Investments: IRA & ROTH IRA 101

Master Teacher talks about IRA and ROTH IRA advantages. he also talks about the TSP for military. Any questions please ask. Also be advised it's really hard to cram all this info in a 10 min video which is the length i'm authorized at here on youtube. I can't go as deep as I would like to :-(

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Education

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• IRA

[materielgrrl]

Self employed can do a SEP IRA, however employers may offer 401(k) plans, like 401(k) & TSP which are called defined contribution plans & based on employment status, not income. You can contribute - directly from your pay before it's paid to you, & a whole lot more than IRA limits. Trad TSP/401(k)s allow immediate tax deferral on your contr & earnings; and MIGHT match what you put in. Roth 401(k)/TSP are after tax & if IRC rules met, earnings paid tax free after age 59.5. Devil is in details

[1MasterTeacher]

@materielgrrl thats for your contribution. sadly people just don't care as much for there retirement

[materielgrrl]

Yes, please keep reading. Saving for retirement is great if you know a few distinctions in what is out there so you don't get frustrated. IRAs, Roth or Trad are not employer sponsored. Trad IRA, if you meet IRC req allow you a tax DEDUCTION at tax time in tax income. Anyone working can contribute to an IRA; AGIncome will det if u get DEDUCTION; earnings grow tax deferred. Roth IRA is based on AGIncome, everyone can't do Roth IRA; earning grow & are tax free if taken after age 59.5 .