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
- Talking to aging parents about finances Expert Interview
- How are relationships affected by money?
- The emotions behind buying stuff
- Should you create a trust?
- Are hidden fees stealing your retirement?
- How do I make my spouse a tightwad?
- Tips for radical cost cutting
- Control your spending by using cash
- How investing style changes over your lifetime
- 5 poor ways to save (and how to do better)
- What to do if your credit card rate goes up
- 40-something and way behind on saving for retirement
- 5 big bills you can cut fast
- Money-saving secrets of the rich and frugal
- Reduce your debt with this free debt course by The Dollar Stretcher
- Reduce your debt payoff time
- Find a better credit card rate
- Get better savings & MMA rates