This podcast is made by Ran Chen, who holds an EA license, Insurance and Securities licenses (Series 6, 63, 65), and CFP designation. He is passionate about opening up information to help everyone prepare better for financial certification exams. This episode covers content for the SIE Exam.

In this episode you will learn:

- Understand the fundamental tax difference: Traditional IRAs are pre-tax with taxable withdrawals, while Roth IRAs are post-tax with tax-free qualified withdrawals.

- Learn the 2024 IRA contribution limits, including the additional catch-up amount for individuals age 50 and over.

- Distinguish between Roth IRA income limits for contributions and Traditional IRA income limits for deductibility when covered by a workplace plan.

- Identify the 10% early withdrawal penalty before age 59 and a half and key exceptions like death, disability, and first-time home purchases.

- Grasp how withdrawals are taxed: the entire withdrawal from a deductible Traditional IRA is taxed as ordinary income, while only earnings from a non-qualified Roth withdrawal are taxed.

For more resources visit https://open-exam-prep.com/ and connect on LinkedIn at https://linkedin.com/in/chenran818