Why A Roth IRA?
TThe Roth IRA provides a major benefit over any other form of retirement savings: If you meet certain requirements, all Roth IRA earnings are tax free when you or your beneficiary withdraws them. However, you won’t get a tax deduction when you contribute to the Roth IRA. Choosing a Roth IRA over a traditional IRA depends on your current situation and your future outlook:: • How long before you withdraw money from your IRA? • What will your tax bracket be? • What earnings can you anticipate in the interim? Effectively, a Roth IRA is larger than a traditional IRA because it holds after-tax dollars. If you can take advantage of the Roth IRA by maximizing your contributions now, you’ll gain greater tax leverage on your retirement savings later. There are two other significant advantages: since minimum distribution rules don’t apply, if you’re able to live on other resources after retirement and you don’t draw on your Roth IRA at age 70, your Roth earnings continue to grow, tax-free. • You
