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December 14, 2021

It’s Possible to Become an IRA Millionaire

By Jeremy Quittner

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Written by

Jeremy Quittner

Jeremy Quittner is the editorial director for Stash.

Investment advisory services offered by Stash Investments LLC, an SEC registered investment adviser. Investing involves risk and investments may lose value.

“Retirement Portfolio” is an IRA (Traditional or Roth) and is a non-discretionary managed account. Stash does not monitor whether a customer is eligible for a particular type of IRA, or a tax deduction, or if a reduced contribution limit applies to a customer. These are based on a customer’s individual circumstances. You should consult with a tax advisor. 

Roth IRA: Withdrawals of the money (Contributions) you put in are penalty and tax free. Prior to age 59½, withdrawals of interest and earnings are subject to income tax and a 10% penalty. All earnings are tax free at age 59½ or older, assuming your first contribution was more than 5 years prior. Income Eligibility applies.

Traditional IRA: Withdrawing prior to age 59½, generally means you’re subject to income tax and a 10% penalty. Withdrawals after age 59½ are only subject to income tax but no penalty.

While you can fund both an IRA and 401(k) in the same year, some income limits could apply.

¹Bloomberg.There Are More 401(k) and IRA Millionaires Than Ever (2021). Retrieved from https://www.bloomberg.com/news/articles/2021-08-19/ira-401k-millionaire-retirement-accounts-jump-75-to-record-at-fidelity?sref=Ggil5LTk

²CNBC. Number of 401(k) and IRA Millionaires Hits Record One Year After Covid, Fidelity Says. Retrieved from https://www.cnbc.com/2021/05/20/fidelity-number-of-401k-millionaires-hits-record-a-year-after-covid.html