A Roth IRA carries a list of benefits that make it an attractive choice for those who want more control over their money or want a more versatile investment option to save for their retirement. With Roth IRAs, there are no age contribution restrictions. This means that as long as you are earning a qualified income, you can freely contribute to your Roth IRA regardless of your age.
Also, Roth IRAs work beautifully for those who wish to keep saving throughout their retirement, as there are no mandatory withdrawals or Required Minimum Distributions (RMD). Tax-free withdrawals make the Roth IRA a strong option for those in a higher tax bracket or highly taxed area, but due to the income limitations, not everyone can be eligible to open such a retirement account.
Because of the way Roth IRAs are taxed, it is best to go with a Roth IRA over a traditional IRA if you think your taxes will be higher in your retirement than they are right now.
There are limits on how much you can add to a Roth IRA each year. If you are younger than 50 years of age, you can contribute up to $6,000 per year. If you are 50 years of age or older, you can contribute up to $7,000 per year.
If you would like to open a Roth IRA account, you can contact a credit union, bank, brokerage firm or other financial entity that is approved by the IRS to provide IRA accounts.