A Roth Individual Retirement Account (IRA) is a simple and effective way to start and fund your retirement years. Your money grows on a tax-free basis because after-tax dollars seed the account. Upon retirement, you can withdraw all earnings with no tax penalties. These are just a few ways Roth IRAs are different from traditional IRAs. We discuss a few others in this article.
Withdrawal Penalties
You can make early withdrawals on your Roth IRA contributions for any reason and without penalty. Since contributions are already taxed, this avoids future tax penalties. However, penalties exist for withdrawing investment earnings without a qualifying reason. Traditional IRAs include tax penalties for early withdrawal because contributions are tax-free.
Age Limits
Traditional IRAs require you to stop making contributions and begin withdrawals when you are over the age of 70. However, there are no such rules with Roth IRAs. You may contribute for as long as you would like with no age restrictions.
Setting Up a Roth IRA Account
It’s easy to start a new Roth IRA account. You first should identify a reputable and qualified firm among the many Roth IRA companies in business. Most offer simple online forms to complete that will set up your account(s) and begin contributions.
We are sets up and administers retirement accounts for individuals and small businesses. We specialize in Roth IRAs as well as many other retirement products. Visit our website to learn why we are a great choice among other Roth IRA companies.
