DISCOVER THE RETIREMENT BREAKTHROUGH ?THE ROTH IRA!
If you don't know what a Roth IRA is then stop everything, print this article and read it carefully as this will certainly be the most valuable information you read this year. This next retirement account is to your net worth what light bulb was to electricity. Let me tell you about this wonderful financial invention called a Roth IRA!The main difference between the Roth and traditional IRA is that with the Roth you pay taxes first and then make the contribution. This is absolutely fantastic if you make a lot of money in the stock market because you NEVER have to pay even a dime on the capital gains! There are a ton of other advantages to the Roth IRA. Unlike the traditional IRA you can be of any age and still contribute.
You can also make a contribution to a Roth IRA at any time for a particular calendar year up until the due date of your tax return for that year. This means that if you want to make a Roth IRA contribution for 2005, you could make it anytime between January 1, 2005 and April 15, 2006. Another nice feature of the Roth IRA is that your spouse will also qualify for a contribution. There is no tax deduction for Roth IRAs. Contributions are made with money that has already been taxed so there is no immediate tax break.
Don't fool yourself into thinking that this isn't the best thing since the wheel because when Roth money is taken out, it is a tax-free distribution! This type of IRA is ideal for individuals in a lower tax bracket now, but anticipate being in a higher tax bracket at retirement. In other words, if you are in a blue-collar or white-collar middle class family and are learning and practicing good savings and investment habits than this is your retirement life saver!It gets even better; you may make contributions at any age, even after you reach 70?. You must have your Roth account open for at least five years before you can take a penalty free distribution of earnings. Distributions of earnings without penalty can be taken after age 59?. If you are a first-time home buyer or become disabled, you can take distributions earlier.
You can also withdraw the contributions at any time penalty free as long as you don't withdraw investment earnings. What many people don't know who even have Roth is that they can withdraw the contribution for the account without penalty at any time as long as you don't touch any stock profits. If you exceed the income limits you can neither contribute to nor roll over other IRA money into a Roth account. If you opened a Roth while you were under the income limits but then later earn more, your Roth account still will earn money tax-free that you can take out later without tax implications, but no new contributions are allowed. Another absolutely incredible feature of the Roth IRA is that it is also judgment proof.
If you get sued it can be very hard for the lawyers to get it from you!.
ABOUT THE AUTHOR: Dr. Scott Brown, Ph.D., the Wallet Doctor, is a successful investor. Dr. Brown holds a Ph.D. in finance. The Wallet Doctor is sought after for investment advice and coaching. For more information visit Dr. Brown?s site at www.BonanzaBase.com or sign up for his investment tips at www.WalletDoctor.comRetirement and the Roth IRA
Copyright 2006 Ronald Hudkins
An IRA is an IRA is an IRA, unless it's a Roth IRA.
Roth IRAs, which burst upon the investment scene not so long ago, offers some attractive departures from traditional IRAs, especially if it's being used as a retirement planning tool.
The Roth is the same as a traditional IRA in that it is not an investment in and of itself, but a vehicle to investing in other instruments such as stocks, bonds, bank certificates of deposit, mutual funds, and even real estate.
That's pretty much where the similarities end and the differences begin.
With an ordinary IRA, the money you contribute is not subject to income taxes first, it comes straight from your gross salary.
Taxes are paid when you withdraw the money and traditional IRA monies have to be withdrawn from the account when you turn 70 ?, or they become subject to higher tax rates.
In the case of the Roth IRA, the money you pay in comes...
Ira > Retirement and the Roth IRA
Roth IRA
The Roth IRA (Individual Retirement Account), named after Senator William V. Roth, Jr., came into effect on January 1, 1998. A result of the Taxpayer Relief Act of 1997, the Roth IRA provides a benefit which is otherwise not available in any other form of retirement savings. If you meet the criteria and subscribe to the Roth IRA, all your savings will be tax-free when you or your beneficiary draws on them.
Another advantage is that you can also avoid the early distribution penalties, which you would otherwise have to pay with any other type of withdrawals.
The picture, however, is not all that rosy. This is because you don't get a deduction when you contribute to the Roth IRS.
But since you already paid the taxes for the money contributed to this account, you don't have to pay any at the time of withdrawal.
You need to meet certain eligibility criteria in order to contribute to the Roth IRA. One basic condition is that you should have earned...
Ira > Roth IRA
Could a Roth IRA be Better Than a 401(k)?
Very few people whom I know are familiar with the benefits of the Roth IRA. It was named for the late Senator William Roth of Rhode Island, who proposed it. It is similar to a traditional IRA except contributions are never tax-deductible. Contributions to traditional IRAs are sometimes deductible or partially deductible, depending on your income and whether or not you have a retirement plan like a 401(k) at work. With Roth IRAs, individuals are limited to incomes of $95,000 ($150,000 for couples) to be eligible for full contribution amounts.However, unlike the traditional IRA, you can withdraw your contributions from a Roth IRA at any time, at any age without penalty.
Earnings are not taxed if you wait until at least age 59 1/2 to begin withdrawing them and have held your Roth IRA for at least five years. With a Roth IRA, the contributions are taxed without any deferment, but they grow tax-free and the gains are never taxed (see above). With a 401(k), contributions are tax-deferred,...
Could a Roth IRA be Better Than a 401(k)?
Ira > Could a Roth IRA be Better Than a 401(k)?
The Four Stages of an IRA
Copyright 2006 Damon Clifford
With all these different names and terms being thrown around in the financial community, it can get very confusing on what something is, and what it is not.
How many times has it happened to you?
Let me go through and explain the four stages of an IRA.
Stage 1 ? Regular IRA
Everyone knows what the traditional IRA is.
It is what most of us have our money in.
We call up Fidelity, Charles Schwab, or Merrill Lynch and give them our money.
With this IRA, they make the investment choices for you.
They charge you for this, as they are managing your money.
It could be either fee based or commission based depending on the custodian you chose.
Stage 2 ? "self directed" IRA
Stage 2 takes it a little step further.
You still have your money with Fidelity, Charles Schwab, or Merrill Lynch but they allow you to make the decisions.
...
Ira > The Four Stages of an IRA
The Four Stages of an IRA
Copyright 2006 Damon Clifford
With all these different names and terms being thrown around in the financial community, it can get very confusing on what something is, and what it is not.
How many times has it happened to you?
Let me go through and explain the four stages of an IRA.
Stage 1 ? Regular IRA
Everyone knows what the traditional IRA is.
It is what most of us have our money in.
We call up Fidelity, Charles Schwab, or Merrill Lynch and give them our money.
With this IRA, they make the investment choices for you.
They charge you for this, as they are managing your money.
It could be either fee based or commission based depending on the custodian you chose.
Stage 2 ? "self directed" IRA
Stage 2 takes it a little step further.
You still have your money with Fidelity, Charles Schwab, or Merrill Lynch but they allow you to make the decisions.
...
Ira > The Four Stages of an IRA
Cash Now and Rainmaker Announce 401(k) or IRA Rollover Assets to Finance new Cash Now Licenses and Expansions
Cash Now Corporation, (CHNW) a pioneer and continuing leader in the payday loan industry, is now offering a way for investors to use their 401(k) or IRA rollover assets to finance new Cash Now licenses and expansions and as capital for other new businesses. Cash Now can make this offer now because it has established an exclusive agreement with a U.S. tax consulting firm specializing in 401(k), 403 (b), Pension, Profit Sharing, IRA rollover or other types of retirement plans. The result is that Cash Now can help entrepreneurs and investors use their 401(k), 403 (b), pension, profit sharing, IRA rollovers or other retirement plans to finance the purchase of a franchise. Cash Now can also advise entrepreneurs and investors on how to use these assets as startup capital for other businesses or to purchase business property with no taxes, no penalties and no loan repayment.
This can be done without distributions, taxes, penalties, or the use of loans. In many cases the money can be...
Cash Now and Rainmaker Announce 401(k) or IRA Rollover Assets to Finance new Cash Now Licenses and Expansions
Ira > Cash Now and Rainmaker Announce 401(k) or IRA Rollover Assets to Finance new Cash Now Licenses and Expansions