What is a Roth Individual Retirement Account (Roth IRA)?
A Roth IRA is a type of tax-preferred savings and investment account authorized by Internal Revenue Code section 408A. The Roth IRA allows you to accumulate assets for retirement purposes and for other purposes. A Roth IRA will produce tax-free income if certain rules are met. You or your beneficiary(ies) will not be required to include in income, for income tax purposes, a distribution paid from a Roth IRA, whether it be the return of a contribution or the accounts earnings, if certain rules are met. In some cases, you may be eligible to claim a tax credit because of your Roth IRA contribution. What is the basic concept of a Roth IRA, and what are the associated tax benefits? If you are eligible, you may make contributions, within limits, to the Roth IRA. You make these contributions with after-tax dollars. The earnings realized by the Roth IRA are not presently taxed, and if certain distribution rules are met, will never be taxed. You are not required to withdraw any distribution amo
