When you are thinking about your retirement plan and how you are going to reach your goals, it is easy to overlook the Roth Individual Retirement Account (IRA). Potentially, the $6,000 or $7,000 cap on contributions or the income limitations of making a direct contribution may make it seem to not be worthwhile. We believe that the future planning power of a Roth IRA is more than worth the time it takes to make the contributions each year, even if multiple steps are involved.
A few of the benefits of a Roth IRA:
- Tax Free Growth which allows for more efficient tax planning in retirement
- Contributions (or conversion basis) able to be withdrawn without tax or penalty (5 Year Rules may apply so please talk with us before making a decision)
- No required distributions during your lifetime
If you are thinking of contributing directly to a Roth IRA or converting your traditional IRA, 401(K) or SEP into a Roth, please give us a call so we can discuss your overall plan and how a Roth IRA can fit into helping you achieve your goals.
