for roth ira i always want people to start earlier. example if you were to graduate from college and only do a roth i ra until 65 you would have $.1.7 million. when you pull that money out that's $1.7 million you have there is no tax. >> so you want too to keep all f your money. unlike other retirement accounts you do have access to the money in traditional you don't. >> at lot of people have their put money in there, but you're not very due diligence. all of the sudden there is nothing in there. with the roth ira we're putting money in every year, but you do have access to contributions at any time. so say, five years from now i needed access to my big lump sum of cash i can take money out of that roth ir my contribution not the growth or the interest. the contributions you can pull out at any time. should something happen that you need to pull that money out you can do it. >> you can do it. >> what about how long you can retirement accounts at age 70.5 you required to stop putting money in. >> correct. >> how does this differ or does

as it relates to a roth ira? >> for that with the traditional ira or a 401(k), the government is going to say age 70 and a half you have to pull that out. if you have about a million bucks, the government will say you have to take $40,000 because we want to get our taxes out of that. with a roth ira it is zero tax they don't make you take it out at 70 and a half. that's your money you already paid taxes they can't touch it. the taxes could go to 80% it doesn' no required minimum distribution at any age. >> correct. the nice thing when you take out money from a 401(k) or ira combined with social security benefits your social security benefits can be taxed. say you take $100,000 out of roth i ra and do social security you owe zero tax on your social security income. >> say you have a college student and let's say this college graduate was to max out his or her roth ira every year age 23, and put in $5,500 a year, what would they have when they turn 65. >> so for that if you take a college student and then when they

today - books paired with great gifts - we'll have ideas for every age. also the importance of roth ira's whether you are 25 or 65 at yesterday was sunny, windy and chilly with highs in the lower 20s and wind chills in the single digits. as the cold front got closer, clouds increased with a few overnight. the clouds are slowly clearing out, and this morning is partly cloudy with lows near 10 along the lake, and single digits inland. the wind is light, but wind chills are slightly below zero. today will be mostly sunny, breezy and cold with highs in the low to mid teens, and wind chills near 0. under a clear sky tonight, lows will be in the zero, with wind chills to -15. today a-t-f officials will release their findings, after investigating that deadly warehouse fire in oakland. the december 2nd fire at the so called "ghostship" warehouse killed 36 investigators still have not announced a cause for the fire. city officials admit the warehouse which was housing an art collective hasn't been inspected in nearly 30 years. the city's fire chief says budget cuts and hiring freezes hampered the

. >> caller: i hold some shares in my roth ira, since the split from alcoa, iconic received its first year with airbus but just last week, george issued both with accelerating. is icon ache good investment for the long-term. also would the new trump administration and with peak auto, what effects do you think this will have on the stock? >> okay, i that i deutsche just didn't like alcoa double a. they recommended taking profit because alcoa has been an incredibly hot stock since the split into two. i agree with that analysis. remember iconic owns 18% of aa and can sell within 60 day he of the deal. buying arsonic, we tell people that this is one of the cheapest stocks out there. they have business with boeing and airbus. they have business with ford f 150. they like weight the stock is too cheap and i that i one day it could be taken over. all right, nancy in california. nancy? >> caller: hi, jim, this is nancy from california. i'm concerned about cvs stock dropping versus wallgreen's and possibly how the new health care could -- the tank in new health care could affect pharmacy retai

what is this difference between a 457 plan or a roth ira and what are the pros and cons between the two plans. >> i'll have to ask you to check with your people at your pension plan the 457 deferred plan i'm not sure how that works and i can't cuff something here. it's too important i don't feel comfortable offering advice on that particular situation. >>> before you can think about nova scotiaing in stocks, pay off your credit card debt, get health and disability insurance then create a portfolio together. on "mad money" tonight, i want you to be diversified and the same applies for your 401(k). i'll show you how to balance your retirement plan. should you ever tinker with your contribution level? don't miss my take. the 401(k) isn't the only game in town. i'll tell you when it makes sense to add an iery to the mix. "mad money" will be right back. . th'shy i have the sparcash card from pital e. g making everdollar cou. with it, iarn unlimited 2% cashk on all of my puhasing. and that unlimited 2% ca backfrs thousands dollala each ye going ba into bess... which ds fuel to and that unlimi

you would tax either the savings upfront and not the returns, which we do with roth ira's and municipal bonds, or you would put the tax on the income, you would not put the tax on the income if you put it into saving, and that's a regular ira or pension or 401k and then tax it when you take it out. but all savings would get that treatment, not just the limited amount you have to take out by a certain time. no, all savings would get that treatment. the next step, businesses -- we have to start taxing the corporate earnings. businesses would get dividends or some way of integrating the either the business tax or the individual level, but not both. of the have to get rid estate tax. has paid tax, either when you first earned it and saved it or put it in investment and it earned more income, it was taxed again. even in an ira where you postponed the tax on the saving, eir pays tax on it. always double taxation for the estate tax. next, you need to get rid of that long depreciation life and create expensing so people get to deduct the full value of what they spent on the machine. not just so

you would tax either the saving upfront and not tax the returns, which we do with roth ira's and municipal bonds, or you would put the tax on the income when you first -- you would not put the tax on the income if you put it into saving. that's a regular ira, pension, or 401(k). then tax it when you take it out. but you taxed the original amount and the interest built up. all saving would get that treatment. not just limited amounts you take out by a certain time and follow certain rules on distributions. no. all saving would get that treatment. the next step, businesses need to stop double tax. -- we have to stop double taxing the corporate earnings. businesses get to duct the dividend or integrate the two systems so business is taxed at the business or individual level but not both. then we have to get rid of that estate tax. because that's an added layer of tax on income that's already been saved. every penny in an estate has been taxed, either when you first earned it and saved it or put it into an investment and it earned more income and was taxed again. even in an ira where you postp

would you tax the saving upfront and not tax the returns, which we do with roth iras and municipal bonds or you would put the tax on the income when you first -- you would not put the tax on the income if you put it into saving. that's a regular ira, pension or 401(k). then tax it when you take it out. but you taxed the original amount and interest built up. all saving would get that treatment. not just limited amounts you take out by a certain time and follow certain rules on distributions. no. all saving would get that treatment. the next step, businesses need to stop double tax. businesses get to duct the dividend or integrate the two systems so business is taxed at the business or individual level but not both. then we have to get rid of that estate tax. because that's an added layer of tax on income that's already been saved. every penny in an estate has been taxed, either when you first earned it and saved it or put it into an investment and it earned income and was taxed again. even in an ira where you postponed the tax on the saving, the heir has to start paying tax on it. it's b

would you tax the saving upfront and not tax the returns, which we do with roth iras and municipal bonds or you would put the tax on the income when you first -- you would not put the tax on the income if you put it into saving. that's a regular ira, pension or 401(k). then tax it when you take it out. but you taxed the original amount and interest built up. all saving would get that treatment. not just limited amounts you take out by a certain time and follow certain rules on distributions. no. all saving would get that treatment. the next step, businesses need to stop double tax. businesses get to duct the dividend or integrate the two systems so business is taxed at the business or individual level but not both. then we have to get rid of that estate tax. because that's an added layer of tax on income that's already been saved. every penny in an estate has been taxed, either when you first earned it and saved it or put it into an investment and it earned income and was taxed again. even in an ira where you postponed the tax on the saving, the heir has to start paying tax on it. it's b

you would tax either the saving up front and not tax the returns, which we do with roth ira's and municipal bonds, or you would put the tax on the income when you first -- you would not put the tax on the income if you put it into saving. that's a regular ira, pension, or 401(k). then tax it when you take it out. but you taxed the original amount and the interest built up. all saving would get that treatment. not just limited amounts you take out by a certain time and follow certain rules on distributions. no. all saving would get that treatment. the next step, businesses need to stop double tax. -- we have to stop double taxing the corporate earnings. businesses get to deduct the dividend or integrate the two systems so business is taxed at the business or individual level but not both. then we have to get rid of that estate tax. because that's an added layer of tax on income that's already been saved. every penny in an estate has been taxed, either when you first earned it and saved it or put it into an investment and it earned more income and was taxed again. even in an ira where you pos