If you’ve considered all the options to saving your money for retirement. You may been looking to find that suitable place however I do have one suggestion for you the Roth IRA. In this article I’m going to cover the reasons why this this type retirement savings account is the best option.
The first thing that makes the Roth IRA account so great is because of the withdrawal policy. When your age 59 and a half you are allowed to take a Roth IRA withdrawal tax free. With a traditional IRA account you would have to pay ordinary income taxes on every dollar in the account. With A Roth you won’t have to pay one red cent.
Secondly, with a Roth account it allows you to grow your money tax free without ever having a tax penalty. This means you can place money in the account and if you receive huge gains in your account one year you’ll never have to pay a tax on it at all. With an IRA account you’ll again have to pay ordinary income taxes on ever penny you withdrawal from the account. As you can see be now why a Roth account is looking like a much better option but their is one more big reason why a Roth is still better.
Finally, with a Roth IRA account it let’s you pay taxes on your money upfront for your retirement. This may not sound like a great option at first but it will actually help you out big time in the long run. By paying your taxes up front you may be paying at a lower tax rate now while down the road taxes might be higher. On top of that your income level is usually less which means you won’t be in that big of a tax bracket and finally this also means you’ll be able to use other tax deductions like the interest on your home, and child tax deductions to cut down what you owe as well.
In end a Roth can be a great option however make sure you meet the Roth IRA qualifications before you get started and call your financial professional today to get started.
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