Reported 3 days ago
Investing in a Roth IRA offers long-term tax benefits, especially for younger earners who anticipate a higher tax rate in the future. Contributions are made with after-tax income, which means no initial tax deduction, but withdrawals in retirement are tax-free. Eligibility is contingent on having earned income and there are specific contribution limits based on age. Additionally, income limits apply for contributing directly to a Roth IRA, with options like backdoor Roths available for higher earners. Key perks include tax-free withdrawals of contributions anytime, no minimum distributions, and tax-free transfers upon inheritance.
Source: YAHOO