In this @SlagleFinancial video, we discuss potential tax implications on your hard-earned dollars and why a Roth IRA is something you might want to consider….(read more)

LEARN MORE ABOUT: IRA Accounts

INVESTING IN A GOLD IRA: Gold IRA Account

INVESTING IN A SILVER IRA: Silver IRA Account

REVEALED: Best Gold Backed IRA

When it comes to saving for retirement, people have many options from 401k, traditional IRA and Roth IRA. Roth IRA has been a popular choice for those who are eligible. Let’s take a closer look at what a Roth IRA is and how it works.

A Roth IRA is a retirement savings account that allows you to deposit after-tax money into the account. With a Roth IRA, you won’t get an immediate tax deduction for your contributions like you would with a traditional IRA, but your withdrawals in retirement are tax-free.

One major advantage of a Roth IRA is that it allows for tax-free growth. Over time, the money in your account can grow, and you won’t have to pay taxes on the growth when you withdraw your funds in retirement. This can be a huge advantage for those who expect to be in a higher tax bracket in retirement.

Another advantage of a Roth IRA is that there are no required minimum distributions (RMDs) during the owner’s lifetime. The owner can choose when to take distributions or even leave the account to beneficiaries tax-free upon death.

Eligibility for a Roth IRA is determined by income. A single filer must have a modified adjusted gross income (MAGI) of less than $125,000 in 2021 to contribute the maximum amount, with a reduced limit for MAGI up to $140,000. Married couples who file jointly must have a MAGI of less than $198,000, with a reduced limit for MAGI up to $208,000.

Contribution limits to Roth IRA accounts are subject to change by the IRS annually. In 2021, individuals under age 50 can contribute up to $6,000 per year, and individuals over age 50 can contribute up to $7,000 per year.

Overall, a Roth IRA can be a powerful tool for retirement savings, especially for those who expect to be in a higher tax bracket in retirement. With tax-free growth and the ability to withdraw funds tax-free in retirement, a Roth IRA can provide a tax-efficient source of retirement income.