Should I consider a Roth IRA? By Matthew D. Bennage – Financial Advisor
Wouldn’t it be great to own a retirement account that could provide tax-free distributions*, tax- deferred growth, and penalty free access* along the way? Have you ever heard of a Roth IRA?
Roth IRA’s have become a very popular place to store retirement savings due to its unique features:
1. After-tax contributions (no income tax deduction)
2. Tax-deferred growth
3. *Qualified distributions are tax-free
4. Penalty free and tax-free access for a death, disability and up to $10,000 for a first-time home
buyer.
5. $5,500 contribution per person per tax year
A Roth IRA may make sense for those who think they may be in a higher tax bracket come retirement.
This means for those with still a long working career ahead of them may benefit from an account like this. Or those nearing retirement who expect to be living on less income than during their working years.
Have children? Want a way to save for their education and your retirement at the same time? Not sure if college specific savings vehicles are the right solution for your kids educational needs? The main purpose of a Roth IRA is for retirement income. However, the IRS will waive the standard 10% penalty for early account withdrawals if the money is used for qualified higher educational expenses**. The advantage here is if your child needs extra money to help with college costs, a Roth could be an efficient way to save for these possible expenses. If the child does not need the money, keep the funds growing for your own retirement!
To determine if a Roth IRA is suitable for your situation, contact a financial advisor. **Income tax is due on any capital appreciation realized.
Presented by: Matthew D. Bennage – Financial Advisor
6206 Slocum Rd, Ontario, NY 14519. (315) 333-5465
Securities and advisory services offered through Commonwealth Financial Network, Member www.FINRA.org/www.SIPC.com, a Registered
Investment Adviser. This material is intended for informational/educational purposes only and should not be construed as investment advice, a solicitation, or a recommendation to buy or sell any security or investment product.