Skip to main content
  1. News
  2. Business & Finance
  3. Personal Finance

Age is no limit: 6 powerful benefits of the Roth IRA for all investors--Part 3

See also

For Capitol Region investors, a Roth IRA is an individual retirement account that offers a valuable future tax break: Tax-free income in retirement. Like beauty, the benefit of a Roth IRA is in the eye of the beholder and it all depends on the beholder’s tax bracket--both now and when he or she retires.

Flexibility at choosing that age of retirement is a crucial benefit:

  • With a traditional IRA, investors must stop making contributions when they turn 70 1/2 years old, at which point they are forced to take distributions and begin paying taxes on that money.
  • The Roth IRA has no required minimum distributions. That means you can live to 120 without ever tapping your Roth IRA.
  • Anyone with earned income can keep adding to their Roth IRA account regardless of age.
  • If you're earning an income at age 87 and want to save for the future, have at it: You can continue to contribute until you quit working or pass away, whichever comes first.

If you're still working, you can contribute.

For a complete guide to getting a financial review, visit our online site. Sign up for a complete guide to money basics, including investing, write in for a free copy of How Money Works: A Common Sense Guide to Financial Success.

Dave Balog teaches financial essentials for families. 952-1257. dbalog99@gmail.com

Advertisement

Related Videos:

  • The US Economy is firing on all cylinders
    <div class="video-info" data-id="518392041" data-param-name="playList" data-provider="5min" data-url="http://pshared.5min.com/Scripts/PlayerSeed.js?sid=1304&width=480&height=401&playList=518392041&autoStart=true"></div>
  • Dave Ramsey Ice Bucket Challenge
    <iframe width="560" height="315" src="//www.youtube.com/embed/siabQp-YZF8?VQ=HD720&amp;allowfullscreen=true&amp;autoplay=1"></iframe>
  • Investing
    <div class="video-info" data-id="518143295" data-param-name="playList" data-provider="5min" data-url="http://pshared.5min.com/Scripts/PlayerSeed.js?sid=1304&width=480&height=401&playList=518143295&autoStart=true"></div>