To Roth or not to Roth? That is the question. MadMoneyOnCNBC's JimCramer breaks down your retirement savings options.
, it does not matter how good an investor is at picking stocks. If the funds are kept in the wrong account, tons of money could be wasted in hidden fees and opportunity could be missed.
"I think that, aside from the earned income tax credit, the Roth IRA may be the single-greatest thing our government has done for low-income families since the end of the war on poverty, which at best, ended kind of in a draw [with] poverty possibly winning on points," thehost said. "If I were the king of the forest, I'd make the limits for the IRA investing the same as the ones for the 401.
With a Roth, contributions are made with after-tax income and the money in the Roth IRA will not be taxed again. There is also an income limit, depending on if you file joint or single. According to the IRS, contributions to traditional and Roth accounts cannot exceed $6,000 for individuals under age 50 and $7,000 for those over 50.
Another perk to a Roth IRA is that after five years, money contributed — not your gains — can be withdrawn without the usual 10 percent penalty. This is very different from a regular IRA, where there are no taxes on contributions until money is withdrawn.
Australia Latest News, Australia Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Jim Cramer: Chart analyst warns the S&P 500 is 'cruising for a bruising'Technical analysis Bob Moreno, who called the bottom in December, predicts the S&P 500 is on its way to plummet 10%, CNBC's Jim Cramer says.
Read more »
Everything Jim Cramer said about the stock market on 'Mad Money,' including China blacklist, Domino's earnings, S&P 500 forecast, Emerson Electric CEOIn Tuesday's 'Mad Money' episode, Jim Cramer derides the Trump administration's ban on Chinese companies, interviews Domino's CEO Ritch Allison after earnings and sees what's in store for the S&P 500.
Read more »
'Timing couldn't have been worse' for the Trump administration to issue bans on China, Jim Cramer says'I think you need to be very careful as this market readjusts and re-calibrates its expectations,' CNBC's Jim Cramer says.
Read more »
Employers Try a New Perk: Matching Student Loan Payments With 401(k) ContributionsMany workers with student loans postpone saving for retirement. Now, a handful of companies are trying to prevent them from falling behind on retirement savings by matching their student-loan repayments with contributions to a 401(k) plan.
Read more »
5 Shows to Binge While You Wait for New Episodes of “Riverdale”If you like Riverdale, give these shows a try!
Read more »