Thinking About a Roth?

Thinking About a Roth?

Roth and traditional IRAs have the same objective: both provide an incentive to save and both provide income after retirement. However, there are a few distinctions you should be aware of if you are thinking about contributing or converting to a Roth IRA.

Anyone Can Convert

Even if you are a high-income earner and cannot directly contribute to a Roth, anyone is permitted to convert to a Roth IRA at any time (income taxes apply to conversions).

Tax-Free

Roth Contributions are not deductible, but the earnings grow tax-free and qualified distributions are tax-free.

No RMDs

Roth IRA owners are not subject to RMDs at age 70½. Also, you can continue making contributions to a Roth IRA after age 70½ if you have taxable compensation and fall within the MAGI limits.

*Special Note: Roth beneficiaries are required to take RMDs.

Is a Roth IRA right for you? Contact your retirement distribution professional or qualified accountant if you have any Roth IRA questions or need assistance converting to a Roth.