November 30, 2017

The Potential Benefits of a Roth IRA

Technology and globalization have changed the way people work. If not too long ago people had to follow to a 9 to 5 schedule and go to an office every day, now they can work from anywhere they want and on their own terms.

In today’s highly digitized world, freelancing is the new corporate.

But, as the workforce changes, so does the way people invest their money and plan for the future. Retirement for this generation and future generations may look very different in a few years.

This article will present and explain the benefits of Roth IRA. Don’t worry if you find the information too confusing. There are Roth IRA companies, such as Exemplify Financial that can help you throughout the process.

 

So, What Is Roth IRA?

Roth IRA is a retirement account plan for individuals with post-tax income.

One of the things that make Roth IRA an amazing investment tool is that all your future withdrawals are tax-free as long as you follow the rules.

Here’s a quick summary of some of the most important Roth IRA rules:

  • You may contribute to a Roth IRA as a single person but only if you make less than $133,000 per year;
  • The limit for married couples is $196,000;
  • People over the age of 50 can make annual direct contributions of $6,500. Those under 50 must contribute at least $5,500 per year.

All you need to open a new Roth IRA account is your current year’s income and a tax filing status.

 

The Main Benefits of a Roth IRA

  1.        People eligible for a Roth IRA get tax-free income in retirement;
  2.        Setting and maintaining an account is very easy;
  3.        You are never forced to withdraw money;
  4.        You can make withdrawals at any time without penalty or further taxes;
  5.        As long as you continue working after the retirement age, you can still make contributions to a Roth IRA
  6.        If you have ample accounts, you can leave your beneficiaries tax-free income;
  7.        People with high income who cannot contribute to a Roth IRA can make nondeductible contributions to a traditional IRA and then convert it to Roth IRA

Over time, Roth IRA can deliver great benefits for those in retirement. You just need to learn how to take full advantage of the benefits it can provide.

Looking for the best Roth IRA companies may feel like a daunting task, especially if you’re new to this and don’t know what you should pay attention to in the process. At Exemplify Financial, you can receive the support and guidance you need.

Don’t hesitate to get in touch with us.

 

Sources:
http://www.bankrate.com/finance/retirement/advantages-of-roth-iras-1.aspx
http://www.rothira.com/what-is-a-roth-ira
http://www.rothira.com/roth-ira-rules
http://exemplifyfinancial.com/

 

Get Your Free Consultation Today

Schedule an appointment to speak to one of our professional advisors.

Request More Information