Roth individual retirement accounts (IRAs) are set up by individuals who can contribute up to a set maximum dollar amount each year. Contributions made to the Roth IRA are made using after-tax funds but the money can be withdrawn tax-free during retirement as long as certain provisions are met. The investments in an IRA often include mutual funds, stocks and securities, though other types of funds could also be used. There are fewer restrictions on Roth IRAs than some of the other types of retirement savings accounts. They are also flexible in that contributions can be withdrawn tax-free at any time after age 59 ½ as long as you have had the account for five years. Investors can contribute to a Roth IRA even if they are already participating in a qualified retirement plan such as a 401k.
Roth IRAs are just one of many types of individual retirement accounts. For more information on the wide variety of accounts available, contact the benefits professionals at Savage & Associates. We can explain the tax incentives and benefits of the different types of IRAs to you.
Call 419-475-8665 or fill out our on-line request form for more information or to schedule an exploratory appointment with our experienced professionals at Savage & Associates.