April 15 is coming up fast, and that means taxes. How would you like to have income at retirement that is totally free from taxes?
The Roth IRA is surprisingly simple. The idea is that your retirement savings will grow completely tax free. Most people know of it, but very few own a Roth or use it. According to the most recent Federal Reserve Survey of Consumer Finances, Roth IRA’s hold only 4% of all IRA assets.
Here are 5 reasons you should have a Roth.
1. Your money grows tax-free and won’t be taxed at withdrawal.
2. You can contribute any amount up to $5000 ($6000 if you are 50 or older.) If you can’t put
in $5000, figure out what you can afford, or set up a monthly contribution into your Roth.
3. Because of the tax free withdrawals at retirement, Roth IRAs are great for estate planning.
4. There are no required minimum distributions (RMDs) which you must take at age 70 ½,
unlike a traditional IRA.
5. There is a variety of investments available which you can use within your Roth. It is best to
meet with an advisor to figure out what your income needs will be when you retire, and which
investments are right for you.
Please contact me today to learn more about Roth IRAs.