How Do You Open A Roth IRA Account?
There are many ways to save for retirement. One of the most flexible plans the government has created for this is the Roth IRA. Anyone can put up to $4,000 a year (if you’re over 50 the amount is higher) into a Roth IRA, and the sooner you start investing in one, the better off you’ll be come retirement. Unlike a 401K plan that has stiff penalties if you withdraw the money before retirement age, you can take out the money you have invested (but not the interest it has earned) at any time without penalty. If the investor waits until age 59 ½, the entire amount can be withdrawn without ever paying a penny in tax to the IRS. Roth IRAs are a smart investment. If you’re ready to start investing in this flexible account, and building your retirement funds, here’s what you need to do to open a Roth IRA. • Figure out where you are going to get the money. Not everyone has $4,000 sitting around waiting to invest. However, you don’t need to invest the entire $4,000 at once or even invest that muc
A Roth IRA account is an individual retirement account that’s an alternative to a traditional IRA. Unlike a traditional IRA, the funds grow in the account tax-free, and they can be withdrawn at any time penalty-free, but usually under special circumstances. Determine your eligibility. You must be an employee who makes an annual salary of less than $101 thousand if you’re single, or less than $169 thousand if you’re married filing jointly. Research where you want to house your funds, whether it’s the traditional brick-and-mortar bank, an online bank, a mutual fund company or a brokerage firm. Study the Roth IRA investment options, such as CDs, mutual funds, stocks, bonds or money market accounts. Compare a few banks online, and check for minimum deposit requirements, interest rates, fees and fund performance to see which company makes a good fit. Visit the branch or the website of the bank that you choose. Learn more information or ask questions, if necessary. Apply for the Roth IRA acc
