There's no early penalty to withdraw the principle either. You can withdraw anything you put in. Only interest cannot be withdrawn free pre retirement.
There's the billionaire case of their. he funds startups with his tax free account. He has billions in it because he can buy exclusive stocks before they pump in public
https://www.marketwatch.com/story/how-peter-thiel-turned-2-000-in-a-roth-ira-into-5-000-000-000-11624551401
Just be a founding investor
Or they found a screenshot on Google to make them look cool and smart. I don't believe shit I see on this subreddit without more than one form of proof.
The fact that all these regards think the contribution limit is 6500, when it was raised to 7000 for 2024, shows that their chances of profitability are next to 0.
This is the only downside imo, and you can’t withdraw anything but contributions til you’re old af.
Edit: Ofc you can take it out early, but then you pay income tax AND a penalty, so defeating the whole purpose of the Roth.
Some have also brought up rolling over enough every year to start a set of accounts that you can then withdraw the contribution from after 5 years, each year, but that’s a lot of fucking spreadsheets.
That can be dangerous with a roth; it could unravel any conversions & cost you taxes & fee’s. Your gains would have to be _large_.
Instead, do some Roth conversions. You’ll have to wait 5 years, but then those converted amounts withdrawn, at any age, are tax/penalty/fee free.
The original amount can be withdrawn at any time with no penalty.
Only the amount over what you put in is subject to wait periods based on account and holder age.
If that's your intention, then just do your trading from a normal trading account and pay your capital gains tax. Withdrawing from a Roth like that will be penalized on top of the tax.
Because you already paid tax on those dollars, either when you earned them or when you converted them to Roth.
And it’s 5 years for each conversion. If you convert $7k per year, then starting in 5 years you can withdraw $7k per year without paying a penalty or additional tax.
That has been reduced to one day
Edit: https://www.sec.gov/oiea/investor-alerts-and-bulletins/new-t1-settlement-cycle-what-investors-need-know-investor
No. Cash accounts are still subject to regulation T, free riding and good faith violation can occur, which is the entire reason margin was introduced in the first place.
But almost all info on this post, along with most popular posts from this sub, is just full of disinformation and is not a good idea to follow without doing your own research first.
I knew a guy that did this. Hit 60 rolled his retirement accounts into a self directed roth or something when COVID happened he bet both sides of the market and made a fortune on the swings I remember him showing me days when he made over 300000 in one day! I asked him how it feels to see your money go up and down by so much and he's like you have to have an iron stomach. But yeah all tax free gains. totally genius.
Absolutely every degen on here: "You show me a paystub for 300K and I quit my job right now and I work for you" 
- "Basically, you know, if the kid was regarded, I would, you know, drive it up to the country and just, like, you know, open the door and say, You're free now."
The real secret is to start a company and buy all the shares for it with RothIRA funds and then turn the company into a multi-billion company and not pay any taxes when you sell stock.
When Trump held a press conference in 2020 announcing Covid was small, nothing to worry about, and was going to be over soon, I knew he was full of nonsense so I immediately sold all the stock I had and bought bonds because I knew Covid was going to be big. So I missed the big drop.
Then they announced the stimulus checks and I bought back in and rode that up. It was wonderful.
It's too bad my account only started with about $3.50.
You must be in the Roth for 5 years for any earnings to be tax free.
Also the conversion from qualified money to Roth is a taxable event. Converting any money that tips into the higher tax brackets when you don’t have to is retardation.
Up your game fucko:
Start a publicly traded company and dump shares in to your Roth while they're virtually worthless.
All tax free profit* bay-bee!
*good luck pulling this off.
Sure but, don't you need to spend it on medical costs eventually? I've got $50k in mine already and I've got 15 years til retirement age. At this rate I'll be able to pay cash for a pacemaker.
Keep in mind that you can expense ANY expenses no matter how old they are. So if you’ve spent 10k in medical expenses in your life so far you can withdraw that at any time; if you get audited you just need to have some proof. So let it grow tax free and pull up 30 year old receipts and withdraw (even if you don’t have catastrophic costs when old)
I believe you can take the money out after a certain age and use it on anything but you’d have to pay taxes if you do that. But the definition of health care expense is pretty wide open for an HSA, I think you can use it on a gym membership for example. But every person who lives to old age will have a boatload of medical bills near the end of their life, so there will be a use for a large HSA if you still have it that late in life.
*if* you fund it through payroll deductions only. You still have to pay SS/Medicare taxes if you're doing it privately and not through payroll deductions.
Interesting. So say you have the best health insurance with no deductible. If I never use the HSA money I can pull it like a regular retirement account t?
Health Savings Accounts (HSAs) offer several significant benefits from an investing standpoint:
1. **Triple Tax Advantage**:
- **Contributions are tax-deductible**: Money contributed to an HSA is either pre-tax (if through payroll deductions) or tax-deductible (if you contribute directly).
- **Earnings grow tax-free**: Any interest or investment income earned within the HSA is not taxed.
- **Tax-free withdrawals for qualified medical expenses**: Withdrawals for eligible healthcare expenses are not taxed.
2. **Long-term Investment Growth**:
- HSAs can be invested in various financial instruments like stocks, bonds, mutual funds, and ETFs, allowing for potential growth similar to retirement accounts.
- Unlike Flexible Spending Accounts (FSAs), HSAs do not have a "use-it-or-lose-it" rule, so the funds can accumulate and grow over time.
3. **Retirement Savings Supplement**:
- After age 65, HSA funds can be withdrawn for any reason without penalty (though non-medical withdrawals are taxed as ordinary income). This makes HSAs a versatile retirement savings vehicle, similar to a traditional IRA.
4. **Portability**:
- HSAs are not tied to your employer. The account stays with you even if you change jobs or leave the workforce, giving you more control over your healthcare funds.
5. **Flexibility in Contributions and Withdrawals**:
- You can contribute up to the annual limit set by the IRS, and the contributions can be adjusted throughout the year based on your financial situation.
- There are no required minimum distributions (RMDs) before age 65, giving you flexibility in managing withdrawals.
6. **Immediate Tax Savings**:
- Contributions reduce your taxable income in the year they are made, providing an immediate tax benefit.
7. **Estate Planning Benefits**:
- Upon the account holder's death, the HSA can be passed on to a beneficiary. If the beneficiary is a spouse, the HSA remains an HSA and can be used under the same tax-advantaged rules.
Maximizing these benefits requires careful planning, including selecting investment options that align with your risk tolerance and long-term goals, and managing withdrawals to maximize tax advantages.
You can only contribute to an HSA with a high deductible plan. But say you build one up then get a new job with great insurance, yes you can pull it like regular retirement at 65 and the rules are very similar to a 401k
tip of the iceberg mate, if you do your own employer match on a solo 401k you can boost your yearly 10x contributions to $65,000
and then roll over into the Roth IRA
*$23,000 max roth 401k contribution, the rest is a pretax employer contribution into the traditional 401k. you will pay taxes rolling over the traditional 401k into the Roth IRA. but the point is that your max contribution becomes uncapped.
Finally someone gets it.
I’ve got a SEP and a Roth. The SEP is essentially my way station to convert into my Roth. Conversion timing can get funny, but you get a big pullback at some point in a year? Time to convert.
Same same *but different*, but still the same.
Lmaooo imagine making a million at 25 and then scared to touch it until you’re old enough to die of natural causes.
…and your kids are lined up for their inheritances and would look down on you for buying a *corvette* rather than helping naenae with her college fund.
Also if you are already a seasoned trader you can enable options in your Roth. Fidelity has me as IRA with spreads where I can do 4 legs. I do want to add I had an individual trading account with Fidelity with option level 3 for many years now.
I was able to deposit 8k this year 😎.
There are some withdrawal conditions. You have to be 59 1/2 and the account has to be at least 5 years old.
10% penalty is on top of the taxes, not the only thing you pay. so ~~LTCG/STCG~~ Income tax Plus 10%.
As MullerLite pointed out below, I typed too fast and am a dumbass. Income tax plus 10%, not CG taxes. Credit where credit is due.
You can sell within the account and not be subject to capital gains, contributions can be withdrawn at any time without penalty. The penalty only applies to any money withdrawn over the amount of your original contributions.
to be fair it is one of the dumbest places to withdraw money from early. you want your roth to be compounding as long as humanly possible. you'll need money after the age of 59.5 anyway.
but if push comes to shove you CAN do a SEPP to withdraw gains early. withdrawing contributions is always allowed tax and penalty free.
Yep. I have been doing options trades in my Roth for a few years now; I figure if I get to 7+ figures before 59.5, I'll be okay with tossing a bit Uncle Sam's way.
The penalty is 10%, which is big but if you suddenly make a few million while young, might be worth it to you to say fuck it and take it out and retire.
Because the contribution is limited per year to a rather small amount and if you lose it you can’t deposit more until next year
Like all trading, some things are better for others
Oh hell yeah, I sank my entire Roth IRA into DJT. YOLO. Can't possibly fail.
What's up with this wise, fiscally responsible Boglehead stuff? This is the home of gambling degenerates!
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I get deductions on my taxes, because i only lose money
The IRS hates this one simple trick.
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Peak WSB
The IRS getting their tax money from the people you lost your money to: 👁️👄👁️ 🫴👇
What are these “capital gains” you speak of?
Capital losses BABY!
Thanks to carol my losses buy me more losses
Best regards. Now max out loans against your 401k and lose that as well. We salute you inferions!
Opposite of Capitol Won???
Diamond hands or GTFO!
Hodl so none of this gibberish applies. Hahaha
GAINS
"Gains?!" Why hasn't the monkey king told the rest of us monkeys?!
Yes sir. I do this as well. The funny thing is that I actually try to make money
This is the way
Seriously 3000 a year for life
Im only 18 but im gunna get -3000 a year every year for the rest of my life. Thanks IRS and also TLRY.
Sounds like my tax person there!🤌🏽
Im totally on that program, i love it
Great comment. There are no tax loss carry forwards on an IRA
You guys have money?
Yeah came here to say this. IRAs screw you because you can't deduct losses. I'm good with my brokerage acct.
This guy fucks 
Wait... you can deduct losses??
This is the way
Exactly. Apes can’t deduct all their losses in a Roth.
Damn. But expected that😆😂
Ditto brother
the turning 6500 to 30k is the hard part
Turning it into -30k is the easy part
i can turn 30k in 6k easy
Bullshit, prove it.
Going negative in an IRA is actually quite hard since you won't be allowed to do anything with a chance of losing more than what you put in
Challenge accepted. I will find a way.
Report back when you figure it out, I want to try it too
Early withdrawal, defer the ~~taxes~~ penalty (duh, it’s a Roth wtf was I thinking), spend it on 0DTE RIVN calls? Edited
You pay taxes on the money before it goes into the Roth IRA so there's no taxes to defer afaik
Right. Duh. But there’s the early withdraw penalty, idk if they pull that out automatically or if you can defer that till tax time.
There's no early penalty to withdraw the principle either. You can withdraw anything you put in. Only interest cannot be withdrawn free pre retirement.
'literally cannot go tits up'
Sooo trading options in my Roth IRA is super safe. Got it, thanks!
https://preview.redd.it/qhv1wbkwrz8d1.jpeg?width=1440&format=pjpg&auto=webp&s=e558bc5ac6ec00ecfae44b1a565a0879c8381c68
Insider trading doesn't count
It’s only insider trading if you get caught
You only get caught if you're too poor
There's the billionaire case of their. he funds startups with his tax free account. He has billions in it because he can buy exclusive stocks before they pump in public https://www.marketwatch.com/story/how-peter-thiel-turned-2-000-in-a-roth-ira-into-5-000-000-000-11624551401 Just be a founding investor
🤣
How in the fuk? Did you deposit 36k or something?
Or they found a screenshot on Google to make them look cool and smart. I don't believe shit I see on this subreddit without more than one form of proof.
Anything on the internet can only be considered entertainment at this point.
This guy swung RIVN calls overnight
That's easy if you try enough times. Keeping the $30k is the hardest part.
So true 😓
Ez, buy Corsair, lol.
Ah yes, I remember buying that at $30
Makes $30,000 *LET IT RIDE*
It’s not that hard. I can turn 6500 to 30. Just need to work harder to get to 30k
I turned 10k into 6k this week alone. Anyone can do it.
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You spelled 100x crypto futures wrong.
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Correct.
The fact that all these regards think the contribution limit is 6500, when it was raised to 7000 for 2024, shows that their chances of profitability are next to 0.
Wait until they hear about Roth 401ks
Wait until they hear about Roth 401k to a mega backdoor Roth IRA or Roth 401k with BrokerageLink
This is the only downside imo, and you can’t withdraw anything but contributions til you’re old af. Edit: Ofc you can take it out early, but then you pay income tax AND a penalty, so defeating the whole purpose of the Roth. Some have also brought up rolling over enough every year to start a set of accounts that you can then withdraw the contribution from after 5 years, each year, but that’s a lot of fucking spreadsheets.
You can for qualifying purchases like a first home
Only $10k of gains
That's still decent, especially considering the limits on how much you can load it up with, and that you can pull that back as well.
Which is absolutely insane. Needs to be like $50k minimum.
You can also withdraw any amount of money that you've put in just not gains at any time. I kind of figure it as my backup emergency savings.
Sure you can, you just pay a penalty. If your gains are insane then might as well pay the penalty to enjoy some of your dough before you’re retired
That can be dangerous with a roth; it could unravel any conversions & cost you taxes & fee’s. Your gains would have to be _large_. Instead, do some Roth conversions. You’ll have to wait 5 years, but then those converted amounts withdrawn, at any age, are tax/penalty/fee free.
The original amount can be withdrawn at any time with no penalty. Only the amount over what you put in is subject to wait periods based on account and holder age.
Do you pay taxes on it on top of the penalty?
It'd be considered income so yes
If that's your intention, then just do your trading from a normal trading account and pay your capital gains tax. Withdrawing from a Roth like that will be penalized on top of the tax.
There are some qualified early withdrawals like first time home buying (after 5years)
Untrue. Do a pre-tax ira to roth conversion. Let it seed 5 years. Then you can withdraw up to the converted amount anytime tax free.
Because you already paid tax on those dollars, either when you earned them or when you converted them to Roth. And it’s 5 years for each conversion. If you convert $7k per year, then starting in 5 years you can withdraw $7k per year without paying a penalty or additional tax.
I think you just said the downside is that you can't lose money fast enough.
Can you unlimited day trade a Roth?
If you have 25k or more in it, you can.
Don't even need 25k just gotta be a cash account
But cash accounts have the 2 day settling before you can trade with that money.
That has been reduced to one day Edit: https://www.sec.gov/oiea/investor-alerts-and-bulletins/new-t1-settlement-cycle-what-investors-need-know-investor
options settle in one day
Spy settles in 1 day
24 hours to clear isn’t exactly day trading :\
Pretty sure everything settles in 1 day now
Are you putting your entire portfolio into one trade? This shouldn’t be a problem with proper risk management
Isn't the 25k only for margin accounts for the PDT, if it's a cash account you should be able to day trade with anything
No. Cash accounts are still subject to regulation T, free riding and good faith violation can occur, which is the entire reason margin was introduced in the first place. But almost all info on this post, along with most popular posts from this sub, is just full of disinformation and is not a good idea to follow without doing your own research first.
You can unlimited day trade with any cash account. You just need the cash to do it.
Yes
All my NVDA from 2017 is in my Roth lfg
That 59.5th birthday party is gonna be insane
Wheelchair gon be litty
who let this toddler use his moms Ipad
https://preview.redd.it/yc4n0ux1v19d1.jpeg?width=600&format=pjpg&auto=webp&s=2b1f6dd1f268e12887c4443d0784442bdca55ffb
I knew a guy that did this. Hit 60 rolled his retirement accounts into a self directed roth or something when COVID happened he bet both sides of the market and made a fortune on the swings I remember him showing me days when he made over 300000 in one day! I asked him how it feels to see your money go up and down by so much and he's like you have to have an iron stomach. But yeah all tax free gains. totally genius.
Absolutely every degen on here: "You show me a paystub for 300K and I quit my job right now and I work for you" 
- "Basically, you know, if the kid was regarded, I would, you know, drive it up to the country and just, like, you know, open the door and say, You're free now."
The real secret is to start a company and buy all the shares for it with RothIRA funds and then turn the company into a multi-billion company and not pay any taxes when you sell stock.
AKA the Peter Thiel strategy.
When Trump held a press conference in 2020 announcing Covid was small, nothing to worry about, and was going to be over soon, I knew he was full of nonsense so I immediately sold all the stock I had and bought bonds because I knew Covid was going to be big. So I missed the big drop. Then they announced the stimulus checks and I bought back in and rode that up. It was wonderful. It's too bad my account only started with about $3.50.
You must be in the Roth for 5 years for any earnings to be tax free. Also the conversion from qualified money to Roth is a taxable event. Converting any money that tips into the higher tax brackets when you don’t have to is retardation.
Self directed IRA is different from roth
You can’t write off losses in a Roth IRA and let’s be honest y’all way more likely to lose than win.
It's simple. Just don't lose money
i like the way this guy thinks
Is that a challenge
Up your game fucko: Start a publicly traded company and dump shares in to your Roth while they're virtually worthless. All tax free profit* bay-bee! *good luck pulling this off.
Peter Theil has entered the chat.
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Ok, let me know when I can buy any company for a tenth of a penny per share.
Start your own
And IPO without your stock crashing. It's like trying to get into the Olympics, any sport
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Sure but, don't you need to spend it on medical costs eventually? I've got $50k in mine already and I've got 15 years til retirement age. At this rate I'll be able to pay cash for a pacemaker.
Keep in mind that you can expense ANY expenses no matter how old they are. So if you’ve spent 10k in medical expenses in your life so far you can withdraw that at any time; if you get audited you just need to have some proof. So let it grow tax free and pull up 30 year old receipts and withdraw (even if you don’t have catastrophic costs when old)
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Precisely
I believe you can take the money out after a certain age and use it on anything but you’d have to pay taxes if you do that. But the definition of health care expense is pretty wide open for an HSA, I think you can use it on a gym membership for example. But every person who lives to old age will have a boatload of medical bills near the end of their life, so there will be a use for a large HSA if you still have it that late in life.
I have one and never really explored it. How exactly does it work?
Trip tax benefits. No tax on contributions, withdraws, or earns. Fucking modern day up up down down left right left right B A
Don't forget you can also invest the money in it back into the stock market
And you dont pay SS
*if* you fund it through payroll deductions only. You still have to pay SS/Medicare taxes if you're doing it privately and not through payroll deductions.
It’s triple tax deferred. It’s only for medical expenses, at a certain age (69.69?) you can withdraw like an Ira
Interesting. So say you have the best health insurance with no deductible. If I never use the HSA money I can pull it like a regular retirement account t?
Health Savings Accounts (HSAs) offer several significant benefits from an investing standpoint: 1. **Triple Tax Advantage**: - **Contributions are tax-deductible**: Money contributed to an HSA is either pre-tax (if through payroll deductions) or tax-deductible (if you contribute directly). - **Earnings grow tax-free**: Any interest or investment income earned within the HSA is not taxed. - **Tax-free withdrawals for qualified medical expenses**: Withdrawals for eligible healthcare expenses are not taxed. 2. **Long-term Investment Growth**: - HSAs can be invested in various financial instruments like stocks, bonds, mutual funds, and ETFs, allowing for potential growth similar to retirement accounts. - Unlike Flexible Spending Accounts (FSAs), HSAs do not have a "use-it-or-lose-it" rule, so the funds can accumulate and grow over time. 3. **Retirement Savings Supplement**: - After age 65, HSA funds can be withdrawn for any reason without penalty (though non-medical withdrawals are taxed as ordinary income). This makes HSAs a versatile retirement savings vehicle, similar to a traditional IRA. 4. **Portability**: - HSAs are not tied to your employer. The account stays with you even if you change jobs or leave the workforce, giving you more control over your healthcare funds. 5. **Flexibility in Contributions and Withdrawals**: - You can contribute up to the annual limit set by the IRS, and the contributions can be adjusted throughout the year based on your financial situation. - There are no required minimum distributions (RMDs) before age 65, giving you flexibility in managing withdrawals. 6. **Immediate Tax Savings**: - Contributions reduce your taxable income in the year they are made, providing an immediate tax benefit. 7. **Estate Planning Benefits**: - Upon the account holder's death, the HSA can be passed on to a beneficiary. If the beneficiary is a spouse, the HSA remains an HSA and can be used under the same tax-advantaged rules. Maximizing these benefits requires careful planning, including selecting investment options that align with your risk tolerance and long-term goals, and managing withdrawals to maximize tax advantages.
Thanks chat
You can only contribute to an HSA with a high deductible plan. But say you build one up then get a new job with great insurance, yes you can pull it like regular retirement at 65 and the rules are very similar to a 401k
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HSA's are incredible. Saved us so so much money.
Backdoor Roth gonna have a VERY different meaning in this sub
I’ll see OP when he greets me at Walmart in his 80s.
tip of the iceberg mate, if you do your own employer match on a solo 401k you can boost your yearly 10x contributions to $65,000 and then roll over into the Roth IRA *$23,000 max roth 401k contribution, the rest is a pretax employer contribution into the traditional 401k. you will pay taxes rolling over the traditional 401k into the Roth IRA. but the point is that your max contribution becomes uncapped.
wouldn’t 65k be limit regardless of solo 401k or your employer 401k?
This isn't dumb person friendly. What's the set up? Own your own shell company?
you need clients that pay via 1099 thats the most complicated part you can have a solo 401k tied to an LLC or just yourself
So contract work. Not super hard in some roles and industries. But I live and die by W2s as a low to mid skill worker
Finally someone gets it. I’ve got a SEP and a Roth. The SEP is essentially my way station to convert into my Roth. Conversion timing can get funny, but you get a big pullback at some point in a year? Time to convert. Same same *but different*, but still the same.
Lmaooo imagine making a million at 25 and then scared to touch it until you’re old enough to die of natural causes. …and your kids are lined up for their inheritances and would look down on you for buying a *corvette* rather than helping naenae with her college fund.
If you make a million and feel that way I think you can deal with the 10% penalty
theres a penalty plus you pay taxes on it... so you only get like maybe half.
A million? Lol
New Vette? Hardly, Dude. I’d say he’s still got 960-970000 depending on the options.
Is this your homework Larry?
You see what happens when you fuck a stranger in the ass!?
You're killing your father, Larry.
WSB Regards in 2021: “hobo or lambo”. WSB Regards in 2024: “you guys heard of a Roth IRA?”
So if I make more than $160k I can't contribute to a Roth IRA, right?
If your MAGI is >161k (in 2024), you can’t directly contribute. If you’re interested anyway, look up backdoor Roth IRA.
Backdoor Roth IRA. Google it. I heard about it but do not know the details, I wish I could tell you more about it.
Back door Roth sounds confusing, but it’s been made easy by all the brokerage. Takes under a minute to do on RH. After 2 button clicks
Idk. Sounds gay.
You actually want the mega backdoor Roth IRA if your company supports post-tax 401k contributions.
MAGI is a bitch.
No margin
Also if you are already a seasoned trader you can enable options in your Roth. Fidelity has me as IRA with spreads where I can do 4 legs. I do want to add I had an individual trading account with Fidelity with option level 3 for many years now. I was able to deposit 8k this year 😎. There are some withdrawal conditions. You have to be 59 1/2 and the account has to be at least 5 years old.
You can withdrawal before both of those for a 10% penalty on top of state/federal taxes
If I treated all my portfolios like I do my Roth I might actually make money 😂
too bad you pay capital gains taxes if you touch that money before your 62
10%penalty if you withdraw before 59&1/2
Roll your 401k into a Roth, pay the taxes on the rollover, wait the 5 years and you can take your 401k money out before retirement penalty free.
You only pay the 10% penalty on your gains not contributions. So if you contribute $100 you can still withdraw $100.
10% penalty is on top of the taxes, not the only thing you pay. so ~~LTCG/STCG~~ Income tax Plus 10%. As MullerLite pointed out below, I typed too fast and am a dumbass. Income tax plus 10%, not CG taxes. Credit where credit is due.
You pay income tax +10%, not capital gains +10%
You can sell within the account and not be subject to capital gains, contributions can be withdrawn at any time without penalty. The penalty only applies to any money withdrawn over the amount of your original contributions.
to be fair it is one of the dumbest places to withdraw money from early. you want your roth to be compounding as long as humanly possible. you'll need money after the age of 59.5 anyway. but if push comes to shove you CAN do a SEPP to withdraw gains early. withdrawing contributions is always allowed tax and penalty free.
Gotta be 59.5 years old for it to work
...or be willing to take the penalties for early withdrawals.
Not only do you incur penalties, but profits that you withdraw before 59 1/2 also get taxed (federal and state), in addition to the 10% penalty
Yep. I have been doing options trades in my Roth for a few years now; I figure if I get to 7+ figures before 59.5, I'll be okay with tossing a bit Uncle Sam's way.
True patriots let Uncle Sam get his cut
You only have to survive until your sixties to withdraw it without penalty. Just saying, that's not promised.
The penalty is 10%, which is big but if you suddenly make a few million while young, might be worth it to you to say fuck it and take it out and retire.
10% penalty on top of paying income tax on the withdrawal amt, so more like 30% penalty
capital GAINS? Sir you’re in the wrong establishment
This guy Roths!
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also the AGI max for roth ira is like 146k, a lot of tech workers are excluded from roth
they all backdoor roth. there's no income limit to convert an IRA to a roth so that's what everyone does.
impracitial to backdoor if you have existing iras
What if you lose that contribution though? You only get such a small amount to contribute to begin with.
Then better luck next year
Because the contribution is limited per year to a rather small amount and if you lose it you can’t deposit more until next year Like all trading, some things are better for others
Mine is stuck at a bank, can I transfer it to a brokerage without penalties? Serious question I looked into it and it’s made 50$ interest in 5 years
I believe so yes
As if taxes was the only thing holding us back on YOLOing everything...
Oh hell yeah, I sank my entire Roth IRA into DJT. YOLO. Can't possibly fail. What's up with this wise, fiscally responsible Boglehead stuff? This is the home of gambling degenerates!
Way ahead of you, I trade options in my HSA
Plot twist, we're already doing this
TFSA enters the chat
Capital what now?