Jameson Van Houten and Stonegate Financial Group present the advantages of a Roth IRA
over a traditional IRA and discuss how individuals who earn high incomes can now take advantage of them.
9) There is also no mandatory distribution as there is for traditional IRAs, (10) so the beneficiary of the Roth IRA
may defer distributions to take further advantage of tax-free growth.
Imagine that beginning at age 40 you invest $5,500 of your post-tax income into a Roth IRA
Another client, Jamie, applied a self-directed account to a Roth IRA
he opened while finishing college.
The rules barring a Roth IRA
contribution or deduction for a traditional IRA contribution (i.
Due to the market adjustments of the past few years and the ability to defer--or never take--required minimum distributions (RMDs) from Roth IRAs
, there has been increased investor interest in Roth IRA
The Tax Court held on July 5 that the IRS properly assessed excise tax on a taxpayer's excess contribution to a Roth IRA
, since the attempted tax-free conversion of a regular IRA to a Roth IRA
lacked economic substance.
The biggest advantage of a Roth IRA
is that distributions can be tax-free.
He probably won't have to end his verse with, "Be all my sins remembered," (1) because a Roth IRA
can be recharacterized if done on a timely basis and in an appropriate manner (even if the sole purpose is to correct a mistake, or in Hamlet's case, to rectify a sin).
Future earning in a Roth IRA
will be fully tax-exempt, and investors can make future contributions to these tax-free accounts," said Massimo.
So if you've maxed out your 401(k) or 403(b) contributions and don't qualify to make Roth IRA
contributions because of your income level, you still can make nondeductible contributions to a traditional IRA in 2009 and 2010 and then convert it to a Roth IRA
While similar to a traditional IRA, a Roth IRA
distinguishes itself in that contributions aren't tax deductible and may be made after age 70.