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you explain the ROTH IRA?
By The-Adviser.com -
- The Roth IRA is a non-deductible tax-free
IRA. It may be funded solely with after-tax or nondeductible
contributions. Currently, individuals who earn less than
$95,000 and married taxpayers who earn less than $150,000 can
contribute the maximum contribution. The following are the
key characteristics of the Roth IRA
Distributions from a Roth IRA are non-taxable if made at least five years after the first taxable year in which a contribution was made, or if after age 59 1/2, or after death, or on the account of disability, or for qualified first-home purchases.
In general, many financial advisers believe that for most persons, all new IRA contributions should go into a Roth IRA relative to a regular IRA. The difference is that withdrawals are tax-free rather than taxable (if the money has been in the account for five years and you are over 59 1/2 at the of withdrawal of if the money is used for qualified reasons). Regular IRA contributions are subject to the traditional IRA distribution. This is true even if you are allowed to deduct IRA contributions from your taxable income.
Eligibility for a ROTH IRA is based on annual gross income. An independent Fee-Only financial adviser can help you determine if a ROTH is appropriate for you.
ROTH IRAs allow money to grow TAX FREE
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