Should I Open a Roth IRA?
Here are three tips to help you decide if a Roth IRA is right for you
When it comes to planning for retirement, it can be difficult to know what kind of plan would best suit your retirement needs. If you’ve ever wondered, “should I open a Roth IRA?” and you have had questions about the advantages of this type of retirement account, we have come up with three points that may help you determine whether a Roth IRA is right for you.
One of the biggest advantages of opening or converting to a Roth IRA is that the money in a Roth IRA has already been taxed. This means that any growth or earnings accrued in your account are free from federal taxes – and sometimes local and state taxes, too , as long as you wait 5 years before withdrawing from your account and you are over 59 1/2 years of age. Other conditions may apply.
You Can Continue to Contribute At Any Age
One of the advantages of a Roth IRA is that no matter how old you are, as long as you’re working, you will be able to continue to contribute to a Roth IRA.
No Minimum Distribution
One reason many people choose to convert or open a Roth IRA is that there are no required minimum distributions. That means that unlike a traditional IRA or many other employer-sponsored retirement accounts, you won’t be required to make a minimum distribution. As a result, you won’t be penalized if you miss one.
For more tips on how to retire well, see our advice in the retirement planning section. If you are still wondering if a Roth IRA is right for you, don’t hesitate to reach out to us and schedule a call with one of our fiduciary financial planners today.