Opening a ROTH IRA

Video Transcript

"This is Patrick Munro, answering the question, can I open a traditional IRA, with a lump sum cash deposit? The answer to that is yes and no. If you decide to put money in your IRA, and into the account, in one particular date and time, you can do so, but only up to the limit that you are allowed to, under your taxable rate, in that particular year. It's also important to note that it's not an unlimited amount, that you can place in, because obviously, it's designed to take the edge off the taxation, that you're facing, based on how much a year you make, so if you're a worker that makes twenty five thousand dollars a year. There's a certain limit that the government has said that you can place in to your IRA. It's not an unlimited amount. Some people choose to do it in a lump sum basis. However, it's better to do it on a monthly accrued basis, because those are small amounts of money that grow, tax deferred in the account, on a regular basis, and they grow even larger, going forward. This is Patrick Munro, answering the question, can I place a lump sum into my traditional IRA?"