Traditional IRAs | Finance & Capital Markets | Khan Academy


Introduction to traditional IRA’s (Individual Retirement Accounts). Created by Sal Khan.

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Finance and capital markets on Khan Academy: The government apparently wants us to save for retirement (not always obvious because it also wants us to spend as much as possible to pump the economy going into the next election cycle). To encourage this, it has created some ways to save that avoid or defer taxes: IRAs and 401ks.

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  1. Are IRA balances part of net worth?


  3. How much is the penalty for early withdrawal?

  4. So now you are saying that it is better for a child to die than to grow up in a moderately poor home? how many children have you murdered because having a child would interfear with your lifestyle or retirement plans? when we started having kids, we had two incomes. perhaps you think I should murder my wife along with my children so I can save up a big fat retirement. You are a troll who only responded to my post so you could be derogatory. You never said anything helpful or constructive. I get the feeling you are an arrogant elitist bully who prefers to kill others rather than sacrefice yourself for others.

  5. why are ALL of these videos designed for people who make a lot of money? Is this even useful to those of us raising a family on $30-$50k and have no disposable income?

  6. only question is, what if you are a very large investor that set aside money, and then upon retirement your portfolio grows by way more than you got paid during your life. you would be in a higher tax bracket than during your working years meaning tax would be higher.

    say then you took the 20,000 out and pay now all in all like 35% because you take it close to 100k a year plus. but while working you were making less…wouldn't it make more sense in that situation to not do an IRA?

  7. In today's age, especially in most white collar jobs, I think the majority of people will be making much more at 60 than they do at say 30 or whenever they're starting their savings so it would be a better comparison to at least use the same tax bracket for each.

  8. What happens to the money if I die before 59 1/2?

  9. Just so you know… the limits are now $5500 and $6500 a year now.

  10. Wouldn't you need to also need to pay capital gains tax once you've withdraw from the IRA? 

  11. Sure, if you live in the part controlled by the government. But why would you do that?

  12. you hear wrong. Somalia has a tax rate of 35% on income.

  13. You can leave the country. I hear Somalia has no taxes.

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