{"id":169034,"date":"2025-09-25T19:50:11","date_gmt":"2025-09-25T19:50:11","guid":{"rendered":"https:\/\/www.newsbeep.com\/ca\/169034\/"},"modified":"2025-09-25T19:50:11","modified_gmt":"2025-09-25T19:50:11","slug":"people-always-regret-doing-these-5-things-with-their-ira","status":"publish","type":"post","link":"https:\/\/www.newsbeep.com\/ca\/169034\/","title":{"rendered":"People Always Regret Doing These 5 Things With Their IRA"},"content":{"rendered":"\n

Individual retirement accounts<\/a> (IRAs) are one of the most popular ways to save for retirement<\/a>. Opening one and making contributions can feel like you\u2019re on the right track to securing your future. However, many people discover later that simply setting up an IRA isn\u2019t enough and small missteps along the way can lead to costly regrets.<\/p>\n

See Next: I\u2019m a Financial Expert: This is the No. 1 Mistake Americans Make With Their Roth IRAs<\/a><\/p>\n

For You: 6 Hybrid Vehicles To Stay Away From in Retirement<\/a><\/p>\n

GOBankingRates spoke to Jay Zigmont, financial advisor and founder of Childfree Trust<\/a>, who shared the below five things people often regret doing with their IRA.<\/p>\n

Also here\u2019s a big retirement myth that could ruin your plans.<\/a><\/p>\n

The first mistake often happens right after funding an IRA. Many people think once the money is in the account, that\u2019s it.<\/p>\n

\u201cThe biggest thing people regret with their IRA is not investing it,\u201d Zigmont said. \u201cThe first step is to fund your IRA, which involves depositing money into it. Then you actually need to invest it in the market. If you put your money in your IRA but don\u2019t invest it, it won\u2019t grow.\u201d<\/p>\n

Your IRA gives you access to stocks, index funds, ETFs and mutual funds. And if your goal is to make your money work for you, then invest the money you contribute.<\/p>\n

Check Out: \u2018You\u2019ll Run Out of Money in 20 Years\u2019 \u2014 Why Retirees Are Rethinking Their Savings Strategy<\/a><\/p>\n

Life happens. Whether it\u2019s a sudden job loss or an unexpected expense, withdrawing from your IRA before retirement is a costly mistake.<\/p>\n

\u201cWhen you withdraw before 59 and a half, you will have to pay a 10% penalty and taxes on the withdrawal,\u201d Zigmont said. \u201cThe point of an IRA is to be there when you retire. During tough times it can be tempting to withdraw from your IRA<\/a> to make ends meet.\u201d<\/p>\n

Pulling money early not only shrinks your retirement savings but also costs you in penalties and lost compound growth.<\/p>\n

Not everyone can freely contribute to a Roth or traditional IRA. If your income is too high, you may not qualify, or you may only be allowed to contribute a reduced amount.<\/p>\n

\u201cIt is essential to know that you must both have earned income and not exceed the limit before contributing to your IRA. There are income limits for both Roth IRAs<\/a> and traditional IRAs, depending on whether you are covered by a 401(k),\u201d Zigmont explained.<\/p>\n

A backdoor Roth IRA<\/a> can be a great way to get around income limits, but it\u2019s not simple. \u201cMaking a backdoor Roth contribution when you are over the income limit requires detailed steps and tax filings that are often overlooked. Backdoor Roth contributions are popular but can be complicated, especially when filing the IRS Form 8606,\u201d Zigmont said. Even small errors can trigger unexpected taxes, so it\u2019s best to work with a professional if you\u2019re unsure.<\/p>\n","protected":false},"excerpt":{"rendered":"Individual retirement accounts (IRAs) are one of the most popular ways to save for retirement. Opening one and…\n","protected":false},"author":2,"featured_media":169035,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[14],"tags":[45,49,48,133,43581,87085,131,132,56183],"class_list":{"0":"post-169034","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-personal-finance","8":"tag-business","9":"tag-ca","10":"tag-canada","11":"tag-finance","12":"tag-individual-retirement-accounts","13":"tag-jay-zigmont","14":"tag-personal-finance","15":"tag-personalfinance","16":"tag-roth-iras"},"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/posts\/169034","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/comments?post=169034"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/posts\/169034\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/media\/169035"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/media?parent=169034"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/categories?post=169034"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/tags?post=169034"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}