Roth IRA Overview

Investing money in retirement is imperative for your future's well-being. Investing in your retirement will ensure you can live comfortably when you are no longer able or willing to work. But with so many different retirement accounts it can be hard to choose which retirement savings account works best. Whether it be a 401(k) offered by your employer, solo 401(k), 403(b), a traditional IRA, Roth IRA, you want to be sure you are maximizing your growth potential for the life of that retirement account. A Roth IRA combines the function of a traditional savings account but with unique benefits that set it apart from the others. So the question is, what is a Roth IRA?Start reading to discover the answer.

What Is A Roth IRA?

A Roth IRA (individual retirement account) is a retirement savings account in which individuals contribute their after-tax dollars. This means when they are ready or need to withdraw, they can collect their contributions (but not the earnings on the contributions) tax-free. Individuals can contribute their after-tax income at any age provided they are earning it from paid employment. Roth IRAs are great investments for those who believe the tax rate will have increased by the time they are ready to retire or need to withdraw from the account. They can also help some wealthier individuals who may want to leave a tax-free inheritance to their heir.

Continue reading to reveal precisely who is eligible to contribute to a Roth IRA now.