Do you have the golden egg?
The Roth IRA is probably the best investment vehicle for retirement to date (except maybe the Roth 401K).
The Roth functions just like an IRA, but one major difference: Drum roll please……qualified distributions are tax free…I meant TAX FREE!
Decades of compound interest can grow tax free. This is great news as no one knows what taxes will look like in 5, 10, 25 years. It’s a good guess that they will be higher than today, so tax free earnings will be a huge bonus.
Who Can Contribute to a Roth IRA?
-If you have an earned income or your spouse did, then most likely you can contribute to a Roth. If you have a question click down to page 55 of this long IRS document.
-There are income limits (2012 stats) for contributing to the Roth:
- $179,00 married filing jointly
- $122,000 single
- $10,000 married filing separately.
How Much Can I Contribute?
Contributions for combined Roth and Traditional IRA are 5,000 or $6,000 if you are 50 and over. Your spouse can also contribute the same amount in most cases.
When Can I Contribute?
You have until the deadline for filing your taxes. So before you file, make sure you top off your Roths. This year you have until April 17th (Tax Day) to contribute to your 2011 Roth.
Experts Agree: Roth is the Best
“I cannot repeat this enough: If you are eligible to invest in a Roth IRA, I think it is hands down the best retirement investment you can make.” Suze Orman
“The best way to start investing is with a Roth IRA.”- Dave Ramsey
In fact more than 140 personal finance bloggers are writing about Roth IRA’s today.
Why? Because out of 50 graduating college students 0 knew what a Roth was and this guy got mad and stirred up the whole personal finance blogging community.
The personal finance community knows the Roth IRA is the best financial product out there for retirement. Read 140+ articles about the Roth IRA and register to win $5,000 for your IRA.
Do you have a Roth? Start one this year or contribute to 2011 if you haven’t filed taxes yet. Remember it’s the golden egg of your retirement.
Photo Credit scottwills (Creative Commons)
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