good fit for you let me know just by hitting that  like button and hang with me i'm going to share  

with you how to get your roth ira opened invested  today right here on this video i'm also going to  

give you my money expert tips to improving your  financial well-being so here we go let's jump  

right back into those roth iras when it comes  to money it's important to stay organized and  

consolidate your accounts when you can if you have  a roth 401k from a previous employer or roth ira  

ira over here and one over there it's hard to keep  track of them it's challenging to know if they're  

diversified i call this mental accounting when  we carry out accounts at various organizations so  

roth ira is unique that you can roll it over into  a single account like for like let's take a look  

here is how you can consolidate your roth  iras without any tax consequences or penalties  

roth ira to roth ira or roth 401k to a  solo roth 401k or raw 401k to roth ira  

don't get caught up in mental accounting by having  your accounts at various financial institutions  

it's not diversification it actually leads to more  confusion consolidate your accounts where you can  

now once you determine that a roth ira is right  for you it's time to get your money working for  

you that means once you contribute to a roth ira  you have to invest the funds that's how they grow  

you and i we probably have something in  common we're both busy running our businesses  

and don't have a ton of time to choose and pick  investments thankfully technology has made it  

really easy and i'm going to show you how to  invest your funds using technologies now most  

advisors aren't going to want me to tell you this  but it's an easy way to get your money working  

for you and it's diversified so let's take a look  schwab fidelity and vanguard all have diversified  

portfolios ready for you to use i'm most familiar  with schwab so i'm going to talk about that one  

and i'm going to walk you through the steps on how  to open your account and get the monies invested  

so you're going to want to go to  intelligentschwab.com this is how this works  

they're going to ask you a series of questions  on what your goals are for retirement or that  

objective you're going to go through this process  and based on that information they're going to  

provide a personalized portfolio based on your  risk and return potential so you're going to  

want to go through that step by step and that's  how you get started with a roth ira i've included  

a link below with more rules about the roth ira  and contribution limits that you should know if  

you want to learn about other retirement accounts  maybe there's something that might be better for  

you be sure to check out my video retirement plans  for self-employed if you're looking for more ways  

to succeed with money check out eight ways to  succeed as a self-employed woman it's packed  

full of guidance that will help you become  more profitable in business and wealthier if  

you found this video helpful be sure to like it  and subscribe to my channel here is my tip to  

improving financial well-being money loves clarity  money loves clarity so much that if you want more  

money in your life set up the account whether  it's a retirement account a goal to an account  

for travel that you want to do in the future  account for the kids whatever it is and start  

sending money to that account even if it's five  dollars even if it's ten dollars and you don't  

have the surplus right now start sending money to  it because when money is clear and what you want  

and you've set your intention it's more likely to  flow into your life that is a way to improve your  

financial well-being I hope you found it helpful  thanks for joining me here until next time be well  

you.