————————————————————————————————————————
What is a Roth IRA?
Do I qualify to open a Roth IRA?
How do I open a Roth IRA?
Is there a set date that you must begin withdrawls?
What is a Roth IRA?
A Roth IRA is an investment account that has certian advantages and disadvantages for retirement saving. A Roth IRA is an individual retirement account, that is recognized by the Internal Revenue Service to have specific requirements and tax laws tied to it. Money put in this account has already been taxed as income, therefore when you retire you pay no taxes on withdrawls.
Do I qualify to open a Roth IRA?
You must have an adjusted gross income (AGI) of less than $110,000 if you are single and less than $160,000 if married. There is also an income rule that you cannot contribute more to a Roth IRA than you made for the year. For example if you only had an income of $2,000 you can only contribute $2,000 to a Roth IRA.
Is there a set date that you must being withdrawls?
A Roth IRA allows you to contribute for as long as you’d like. There is no set withdrawl date, like with a traditional IRA where you must start withdrawls at 70 1/2 years old. In fact, you can leave your money in a Roth IRA as inheritance for your children, with no intention of ever using it for yourself. This is a great way to pass money on to your heirs as there is no penalty to a beneficiary who inherits a Roth IRA. They may either withdrawl it tax-free or can continue to grow it tax-free.
