Roth IRAs: Introduction
The Roth Individual Retirement Account (Roth IRA) is a retirement saving account to which individuals can make contributions with funds that have already been taxed. As a result, contributions are not deductible. Given this....
Why Establish a Roth IRA?
The reward comes at the other end of the process, which is what makes the Roth IRA an excellent supplement to an individual’s retirement nest egg. It accrues earnings on a tax-deferred basis. Even better, distributions of these earnings amounts are tax free if certain requirements are met. For Roth IRAs, contributions are not tax deductible but qualified distributions are tax free. Contributions to the Roth IRA are discretionary, so individuals can choose each year whether and when they want to fund their Roth IRA. Better still: A Roth IRA has no required minimum distributions in the account holder's lifetime.
Here we look at the Roth IRA: How it works, how to set up one and how distributions are taxed.Roth IRAs: Eligibility Requirements