Word: rothe
(lookup in dictionary)
(lookup stats)
Dates: all
Sort By: most recent first
(reverse)
...Roth is, of course, the now familiar IRA that allows savers to contribute aftertax money, which grows tax free and can be withdrawn tax free in retirement. Traditional IRAs are funded with pretax money that grows tax deferred but is subject to tax upon withdrawal. Here are three key corrections in the bill that relate to the Roth...
...will be allowed to convert an existing IRA to a Roth, and you can wait until you file your tax return to revert to the old IRA penalty free. That means that if you expect to be just under the income limit, you can convert now without fear of stiff penalties should you find that you miscalculated...
...will be easier to convert all your old IRAs into one Roth and put new contributions there as well. That eliminates any fees associated with multiple accounts...
...There will be only one five-year holding period before you become eligible for withdrawals. It would begin the year you open your first Roth and apply to all money added later. You still must be 59 1/2 or use the money for certain exceptions like the purchase of a first home. But money contributed several years after the Roth is established becomes available for withdrawal that much sooner...
...flexible Roth isn't just for retirement anymore. It's a great way to shelter your estate and finance a first home or even fund a college education. There are myriad ways to take advantage. But first you must have a Roth to draw upon, and that's why the changes mentioned above are so important. They encourage people already retired or with the highest eligible incomes to set up a Roth. Some, though, might need to "manage" their income for at least one tax year to get it low enough to allow conversion...