For more than 20 years, Bob Bennie Wealth Management has helped high-net-worth individuals prepare for the future. Bob Bennie Wealth Management offers personalized advice on a variety of financial vehicles, including Roth Individual Retirement Accounts (Roth IRAs).
Roth IRAs offer a number of benefits to workers saving for retirement. The tax implications stand out as the best-known benefit. Roth IRAs allow account holders to withdraw funds tax-free during retirement. Interest compounds tax-free as well.
Roth IRAs are also flexible in terms of withdrawal. In general, withdrawals are available if the account holder is 59 1/2 years old or older and has held the account for more than five years. A number of circumstances, however, including a first-time home purchase or large medical bills, allow an account holder to withdraw from a Roth IRA principal without penalty.
While traditional IRAs require account holders to take minimum distributions starting at age 70 1/2, Roth IRAs do not require withdrawals at any time. The money in a Roth IRA can continue to grow as long as account holders leave it there, whether they withdraw the funds in retirement or leave it for heirs.
Although direct contributions to Roth IRAs are available only to savers who earn less than a certain amount, those who earn more than that amount may be able to save through standard IRAs. By putting money into a standard IRA and then converting it to a Roth IRA, high earners can still take advantage of tax-free accumulation and distribution.
Securities and Advisory Services offered through Prospera Financial Services, member FINRA/SIPC. This communication is strictly intended for individuals residing in the states of AK, AL, AZ, AR, CA, CT, FL, ID, IA, IL, IN, KS, KY, MN, NC, NE, NM, OH, OK, SD, TX, WA, and WY. No offers may be made or accepted from any resident outside these states.
