A Roth IRA, especially when self-directing, can be very powerful. Some assume they’re not able to qualify for a Roth, but anyone can open a Roth IRA. Quincy Long tells us more in this quick FlipNerd.com Expert Tip. Listen up!
Mike: Hey, it’s Mike Hambright from FlipNerd.com and we have a quick VIP tip to share with you from Quincy Long of Quest IRA who’s going to share advice on how anyone can have a Roth IRA.
Quincy: I always think this is a great topic because there’s multiple ways that you can have a Roth IRA. Everybody pretty much understands that when you have a Roth IRA, and you have qualified distributions, they’re-tax free and penalty-free, and who wouldn’t want to have tax-free, penalty-free money, or a pot of money to do.
So how do you get one? Well, the first way, of course, is by contributing money to the Roth IRA. Unfortunately, there are income limits to do that, but if you’re under those income limits you can contribute directly to a Roth IRA. More information about that can be seen at our website.
The second way to do it is through a Roth conversion. Many people don’t understand that. Almost anybody that has a former employer plan or a traditional IRA can convert that into a Roth IRA. Since 2010, it doesn’t even matter how much money you make, so you can make a billion dollars a year and still convert traditional IRA or a former employer plan into a Roth, and then have these tremendous tax benefits.
The third way that I would like to talk about briefly is inheritance. You can help someone that may be inclined to leave that IRA to you to set up their Roth IRA. And then when they pass, unfortunately that’s the bad part, then you can have an inherited Roth IRA. If you have an inherited Roth IRA that’s been seasoned, then actually you can have tax-free, penalty-free money for the rest of your life with no restrictions at all.
And those are three ways that almost anybody can get into one of those three ways to get a Roth IRA.
Mike: Awesome. That’s fantastic. Thank you for sharing.
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