Roth IRA Explored

September 20th, 2010

Nest Egg ImageA Roth Individual Retirement Account (Roth IRA) is one of many retirement vehicles. You can make contributions to a Roth IRA account regardless of whether or not you contribute to a 401K plan or similar through work. Unlike a traditional IRA, you don’t receive a tax deduction for the money you contribute to your Roth IRA; however, you are able to withdraw money from a Roth IRA tax free during your retirement years. The maximum yearly contribution you can make to your Roth IRA is determined by the U.S. tax code – your tax professional or Fort Worth investment advisor can provide you with more detail.


What Are the Main Advantages of a Roth IRA?

When compared to the traditional IRA, the Roth IRA has a few potential advantages. These include the following:

  • Tax-free withdrawal when you are over 59.5 years of age and at least 5 years have passed since the Roth IRA was created.
  • No required minimum distributions. With a traditional IRA, you are forced to begin withdrawals when you reach 70.5 years of age.
  • Certain early distributions may be made without incurring early distribution penalties.

Is a Roth IRA Right For Me?

This is a question that is best answered by a professional. A high income level, for instance, may prevent one from participating in a Roth IRA. So, while Roth IRAs may benefit most people, it is important to have your Fort Worth retirement planning professional analyze your individual situation to determine the appropriate retirement savings strategy for you.

Share and Enjoy:
  • Digg
  • del.icio.us
  • Facebook
  • Google Bookmarks
  • Add to favorites
  • Live
  • StumbleUpon
  • Twitter
  • Yahoo! Buzz

Related posts:

  1. TOP 5 WAYS TO GET STARTED WITH A RETIREMENT PLAN
  2. Reducing the Stress of Taxes by Tax Planning
  3. FINANCIAL PLANNING RESOURCES FORMS
  4. Do you have a retirement plan?
  5. 401k Expanded Upon