Almost all of the people I have met have not planned for their retirement as one says ‘future is unpredictable and we want to live in present ‘ but my dear friend’s future is the result of present, our present will decide our future. In contrast to the plain fact, the majority of the retiree lives an active life. When we think about retirement we usually think about old age, a time when you have got to give up the job and sit at home doing nothing. We have to decisively consider out planning towards retirement because after we retiree our revenue stops coming but our costs remain as it is and in a few cases it rises with the rising inflation. A Roth IRA being managed by pros is a key to effective retirement planning. They’ll be used to form a plan that may give you the amount you want at the end of your career.
So what is a Roth IRA? This is a specific type of retirement account that is named after the senator, Sen. William Roth from Delaware, who sponsored the legislation creating the Roth IRA. Contributions to a Roth IRA are not tax deductible in the year that they are made. The advantage to the Roth IRA is that the contributions grow tax free and are not taxed when you retire.
So how do you open a Roth IRA? You have to have income under the income limits and that income must be taxable earned income. Only taxpayers who have earned under the allowable AGI or Adjusted Gross Income are allowed to open a Roth IRA. This amount fluctuates from year to year so check with your tax professional.
Contribution limits to a Roth IRA vary according to age, filing status and adjusted gross income. This again is something that you should confirm with your tax professional. You can contribute to a Roth IRA at any age. This is a difference between a Roth IRA and a traditional IRA.