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The Roth IRA is a individual retirement account that offers an invaluable asset for the future: TAX-FREE income in retirement. How does this work? Well, the benefit of a Roth IRA is all up to the policy holder and it all depends on the beholder’s tax bracket--both currently and then also when he or she enters into retirement.
Even though there is no immediate tax break for Roth IRA contributions as there is with a Traditional IRA, Roth payouts are TAX-FREE when you abide by the rules. And because the money you contribute to your Roth is after-tax money, you can withdraw (from your contributions, not your growth) whenever you need to, want to, or have to!
Roth IRAs are great for anyone looking for a way to have a steady income during retirement. For more mature, wealthier tax-payers who wish to leave a TAX-FREE asset to their heirs, the Roth IRA creates a safe haven for wealth preservation. For younger individuals who most likely will be in a higher tax bracket during retirement, the Roth IRA can save thousands of dollars in taxes and provide a steady stream of extra income, TAX-FREE.
Anyone can start at any age to contribute to a Roth IRA, if you have earned income from a job, and you fall within the other guidelines. Are you are ready to start building tax-free income for your retirement today?