Know the Advantages of Owning a Roth

The Medford Tax Experts, Inc.

The Same Contribution

The same contribution limits exist for a Roth as for a traditional IRA, but there are tremendous advantages to owning a Roth. It is your first step toward getting rich slowly.

For more information, search Roth IRA or go to the IRS web page on Roth Accounts.

Reasons to Roth

Are you subject to 3.8% Medicare Tax, (NIIT)

  • Your Roth investment income is tax-free

Are you over age 72

  • Minimum Required Distributions do not apply
  • If still earning income, you can still contribute

Even Children can open a Roth

  • There is no age restriction on when you can open a Roth
  • If still earning income, you can still contribute

Consider an IRA Conversion

  • Pay the tax without using conversion money
  • Don't pay the tax penalty

What is Your Estate Plan

  • Your children can withdraw tax-free money for the rest of their lifetimes

You can withdraw contributions from your Roth --Tax-Free--

  • If Roth money is used to buy your first home, you may withdraw tax-free your contributions and up to $10,000 of the investment earnings.

Do you expect your taxable income to increase

  • Pay the tax at today's low-income tax rates and then draw the money tax-free

Reasons Not to Roth

Will the immediate tax savings from a tax-deductible IRA earn you more money than the future tax savings of a Roth?

--A Roth IRA uses your wages and savings to exchange a tax today that will avoid a tax tomorrow--
Before you decide, consult a certified financial planner.

The Medford Tax Experts, Inc.