are always funded with after-tax dollars.
According to the court, the taxpayers' arrangement used abusive transactions designed to avoid the dollar limitations for contributions by the taxpayers to their respective Roth IRAs
9 percent of Roth IRAs
created in 2015 came from rollovers.
4 trillion in assets invested, traditional and Roth IRAs
are successfully meeting their dual mission as contributory savings vehicles and as a place to transfer or consolidate assets from employer-sponsored retirement plans," observes Sarah Holden, senior director of retirement and investor research at ICI.
Although the benefits of opening Roth IRAs
for your children are undeniable, there's a caveat that make this tricky: Children can only contribute to a Roth IRA
if they have declarable income; the money cannot come from a gift.
While more and more young workers are attracted to the benefits of Roth IRAs
, they should also be embracing Roth 401(k)s -- "supersized" Roths that allow workers to save more, says IRA expert Ed Slott.
It also does not apply to amounts rolled over from one IRA to another (assuming you follow the rules for rollovers), to conversions of traditional IRAs to Roth IRAs
, to amounts that the IRS levies from your IRA to cover your tax bill, or to qualified reservist distributions.
In addition to Roth IRAs
, Section 529 college savings plans also present some estate-planning benefits.
These accounts share a number of similarities with Roth IRAs
, such as the fact that amounts contributed are included in a client's income and future distributions can be tax-free if certain conditions are met.
In many respects, Roth IRAs
are similar to traditional IRAs; however, there are several significant differences.
While traditional IRAs are tax-deferred, Roth IRAs
are designed to be tax-exempt.
were established in 1997 as an alternative tax-deferred investment vehicle to traditional IRAs and pension plans.