Roth IRAs are best known for tax-free spending in retirement. What many don't know, however, is that if you make a mistake with a Roth IRA, you could end up owing taxes or a 10% penalty on some of your withdrawals.

In this video, we'll walk through how to avoid these Roth IRA tax traps. We'll cover the two 5-year rules of Roth IRAs, the ordering rules of withdrawals, the aggregation rule, and even the backdoor Roth IRA.
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Timestamps
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0:00 Roth IRA Tax Traps
1:51 3 Ways to add money to a Roth IRA
2:55 Contributions can always be withdrawn tax-free
3:24 No Penalty if 59.5 or older
3:57 The Aggregation Rule
4:54 5-Year Rule on Withdrawing Earnings
12:31 5-Year Rule on Roth IRA Conversions
17:50 Backdoor Roth IRAs & the 5-Year Rule on Conversions
21:43 Ordering Rules
32:50 Keep documentation

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Video Resources
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IRS Pub. 590-B: https://www.irs.gov/pub/irs-pdf/p590b...
FITaxGuy Article: https://fitaxguy.com/roth-ira-withdra...

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While still working as a trial attorney in the securities field, I started writing about personal finance and investing In 2007. In 2013 I started the Doughroller Money Podcast, which has been downloaded millions of times. Today I'm the Deputy Editor of Forbes Advisor, managing a growing team of editors and writers that produce content to help readers make the most of their money.

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