You’ve heard us say before that you should be contributing to a Roth IRA, but what exactly is a Roth?! What’s so great about a Roth and is it better than a traditional IRA? In this Bestie episode, we revisit all the many reasons we’re such huge fans and why it is that you should be investing within a Roth IRA if you qualify. And one of the key reasons we wanted to get this episode back on your radar is because you still have time to make your contributions for last year! You have until May 17th before that window closes so make sure you make your 2020 contributions now!
Additional links from this episode:
- Open a Roth IRA with Vanguard, Fidelity, or our new favorite app M1. (and NOT the Robinhood app like we mistakenly mentioned!)
- If you wanted to check out Joel’s recent splurge, here’s a link to his bone conduction headphones which are awesome if you’re commuting to work and want to be aware of your surroundings!
- And with this being a Bestie episode from a couple years ago, we wanted to point out that the income limits for contributing to a Roth IRA have increased to 140k if you’re single (where the phase out begins at 125k) and 208k if you’re married (with the phase out beginning at 198k). Full IRS guidance here.
- And as great as they are, Roths aren’t the most tax advantaged accounts out there, that title belongs to the mighty HSA.
During this episode we enjoyed a Superior BarleyLime by tripelroot – a big thanks to Heather for donating this delicious beer to the show! And please help us to spread the word by letting friends and family know about How to Money! Hit the share button, subscribe if you’re not already a regular listener, and give us a quick review in Apple Podcasts or wherever you get your podcasts. Help us to change the conversation around personal finance and get more people doing smart things with their money!
Best friends out!