The Roth IRA is a type of individual retirement account that is not taxed. The IRS taxes the contribution, but not the earning, therefore a person who is looking to defer taxation on their retirement account should not open a Roth IRA.
The maximum amount of contribution that is allowed for a Roth IRA is $5000 per year. A person who is over 50 year old may contribute $6000. The direct contributions to a Roth IRA is withdrawn tax free at anytime, and people can use up to $10,000 of this money to purchase a first home.
The Roth IRA does not require the account owner to withdraw money after a certain age, but eligibility is for an account limits a person who makes a lot of money to open an account.
Roth IRA conversions: new rules, new opportunities: a small amount of planning may result in a large amount of income tax savings.(INPRACTICE)(individual retirement account )
Aug 01, 2010; Although the Roth version of the individual retirement account (IRA) has been around since 1998 and is one of the best financial...