capital and finance markets

you might be retired you might be the lower tax brackets are going to pay lower taxes on it has been deferred for however many years your IRA has been in existence. This is especially interesting because over here you paid tax just on the original amount that you put in and then you allow that original amount to grow over many many many many years and then all of a sudden you’re not text at all so that all the sudden becomes a little bit interesting that seems like a pretty good thing to have and we’re going to play with the numbers to see how they work out the other interesting thing about the Rock is if you early withdrawal early withdrawal orally who withdraw for traditional IRA you pay 10% 10% penalty on the withdrawal plus you get taxed cut taxes on the Roth IRA if you’re just taking the original amount you put in and I’ll do this with a numerical example if you’re just taking out your principal amount no taxes or penalty on the principal no taxes or penalty penalty on principle on principle I’m still that badly Prince principal and you would only have to pay even  if it’s a non-qualified withdrawal there’s all these special circumstances what’s qualified and I’m not go to the details give me the only have to pay the 10% penalty 10% End taxes on earnings and taxes on earnings and one of main reasons why I’m not going all the details as one of make the video little confusing but also the government is constantly changing the details so I want this I want you to be able to watch the videos many years in the future and not to be dated so I don’t want to go into all of the different things that the government is changing from year to year but what’s add to a very basic example just to get the sense of things so let’s look at a traditional IRA traditional and then we have a row let me right Ira just to be clear they were talking about and I are in both the circumstances so let’s say my original income amount with have made more than $5,000 I’ll just use $5,000 as my example make another note is subject to more limitations in terms of your total overall income and also changing so I don’t want to be specific on the numbers you could look that up but there are ways that you can transfer traditional IRA into Roth IRA so that kind of a little bit of a loophole and being able to get around to some of those restrictions but I won’t go into the details just yet but remember there are some more limitations on whether or not you can put things into it but if you’re tricking you might be able to get around them so let’s say you have $5,000 it is a no the limits on Ira they apply to Roth or traditional or any