Phantasm
Banned
This is a savings account for retirement that comes with special tax benefits. The money deposited into the account has already been taxed but qualified withdrawals are tax free after one retires. An individual under 50 can contribute $6,000 annually while those 50 and over can contribute as much as $7,000 annually as of 2022. Maximum contributions are determined by income limits. Withdrawal policy is flexible, allowing no penalty contributions at any point in time. The investment options include equities, fixed incomes, mixed funds and exchange traded funds (ETFs). Since RMDs do not have to be taken during the lifetime of the account holder, this allows for untaxed growth and heirs that could potentially inherit wealth through their parents’ generation without having any taxes levied upon it. Contribution by husband or wife is allowed thereby making Roth IRAs good tools for estate planning since they pass on to beneficiaries without being taxed. It’s important to consider your financial condition, tax bracketing expectations from one’s income earnings and retirement purposes before establishing a Roth IRA. In order to determine whether or not a Roth IRA would be right for you seek advice from a financial planner.
