Tax Tips: The Roth IRA
by Diane Halloway
The IRS has given us a free gift: the Roth IRA. Anyone eligible (adjusted gross income of less than $150,000) should consider starting a Roth. The younger you are, the greater a benefit you will realize from the tax-free growth. Also, you can get to your contribution without penalty for college education, the purchase of a home or any other need that might arise. There is no required distribution, which makes the Roth a great tool for estate planning. The Roth IRA can be invested in any bank, mutual fund or stock brokerage account. There are a number of web sites that offer details. Most mutual fund web sites even offer calculators that tell you how you would benefit from this type of investment, depending on variables like rate of return, age, etc.
Diane Halloway is a CPA who is also a Certified Financial Planner (CFP) and has been accredited by the AICPA (American Institute of Certified Public Accountants) as a Personal Financial Specialist (PFS), the only Financial Planning designation recognized by the AICPA. She also specializes in Long Term Care Insurance and has a tax/financial planning/LTC insurance practice in Houston, Texas. She can be reached at 281-486-7358 or DHalloway@aol.com
Share your thoughts about this article with the editor. Just Click Here and tell us what's on your mind.
Trending on TDS
- Will baby boomers have enough to retire?
- Should you use a financial planner for retirement?
- Every penny counts when paying down debt
- Cash management for an elderly parent
- 8 ways to make the most of your tax refund
- 9 ways to save on long-term care insurance
- 5 poor ways to save (and how to do better)
- Avoid these 10 common tax-filing mistakes
- 9 financial planning rules for women
- 8 things to put on your financial bucket list
- 5 big bills you can cut fast
- Money-saving secrets of the rich and frugal