Whether you know it or not, retirement is the biggest savings goal of your life. In order to succeed you need a plan that takes advantage of the tools available. Tools like a Roth IRA help thanks to its tax advantages. But is it a good fit for your retirement plan? This guide covers everything you need to know about the Roth IRA rules and more. If you want to be fully informed, I suggest you look over the traditional IRA rules too.
Why A Roth IRA?
The Roth IRA is a relatively new retirement account introduced back in 1997. The plan was to offer something different from the traditional IRA. To that end, it was a success.
The biggest difference is the Roth uses after tax income. The Roth IRA takes after tax dollars and allows for tax-free growth of that money. That means, the money you put in the IRA is already taxed, so it won’t be taxed when you take it out. In return, you lose the tax deduction you would get with a traditional IRA. Continue Reading…