Investors looking to save for the future often run into a dilemma when looking for a retirement account with tax advantages – do you open a Traditional IRA or a Roth IRA?
A recent article by Emily Brandon at U.S. News & World Report gives investors an inside look at the advantages of the Roth IRA in her article "
10 Reasons to Save for Retirement in a Roth IRA." The ability to contribute money after-tax and take tax-free distributions, essentially avoiding paying taxes on investment growth is the first reason stated.
While tax-free distributions (if the account holder qualifies) are the attention-getter, the rest of the list has additional compelling Roth IRA benefits, including:
-
Flexible withdrawal rules – no required minimum distributions as with the Traditional IRAs and the ability to withdraw contributions after 5 years.
-
Tax-free money to heirs – Beneficiaries can take tax-free withdrawals from an inherited Roth IRA.
-
No income limits on conversions – While there are limits on how much you can contribute each year to a Roth IRA, there is no limit on the amount you can convert from an existing account.
Those are just a few of the reasons –
read the entire article to get full details on the Roth IRA advantages.
Ready to get started with a Roth IRA or learn more about self-directed Roth IRAs? Set up a free, no-obligation IRA checkup with one of our Senior Account Executives.