Roth IRA Account
Are you concerned about increasing taxes in the future ? Most individuals are, and one of the best defenses in preserving your retirement money is the Roth IRA account. Government spending and increasing deficits have many tax experts agreeing that today’s top tax rate of 35% will be increasing dramatically over the next several years. In a Traditional IRA, the owner is required to start distributions at age 70 Â½ and must pay taxes on those distributions . With a Roth IRA account, contributions are not tax deductible as in a Traditional account , but the investments grow tax free and distributions are also tax free. That’s a huge benefit for owners of a Roth IRA account: tax free and penalty free access to your retirement funds as long as the account is seasoned for 5 years and the owner is 59 Â½ years old. There are no required minimum distributions. In fact, you are not required to take any distributions during your lifetime. So if you prefer to, you can pass along tax free wealth to your heirs through the Roth IRA account. There are qualifying factors that are income based to be eligible for a Roth IRA account. For single filers a modified adjusted gross income not to exceed $120,000 and for married filing jointly not to be more than $167,000. The yearly contribution is topped at $5000, with a catch-up exception of an additional $1000 annually for individuals over 50 years old . With a self directed Roth IRA account, you can be in control of your retirement destiny. You will make the important decisions for your account , from selecting the custodian to hold and manage the plan , to deciding on investments and allocating the assets to reach your goals and match your personal investment philosophy. You are not limited to traditional stocks and mutual funds, but could also invest in real estate or other options to accelerate growth of your retirement dollars. If you need to preserve your wealth and maintain your taxes at a legal minimum, look into the benefits of a Roth IRA account.