Why Should I Open A Roth IRA?
37376 POINTSview profileDavid G. Pipes, CLU®, RICP®Business Development Officer, T.D. McNeil Insurance Services, Fresno, CaliforniaAny step made to accumulate money for retirement is a step in the right direction. The money accumulated in a Roth IRA can be withdrawn after 5 years income tax free and without the additional 10% penalty tax if you are over 59.5 years old, have become disabled or are using the money for a first time home purchase. Additional advantages of a Roth IRA are that there will not be a minimum distribution required when you reach age 70.5, and there are superior estate tax opportunities.Answered on October 30, 2014flag this answer
21750 POINTSview profileJim WinklerCEO/Owner, Winkler Financial Group, Houston, TexasThat is a great question! There are several reasons why opening a Roth makes sense. The first is that the minimum distribution and withdrawal requirements are much less strict than in traditional IRA's, and can have beneficiaries to receive the balances when you pass. This type of IRA will allow you to take money out without penalties under the right circumstances where a traditional IRA won't. They are also great to have because they are not taxable income when you do start taking cash from them. The funding for your Roth is done after-tax, and the earnings are also tax favored, making this a great investment vehicle. I hope that helps, thanks for asking!Answered on November 3, 2014flag this answer
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