Friday, March 21, 2014
Roth IRAs are a great way to boost retirement savings and lower taxes. And tax-free growth potential and tax-free withdrawals aren’t the only benefits. Here are three others:
- Use contribution dollars any time. Roth IRAs enable you to take out contributions at any time and for any reason with no taxes or penalties.
- No required minimum distributions. Roth IRAs give you peace of mind knowing you won’t have to worry about RMDs that result in taxable income and a hefty penalty if not taken.
- Tax-free money for heirs. Roth IRAs can potentially grow larger over the years and be passed on to your heirs. However, you should first consider how it would affect their taxes.
See Nicole Seghetti, 3 Enticing (Yet Lesser-Known) Reasons to Consider a Roth IRA, The Motley Fool, March 15, 2014.
Special thanks to Brian Cohan (Attorney at Law, Law Offices of Brian J. Cohan, P.C.) for bringing this article to my attention.