Open a Roth IRA
Knowing the benefits of a Roth IRA could mean you take a giant step forward to retirement security. Should you open a Roth IRA account? Think of this: taxes are on the rise , due to a weakened economy, big government spending and growing deficits. Many economists agree taxes are on the rise and will continue to increase for many years. Contributions to a Roth account are not tax deductible but the investments in the Roth grow in a tax free environment, and best of all â€“ disbursements from the account will be tax free. In the future , with higher tax rates, retirees taking withdrawals from their Roth account will take them tax free, protected from all projected tax rate hikes . The advantage to that element of the Roth account is major ! At age 59 Â½, and after five years of seasoning, the Roth account can pay out disbursements to the owner. Traditional IRA plans require their account holders to start taking disbursements no later than at age 70 Â½. That rule does not apply to a Roth account, so some individuals may decide to continue funding the account and letting their investment dollars grow indefinitely. In other cases, the individual could decide to leave the Roth account for their heirs, and that is also allowed. Like other IRA plans, the Roth has a special catch-up exemption for individuals over 50 years of age that allows them to contribute an extra $1000 annually to their plan . People just getting started have an chance to fund their plan more quickly . When you open a Roth IRA choose the self directed Roth for more control over your investment options. You can then select traditional investments including stocks and mutual funds, as well as less conventional options that should maintain their value in this economy â€“ choices including real estate and precious metals. The custodian with whom you open a Roth IRA should provide a variety of investment choices. Take a big step to security for your retirement years: open a Roth IRA now.