A Look At The Roth IRA
Planning for retirement is a very important thing that you must do to secure those golden years financially. Most people have tons and tons of questions about that planning, as well as of the different types of retirement plans and accounts available to them. One of those choices if the Roth IRA. The Roth IRA, or Individual Retirement Account, is designed specifically for building the necessary funding for retirement. It offers a slew of benefits, including the chance to build your money with tax free growth and no tax deductions. To invest in a Roth IRA you must meet eligibility requirements, which includes income restrictions, age and contribution amounts.
Investing in a Roth IRA requires you to invest in stocks, bonds, mutual funds, market accounts, or similar. There are many things that you can invest with when holding an IRA, and it is always a good idea to weigh all of your options before making your selection. It is more than possible to use more than one type of investment if you so choose to do so. The biggest advantage of a Roth IRA is that you can open an account on your own. The 401(k), for example, is an employee sponsored plan. The Roth IRA can be set up at a bank, brokerage firm, etc. and requires no employer.
To be eligible to open the Roth IRA you must have a gross income of less than $105,000 if you have filed taxes single. If you have filed your return as a married couple, the yearly earnings should be less than $167,000. The amount that you can contribute to the Roth IRA each year is limited to $5000, although individuals who have opened their gold ira after the age of 50, or who have passed this age, can contribute another $1000 per year to the account. You can withdraw money from the Roth IRA at any time and without tax deductions.
Opening a Roth IRA is a smart idea for those who are serious about their financial future in retirement. It offers the chance to save a great deal of money in a short amount of time and enjoy tax-free growth, easy withdraws and so much more. It is a good idea to speak to a financial expert about the IRA and to consider this when retirement planning is on your mind. You will not be disappointed with what the Roth IRA can do for you.