ROTH - IRA

ROTH IRA Accounts

Different Buckets of Money for Retirement

What is a Roth Individual Retirement Account (IRA)?

An account dedicated to your retirement. You fund a Roth IRA with “after-tax” dollars, BUT YOU WILL NEVER PAY ANOTHER DOLLAR OF TAX ON THE CONTRIBUTIONS MADE OR THE GROWTH OF THE INVESTMENTS IN THE ACCOUNT. It is quite an extra-ordinary retirement tool.

Roth IRAs protect you against paying taxes at a higher rate in the future.

There are income limits for Roth IRAs in 2024 the limit is $144,000 and jointly it is $214,000.

Contributions are limited to $7,000 annually if you are under the age of 50, $8,000 if you are older.

You do not have to take Required Minimum Distributions with a Roth; you have already paid the taxes.

You must contribute earned income to a Roth. You may fund a spousal Roth IRA for someone that makes little or no income.