Ready to Open a Roth IRA
Knowing the benefits of a Roth IRA could mean you take a giant step toward retirement security. Should you open a Roth IRA account? Ponder this: taxes are on the rise , due to a weakened economy, big government spending and growing deficits. Most economists agree taxes are on the rise and will continue to increase for many years. Contributions to a Roth account are not tax deductible but the investments in the Roth grow in a tax free environment, and best of all – distributions from the account will be tax free. In coming years , with increased tax rates, retirees taking withdrawals from their Roth account will take them tax free, protected from all projected tax rate increases . The advantage to that element of the Roth account is major ! At age 59 ½, and after five years of seasoning, the Roth account can pay out disbursements to the owner. Traditional IRA plans require their account holders to start taking distributions no later than at age 70 ½. That regulation does not apply to a Roth account, so some account owners may choose to continue funding the account and letting their investment dollars grow indefinitely. In other cases, the individual could decide to leave the Roth account for their heirs, and that is also allowed. Like other IRA plans, the Roth has the special catch-up exemption for individuals over 50 years old that allows them to contribute an additional $1000 annually to their plan . People just getting started have an opportunity to grow their plan more quickly . When you open a Roth IRA choose the self directed Roth for better control over your investment options. You can then choose traditional investments like stocks and mutual funds, as well as less conventional options that will maintain their value in this economy – options including real estate and precious metals. The custodian with whom you open a Roth IRA should offer a variety of investment choices. Take the step to security for your retirement years: open a Roth IRA now.
