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Different Types of IRAs - Traditional, Roth, SEP, SIMPLE, and Self-Directed


-In this video I discuss the different types of IRAs (individual retirement arrangements / individual retirement accounts) available as defined by the IRS. There are a few key differences between these accounts, particularly as they relate to tax deductions and withdrawal restrictions over time. 🐽 LIKE & SUBSCRIBE for more related frugality & finance content 📱 insta @frugalityandfinance 🕰 tiktok @frugalityandfinance 🥟 buy me a boba - buymeacoffee.com/siuyee Earn $200 when you refi with Earnest - 👀 WATCH: Latest Debt & NW Update - Latest Budget With Me - Financial Freedom Template - $146,000 in Debt - Monthly Net Worth Tracker - 🎧 MUSIC: Song: LiQWYD - Call Me Music provided by Vlog No Copyright Music. Creative Commons - Attribution 3.0 Unported Video Link: Song: LiQWYD - Vacation (Vlog No Copyright Music) Music provided by Vlog No Copyright Music. Video Link: Song: LiQWYD - Flow (Vlog No Copyright Music) Music provided by Vlog No Copyright Music. Video Link: Song: MBB - Fresh (Vlog No Copyright Music) Music provided by Vlog No Copyright Music. Video Link: Song: MBB - Ibiza (Vlog No Copyright Music) Music provided by Vlog No Copyright Music. Video Link: Song: MusicbyAden - Bliss Music provided by Vlog No Copyright Music. Creative Commons - Attribution-ShareAlike 3.0 Unported Video Link: Song: Vendredi - All Night Long Music provided by Vlog No Copyright Music. Creative Commons - Attribution 3.0 Unported Video Link: [ Song: LiQWYD - Take Off Music provided by Vlog No Copyright Music. Creative Commons - Attribution 3.0 Unported Video Link:[ Song: Ikson - Paradise (Vlog No Copyright Music) Music promoted by Vlog No Copyright Music. Video Link: [ Song: InRp - Last Summer Music provided by Vlog No Copyright Music. Video Link: [ TAGS: #IRA #whatisanIRA #retirementaccount #savingforretirement #fire #firemovement 🕰 TIMESTAMPS: 00:00 intro 00:10 what is an IRA 00:30 traditional IRA 02:08 roth IRA 02:57 traditional/roth 03:27 SIMPLE IRA 04:25 SDIRA 04:39 SEP IRA 07:42 personal choice 08:00 which one do you like? Sources 📎 - - - - - - - ⚠️ DISCLAIMERS I am not a financial or tax professional. All content is made for entertainment purposes based on my own experiences and personal research into the topic. If you choose to use any information you learn from this video, it is to be used at your own risk and I am not to be held liable for the consequences of your choice or actions. I believe any reactions to copyrighted content falls under Fair Use. If original content owners would like to dispute this, request that the content be removed, or request credit for the content, please contact me at frugalityandfinance@gmail.com...(read more)


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Individual Retirement Accounts, or IRAs, are a popular way for individuals to save for retirement. IRAs offer tax benefits and can be opened at a number of financial institutions. However, there are several different types of IRAs and each one has its own unique features and advantages. In this article, we will explore the five main types of IRAs: Traditional, Roth, SEP, SIMPLE, and Self-Directed. 1. Traditional IRA A Traditional IRA is a tax-deferred investment account that allows individuals to contribute pre-tax dollars. This means that contributions made to a Traditional IRA will reduce an individual's taxable income for that year. In addition, any investment gains made within the account are tax-deferred until they are withdrawn at retirement age. Withdrawals from a Traditional IRA are taxed as ordinary income. 2. Roth IRA A Roth IRA is a post-tax investment account that allows individuals to contribute income that has already been taxed. Investment gains made within the account are tax-free and there are no taxes due when withdrawals are made in retirement. Contributions to a Roth IRA are not tax-deductible, but there is no age limit on contributions and there are no required minimum distributions. 3. SEP IRA A Simplified Employee Pension (SEP) IRA is a retirement savings plan for self-employed individuals or small business owners. Contributions to a SEP IRA are tax-deductible and the funds grow tax-deferred until withdrawn during retirement. Contributions to a SEP IRA can be made by the employer or the employee and the maximum contribution is much higher compared to a Traditional or Roth IRA. 4. SIMPLE IRA A Savings Incentive Match Plan for Employees (SIMPLE) IRA is a retirement savings plan available to small businesses with 100 or fewer employees. Contributions to a SIMPLE IRA are made on a pre-tax basis and the funds grow tax-deferred until withdrawn during retirement. SIMPLE IRAs are easier to set up and administer compared to a traditional 401(k) plan. 5. Self-Directed IRA A Self-Directed IRA is a type of IRA that allows individuals to invest in a wider range of assets, such as real estate, private equity, or cryptocurrencies. The account holder is responsible for selecting and managing the investments within the account. Self-Directed IRAs offer greater flexibility and control over investment choices but require the account holder to conduct thorough research before making any investment decisions. In conclusion, choosing the right type of IRA depends on an individual's financial goals, investment preferences, and employment status. It is important to consult with a financial advisor or tax professional before opening an IRA to ensure that it meets individual needs and aligns with retirement goals. https://inflationprotection.org/different-types-of-iras-traditional-roth-sep-simple-and-self-directed/?feed_id=93612&_unique_id=6451271546def #Inflation #Retirement #GoldIRA #Wealth #Investing #FinancialIndependenceRetireEarly #FIRE #FIREmovement #frugalityfinance #frugalityandfinance #individualretirementacc #ira #iraaccounts #iracontributionlimits #retirementinvesting #retirementsavings #RothIRA #rothirabenefits #sdira #selfdirectedira #selfdirectedirarealestate #sepira #simpleira #taxfreegrowth #traditionalIRA #traditionalorrothira #traditionalvsroth #typesofIRAs #whatisaselfdirectedira #WhatisanIRA #SimpleIRA #FinancialIndependenceRetireEarly #FIRE #FIREmovement #frugalityfinance #frugalityandfinance #individualretirementacc #ira #iraaccounts #iracontributionlimits #retirementinvesting #retirementsavings #RothIRA #rothirabenefits #sdira #selfdirectedira #selfdirectedirarealestate #sepira #simpleira #taxfreegrowth #traditionalIRA #traditionalorrothira #traditionalvsroth #typesofIRAs #whatisaselfdirectedira #WhatisanIRA
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