Jim Cramer: Roth Or Traditional Account? | Archives | CNBC

Mad Money's Jim Cramer breaks down the differences between traditional retirement methods and a Roth 401(k) or IRA. » Subscribe to CNBC: http://cnb.cx/SubscribeCNBC About CNBC: From 'Wall Street' to 'Main Street' to award winning original documentaries and Reality TV series, CNBC has you covered. Experience special sneak peeks of your favorite shows, exclusive video and more. Connect with CNBC News Online Get the latest news: http://www.cnbc.com Find CNBC News on Facebook: http://cnb.cx/LikeCNBC Follow CNBC News on Twitter: http://cnb.cx/FollowCNBC Follow CNBC News on Google+: http://cnb.cx/PlusCNBC Follow CNBC News on Instagram: http://cnb.cx/InstagramCNBC Jim Cramer: Roth or Traditional Account? | Archives | CNBC

Comments

1. making more money off pot than any stock pick in 30 years.....try 13,000 dollars a day !!!!!!!!
2. does the camera man need some pills for his ADHD?
3. Great advice
4. If the recent 2014 graduate is in the 28% tax bracket, this means one of 2 things: His income is at least $89,351 (single) or $148,851 (married) -- based on 2014 rates. The issue with doing a Traditional IRA, is that he is not eligible for a deduction. In either single or married cases, he is over the phaseout ranges. He can only do the Roth IRA (or do the Backdoor Roth using the Traditional as a conduit to do nondeductible conversions).
   
   He could do either one the following: 1) Traditional (& deductible) 401k & a Roth IRA; 2) Roth 401k & a Roth IRA; or 3) some blend of Trad/Roth 401k & a Roth IRA.
   
   2017 phaseout rates (for Deductible Traditional IRAs):
   Single: $62k-72k
   Married: $99k-119k
5. I have a TSP account. Should I put more in the TSP or the ROTH? They match up to 5%?
6. Jim Cramer says @ 3:25 "Roth ... after 5 years you can withdraw the money you've invested"
   
   Google Roth IRA contribution withdrawal without penalty lists:
   
   Investopedia: "Roth IRA contributions can be withdrawn at any time tax-free and penalty-free regardless of age."
   RothIRA: "If you are under 59½, you may withdraw the exact amount of your Roth IRA contributions with no penalties."
   Schwab: "You can withdraw contributions you made to your Roth IRA anytime, tax- and penalty-free."
   Forbes - A. Ebeling: "Roth IRAs...you can withdraw the amount you’ve contributed at any time penalty-free and tax-free."
   Money.CNN: "You may withdraw your contributions to a Roth IRA penalty-free at any time for any reason."
   H&R Block: "You've already paid tax on your Roth IRA contributions. So, you can withdraw your regular contributions at any time and at any age with no penalty or tax."
7. I have my Roth IRA with Vanguard VTI (total stock market) ETF and I reinvest the dividends.
8. Gives wrong info @ #:3:25 - "Roth ... after 5 years you can withdraw the money you've invested..." There is no 5 year wait for a penalty free withdrawal of contributions.
9. how much should one be contributing to a Roth IRA a month? any recommendations?
10. So, where the heck do I go to start shovelling cash into a roth IRA?
11. Why aren't we taking this kid's age into account? If he's right out of college he's got 30-40 years until retirement. At 8% per year 10,000 would turn into over $140,000 in 35 years. That's $130,000 of tax free growth. That's huge compared to a potential tax benefit of $2,800 today that you'd still have to pay tax on when it's withdrawn during retirement.
12. ROTH is my pick.
13. why does he talks like Russian?
14. Cramer said you can withdraw money, tax and penalty free AFTER 59.5 years of age.  how come everywhere else says "Direct contributions to a Roth IRA (principal) may be withdrawn tax and penalty-free at any time.[3] Earnings may be withdrawn tax and penalty-free after 5 years if the condition of age 59½ (or other qualifying condition) is also met. Rollover, converted (before age 59½) contributions held in a Roth IRA may be withdrawn tax and penalty-free after 5 years. Distributions from a Roth IRA do not increase Adjusted Gross Income. This differs from a traditional IRA, where all withdrawals are taxed as ordinary income, and a penalty applies for withdrawals before age 59½. (Even capital gains on stocks or other securities held in a regular taxable account–so long as they are held for at least a year–are generally treated more advantageously than traditional IRA withdrawals, being taxed not as Ordinary Income, but at the lower Long-Term Capital Gain rate.) This potentially higher tax rate for withdrawals of capital gains from a traditional IRA is a quid pro quo for the deduction taken against ordinary income when putting money into the IRA."Its seems that if I put 2000 in a ROTH IRA and I make 200 off of it, I can still at any point take out the 2000 tax and penalty free but the 200 would be taxed unless I am 59.5 years of age?
15. Jim's entertaining, and I really love watching and listening to him, but I recently learned since his program came on the air, cumulatively, he has not outperformed the S&P 500 index, by his picking (buying, holding and selling) individual stocks. And that's before considering the trading costs that come with buying and selling individual stocks, which would reduce his long term return even more. Boo ya!
16. lol retirement programs are scams. Why do you think the government keeps the interest rate too low for too long? It's to push you to the market. Buy high dividend stock with low forward multiple. You can easily outperform 401k losers WITHOUT waiting to 59 and 1/2. Wallstreet can change the rule any time. THEY OWN CONGRESS, wake up people.
17. Could they decide to tax the Roth later on? That'd obviously be theft but I mean.. could they not decide to just do that?
18. So what would the penalty be if I cashed out my Roth IRA to pay off my mortgage in 15 years.?????? I will be 48 years old
19. I appreciate you Jim!
20. truly good advice and helpful advice to make it simple for everyone