Single Step Personal Finance Challenge- Roth IRA. Plus a Trifecta of Hundreds!


RC from Think Your Way to Wealth, tagged me with the Single Step Personal Finance Challenge” created by Mrs. Micah. The challenge is simple yet powerful – “Find one step you can take to make your financial system better or more organized.”

My single step personal finance challenge is going to be to open up a Roth IRA account this year. I have been reading about it a lot in a number of blogs and media lately and it sounds like a no brainer investment. I just need to get around to researching the best option for me and filling in the required paperwork.

A Roth IRA is basically a special type of Individual Retirement Account (IRA) that provides tax-free growth. Unlike a standard 401K or IRA account, you put money in after tax. However all your asset growth is tax free (if you hold if for 5 years+), but the real kicker is that all your withdrawals are tax free as well! So you don’t need to worry about changing or increased taxes when you retire. As a result, it’s the simplest – and potentially the most effective – sheltered account imaginable. That’s why there are some limitations with investing in it.

The Roth IRA contribution limit is $5000 (or $6000 if you 50+) and is adjusted based on your income. If you are married filing jointly you must earn less than $169,000 to be eligible for making any contributions. For single filers the top income limit is $116,000. You can get all the details and rules for a Roth IRA from this IRS publication. If you know of any more good information sources leave a comment with a link to the relevant article. I know I have to do more detailed research on the rules and investing options before I make the investment. Given the flexibility and substantial tax benefits, it is an investment I must make and that is why it is my single step personal finance challenge.

Thanks for the tag RC, and Mrs Micah for the concept. Paying it forward, I am going to tag some recent commenter’s from my blogroll: Curt from Penny Jobs, and the bloggers behind MoneyEnergy and pfstock. I also liked some of their recent articles so am going to tag the following others from my blogroll : Krystal from Give Me Back My Five Bucks, G Blogmaster at CAN I GET RICH ON A SALARY and the brains behind Trees Full of Money.

Trifecta of Hundreds milestone

After getting serious about this blog a few months ago by writing more frequently and participating more actively in the personal finance and investing blogosphere, I reached a few mini-milestones over the last week. 100 RSS readers, $100 in blog revenue for the month and 100 posts! Thanks to all the readers, fellow bloggers and Google (blogger and search) for making this possible!  [Update 2015] – I now have 10,000 readers, over 2K a month in revenue and over 1000 posts!

Leave a Reply

3 Comments on "Single Step Personal Finance Challenge- Roth IRA. Plus a Trifecta of Hundreds!"

[…] I know I spend about two hours a day doing blogging related work, especially as the blog continues to grow and I search for more content and marketing opportunities. I try balancing my real work (that pays […]

[…] – Aryn presents How to Withdraw from Your Roth IRA Tax Free posted at Sound Money Matters, saying, “Another reason the Roth IRA is awesome!” A good post for my One Step Financial challenge. […]

[…] Real Tax deductions that may surprise you ~ Single Step Personal Finance Challenge- Roth IRA ~ Why the fall in stock prices was good for your 401K ~ 401K […]


Previous post:

Next post:

Disclaimer: The information contained on Saving to Invest (this site) is for general information purposes only and does not constitute factual or professional financial advice. In accordance with FTC guidelines, we disclose that we may have a financial relationship with some of the merchants/companies mentioned on this website. We do our best to maintain current information, but due to the rapidly changing environment, some information may have changed since it was published. Please do the appropriate research before participating in any third party offers. Refer to the Privacy Policy and Terms of Use for more information