The 6 Week Roth IRA Challenge – EP 381

Listen on Your Favorite Podcast Player

Investing doesn’t have to be complicated. In this episode, Jen and Jill break down the basics of Roth IRAs and why they’re a great option for saving for retirement. We also encourage everyone to take part in a 6-week challenge to contribute as much as possible to their 2023 Roth IRA before the tax deadline!

You don't get 2023 back. There are so few grace periods in life, right? And this is a grace period.


  • No fear. Sometimes people don’t invest because they’re afraid as soon as they tie that money up for 30+ years they’re going to need it. Well no fear here because we use Roth IRAs! You can withdraw your contributions to a Roth IRA at anytime for any reason! And after youve had the account for 5 years you can even withdraw the growth penalty free for certain things. If you want to have more of your saving fears debunked then get The Friendletter. We’re focusing on investing over the next 6 weeks. You’ll love it! 

Roth IRA vs. 401(k): What's The Difference?

This article by TIME Stamped takes a look at how Roth IRA and 401(k) operates, so you have a better idea of what might work for you.

What Jen + Jill have to say:

Jen and Jill explain that both accounts are government-backed to encourage retirement savings but have differences. Roth IRAs suit those comfortable paying taxes upfront, while 401(k)s are for those seeking immediate tax deductions. Jill further highlights the self-directed nature of Roth IRAs, emphasizing control and flexibility for users. They also talk about the limitations for Roth IRAs based on income and filing status, and the flexibility and withdrawal advantages of Roth IRAs, particularly within a five-year gap.

Jen and Jill recommend seeking advice from Certified Financial Planners (CFP) for a more informed decision on the Roth IRA vs. 401(k) debate.

Roth IRA Withdrawal Rules: What You Need to Know

This article by NerdWallet provides information on the withdrawal rules associated with Roth IRAs.

What Jen + Jill have to say:

Jen and Jill highlight the importance of understanding these rules and emphasize the flexibility of Roth IRAs compared to 401(k)s. They highlighted the tax implications of both accounts: 401(k) provides a tax benefit during contribution but is subject to income taxes upon withdrawal in retirement. In contrast, Roth IRA contributions are made with already taxed money, leading to tax-free withdrawals.

As the main point of discussion, Jen and Jill outlined several rules such as: earning withdrawal rules, exceptions for early withdrawals, withdrawal age and account ownership period, and withdrawal rules based on age and account age.

How much are you going to contribute to your Roth IRA?

Jill is going to contribute $1,000 for 2023, while Jen mentioned the possibility of maxing out, with a decision to be made in March, aiming for at least $3,000.

Bill of The Week

Thank you Serena for sharing your bill about getting the teacup for free!

Thanks so Much for Listening!

Thanks so much for listening. Many of you know we have a newsletter called The Friendletter that goes out 3x a week where we send out freebies, saving tips, and life hacks to help you save money. We want to give a shout out to this friend for replying to us this sweet email:

Thank you for the amazing free download.
I have never been able to complete a full month of a no spend challenge. I feel very encouraged and I’m excited to be doing this with y’all. Thank you for all that you do.

Thanks for listening! If you want freebies, saving tips, and values-based spending hacks sent to your inbox every week, head to to get the goodies! And if you already get the Friendletter, start sharing it with your friends to get more free goodies!

Keep leaving us reviews on iTunes or Stitcher, and sending the screenshot to And don’t forget to share your favorite quote from the episode by using the hashtag #FrugalFriendsNote. 😉

More To Explore