5 Reasons to Open a Roth IRA

What is a Roth IRA?

A Roth IRA is a retirement account that helps you maximize your retirement goals. Below I will give you 5 reasons to open a Roth IRA.

The Best 5 Reasons to Open a Roth IRA

1. Your money gets to grow tax free, that includes dividends and capital gains.
2. You can leave the money in your Roth IRA for as long as you live. In other words there are no required distributions at age 70 1/2.
3. There is no minimum age to open a Roth IRA. All you need is taxable income. Parents can open a custodial Roth IRA for a child that earns taxable income. For example if your child mows lawns to earn extra money or models, that’s taxable income.
4. One of the best things about a Roth IRA is that it doesn’t have to be tied to an employers retirement plan like a 401K. A 401K must be offered to you by your employer therefore you can pick the investments that go inside of your IRA such as an ETF, Mutual Fund or individual stocks.
5. The best reason to open a Roth IRA is that there is no lengthy paperwork to complete if you change or leave your job.

There are Income limits to a Roth IRA.

The maximum income for a single individuals is $139,000.00 for married couples the maximum income is $206,000.00. If you have a Roth IRA retirement account that you’d like to rollover into another account. The account being rollover must also be a Roth IRA. You’ll have 60 days from the date of distribution to deposit the funds into your Roth IRA.

You can view more information on www.irs.gov.

Please consult with a professional advisor before investing. We are not financial advisors, we are your financial friends.