Hot topic alert! Today on the Finance Flash Go! podcast, we’ll be discussing the Roth IRA!

The Roth IRA is named after Senator William Roth who introduced the concept.

With a Roth IRA, your money is taxed at the time of contribution. The money then grows tax-free and is NOT taxed upon withdrawal. The contribution limit in 2020 is $6000 and the general rule for age of withdrawal without penalty is 59½.

Ok, here’s the kicker…there is an income limit to be allowed to contribute to a Roth IRA. The income limit in 2020 is $139,000 for individuals and $206,000 for married couples. Most physicians will again be above these limits.

With that being said, there IS a way for high income earners to contribute to a Roth IRA. It is colloquially called a Backdoor Roth IRA.

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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