Roth IRAs


Some people find a roth IRA is the best choice. Roth IRAs offer the following advantages:

  • Tax structure - contributions are post-tax, but growth is tax-free. Once you put your money in, following a five-year holding period, you never pay taxes again. Since withdrawals are not reportable income, they won't affect your adjusted gross income during retirement.
  • Flexibility - since you have already paid taxes up front, there are no minimum distribution requirements.


IRA holders who are 50 or older by the end of the year can contribute an amount in excess of their annual contribution into a roth or traditional IRA as follows:

  • 2012: $1,000.00
  • 2013: $1,000.00

    The above information is provided for educational purposes and is not intended as tax advice. Please consult a tax professional.