Why Start a Roth IRA?
An IRA is widely considered to be one of the best ways to save for retirement, after an employer-sponsored retirement plan such as a 401(k). People are living longer than ever, so your retirement savings may need to last you 30 years or more … and experts estimate that you will need at least 85 percent of your pre-retirement income just to maintain your current lifestyle. If you plan on moving to Hawaii, taking a round-the-world cruise, spoiling the grandkids or otherwise retiring in luxury, you will need even more. The benefits of a Roth IRA are that you: • Accumulate earnings on a tax-deferred basis • Withdraw earnings tax-free for qualified distributions In other words, when you invest in a Roth IRA, your contribution is not deductible from your taxable income. However, when it comes time to cash in your earnings upon retirement, you do not have to pay taxes on the money because, essentially, you did so when you first invested it. Further, with a Roth IRA, you can withdraw your co
