Today on the Finance Flash Go! podcast, the topic is Traditional IRAs!

A Traditional IRA or Individual Retirement Account is an investment account available to any individual.

You can contribute up to $6000 yearly (as of 2020) to a Traditional IRA. Money put into this account is not taxed. Again, the money grows and then is taxed upon withdrawal (when your effective tax rate is likely lower).

Money can be withdrawn without a 10% penalty beginning at age 70½.

The main issue with a Traditional IRA is that the initial tax deduction upon contributing money is phased out for individuals making more than $75,000 or married couples making more than $125,000 in 2020.

Physicians will be above this income limit and therefore, their contributions will be taxed twice – once at contribution and once at withdrawal!

Please enjoy the Finance Flash Go podcast! We plan to release a new episode every weekday answering important finance questions. If you ever want to submit a question to our podcast, send an e-mail to [email protected], and please be sure to check out Jordan Frey’s blog prudentplasticsurgeon.com where he gives great financial advice.

A brief disclaimer While we are providing knowledge and awareness around financial topics in this show, we are not held responsible for any financial decisions you choose to make in response to the podcast. We hope to provide accurate information in regards to money and different methods of wealth creation, but it is always the learner’s responsibility to due their due diligence before making important financial decisions.

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