In this video, I'm talking about 4 excess Roth IRA contribution mistakes to avoid. Depending on when you fix it and which method you should you can change your taxes and potential penalties. ///////////////////////////////////////////////// Get answers FASTER... Join this channel to get access to perks: Chat on discord: Join Link Support on Patreon: Get IRS FORM W4 TAX WITHHOLDING HELP HERE ----------------------------------------------------- Are you ready for professional investment advice? We can help you with financial planning and asset management. Let us guide your investments to your financial freedom. START HERE Our financial planning process is an ongoing relationship because as you grow, your financial plan grows with you. At Sickle Hunter Financial Advisors, we believe that saving and making sound financial decisions will help improve your life’s changing needs and objectives. Retirement, college planning, wealth building, social security, and career benefit packets are only a few of the financial decisions that you may face in your lifetime and we’re here to help guide you. TRAVIS T SICKLE, CFP®, EA®, AAMS®, CRPC®, RICP® CERTIFIED FINANCIAL PLANNER™ Company Website: twitter: @travissickle Instagram: facebook: LinkedIn: Sickle Hunter Financial Advisors 1646 W Snow Ave. Suite 144 Tampa, FL 33606 ------------------------------------------------------- Gear Used in Videos Partnership referral links Solo 401k plan Documents Aura Identity Theft Protection *Up to 50% off* HTTPS://www.aura.com/travis Bitcoin IRA All Amazon links are affiliate links ____________________________________________________________________________ Information in this video is for educational and entertainment purposes only. sicklehunter.com/disclosures ____________________________________________________________________________ #travissickle...(read more)
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As a taxpayer, contributing to your retirement accounts is a great way to build your savings for the future. However, making excess contributions to your accounts can lead to significant tax penalties and even legal consequences. To avoid these mistakes, it's important to understand the rules surrounding contribution limits and to be aware of the mistakes that could land you in hot water with the IRS. Here are four common excess contribution mistakes to avoid: 1. Contribution Limits for IRA and Roth IRA Accounts IRAs and Roth IRA accounts each have contribution limits that are adjusted annually to keep up with inflation. In 2021, the contribution limit for IRAs is $6,000 for individuals under the age of 50 and $7,000 for those above 50 years old. The limits for Roth IRAs are the same. One of the biggest excess contribution mistakes you can make is not understanding these limits. If you contribute more than the limit in any given year, you risk being hit with a 6% penalty. This penalty applies for each year the excess contribution remains in the account, making it crucial to rectify the situation as soon as possible. 2. Contribution Limits for Employer-Sponsored Retirement Plans Employer-sponsored retirement plans, such as 401(k)s, have different contribution limits than IRAs and Roth IRAs. For example, in 2021, the contribution limit for 401(k)s is $19,500 for individuals under the age of 50 and $26,000 for those above 50 years old. A common mistake made by employees is contributing too much to their employer's retirement plan. If you exceed the annual limits set by the IRS, you could face penalties. 3. Contributions to Multiple Retirement Accounts Another mistake taxpayers make is contributing to multiple retirement accounts with different contribution limits. For example, you might have both an IRA and a 401(k) account. If you contribute the maximum amount to both accounts without taking into account the contribution limits, you could end up with excess contributions and face penalties. 4. Understanding the Tax Implications Excess contributions to retirement accounts not only result in potential penalties but can also lead to unwanted tax implications. For example, if you contribute to a traditional IRA and then withdraw funds before the age of 59 1/2, you could face a 10% early withdrawal penalty in addition to standard income tax. In conclusion, it's essential to understand the contribution limits for your retirement accounts and to be aware of the potential excess contribution mistakes that can lead to penalties and legal repercussions. By staying informed and keeping track of your contributions, you'll be on your way to building a solid retirement savings without running afoul of the IRS. https://inflationprotection.org/avoid-these-4-excess-contribution-mistakes/?feed_id=93115&_unique_id=644f28d034ef2 #Inflation #Retirement #GoldIRA #Wealth #Investing #correctivedistribution #excesscontributions #Netincomeattributable #ordinarydistribution #Recharacterization #RothIRA #rothiraovercontribution #rothovercontribution #travissickle #RothIRA #correctivedistribution #excesscontributions #Netincomeattributable #ordinarydistribution #Recharacterization #RothIRA #rothiraovercontribution #rothovercontribution #travissickle
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