Congress Wants To Ban Retirement | Roth IRA Under Attack
Published: 2021-07-16
Status:
Available
|
Analyzed
Published: 2021-07-16
Status:
Available
|
Analyzed
Predictions from this Video
Incorrect: 0
Prediction
Topic
Status
Roth IRA contribution limits for 2021 were $6,000 for individuals under 50 and $7,000 for those over 50, subject to income limitations.
"you're able to open up one of these accounts and deposit up to $6,000 a year if you're under the age of 50 if over the age of 50 you up to $7,000 a year as long as you fall within certain income brackets"
Pending
Profits within a Roth IRA can grow tax-free and be withdrawn without taxes upon reaching age 59 and a half.
"if you invest $6,000 in the account then it grows to $1,000 while in any other scenario you would be forced to pay taxes on that when you sell and that would be a bad time but in a roth ira you could have all of that profit completely tax free as long as you wait until the age of 59 and half and hopefully by then we're talking about a lot of money here completely tax free"
Pending
Contributions made to a Roth IRA can be withdrawn at any time without penalties or additional taxes.
"you're able to withdraw whatever money you contribute to that account at any point without any penalty without paying any additional tax"
Pending
A self-directed Roth IRA allows investment in various assets, including options and real estate.
"you're allowed to set up what's called a self-directed roth ira which means that you get to invest your money however you see fit if that includes buying 2023 gamestop call options for pennies on the dollar there you go in fact under certain conditions you can even invest in real estate within a roth ira"
Pending
Peter Thiel invested $2,000 in PayPal stock at $0.01 per share within his Roth IRA in 1999, acquiring 1.7 million shares.
"in 1999 he opened up a raw fire when he was 32 years old not making a lot of money and working for a tiny little company you may have heard of paypal he then invested $2000 of his own money to buy paypal stock at a value of 11 of 1 cent each giving a 1.7 million shares of paypal and is roth ira"
Pending
Peter Thiel's initial $2,000 investment in his Roth IRA reportedly grew to over $5 billion.
"he was able to turn that $2000 initial investment into now more than 5 billion within the account"
Pending
The strategy involves using a self-directed Roth IRA to purchase private company shares at low prices, aiming for IPOs or significant growth.
"all of this is done through the use of a self-directed roth ira buying up shares of private non companies at an insanely low price and then either ipo the company or growing it to the point where eventually you're a billionaire"
Pending
Congress is considering potential changes to Roth IRAs, including limiting contributions and reducing the tax-free amount.
"congress would move to ban and limit contributions that would place restrictions in terms of how much you're able to save and invest for retirement lower the amount that's considered tax free and therefore close the opportunities that stand to make some people a lot of money"
Pending
A proposed change to Roth IRAs would tax amounts exceeding a certain account balance threshold.
"the first one would limit the total amount of money that could be saved in tax preferred retirement accounts meaning once your account grows beyond a certain point anything beyond that threshold would be taxed as normal"
Pending
Congress is considering banning the use of Roth IRAs to invest in privately held companies.
"the second proposal would ban the purchase of privately held companies within a rot th which would eliminate the strategy that peter te used when he was making billions of dollars"
Pending
The Roth IRA contribution limits for 2021 were $6,000 for those under 50 and $7,000 for those over 50.
"as of 2021 you're limited to a contribution of $6,000 a year or $7,000 a year if you're older than 50"
Pending
The backdoor Roth IRA strategy involves contributing to a traditional IRA and then immediately converting it to a Roth IRA.
"thankfully there is something called the backdoor raa that you could use instead and this is done by contributing to a traditional ira first and then immediately converting that to a raw instantly"
Pending
The mega backdoor Roth IRA involves contributing to a traditional 401(k) and then converting it to a Roth 401(k).
"even better than that there's something called a mega backdoor roth ira which involves you contributing to a traditional 401k and then converting that over to a roth 401k"
Pending
The mega backdoor Roth IRA allows for tax-free growth on contributions up to $40,000 annually.
"by doing that you're able to contribute up to $40,000 a year that could grow tax free"
Pending
Access to private equity deals within a Roth IRA is restricted to accredited investors, defined as those earning over $150,000 annually or with a net worth exceeding $1 million.
"the only part of the story that is not available to the average American is the ability to purchase privately equity within a roth ira as an accredited investor meaning you either make over $150,000 a year or you have a net worth above a million dollars"
Pending
The speaker believes that access to private equity deals within a Roth IRA should be available to more Americans, similar to the ease of access to margin trading and options on platforms like Robinhood.
"personally i believe that if investors could get instant access to margin on robinhood or be able to trade options with little to no experience in a matter of minutes then they should be able to access private equity deals without a high barrier to entry"
Pending
The backdoor Roth IRA, which circumvents income limitations for high earners, is considered the most significant potential risk for elimination.
"the biggest risk right now to the roth ira is most likely going to be the elimination of the backdoor roth ira contribution which allows high income people to get around the income limitations"
Pending