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Let Schroen Investment help you shelter your retirement funds and grow your money tax free as you plan and prepare for your retirement. With a Roth IRA, you pay income tax and then make contributions with post-tax dollars. Your principal grows tax-free, and you pay no additional taxes on withdrawal.
The advantage of a Roth IRA over a regular IRA account is obvious. Either way you pay income tax up front. But with Roth, you're then done paying taxes; with a regular account you're just getting started.
• Roth is simple: it requires no special reporting to the IRS.
• Roth is flexible: because you've taken care of your tax obligations up front you tend to face fewer restrictions later.
• Roth is advantageous if you think taxes will probably rise in the future, since you're paying now rather than later.
• Roth has an additional, somewhat confusing advantage that it lets you shelter more real money: the same dollar amount, but in post-tax, rather than pre-tax dollars.
• Roth contributions are not tax deductible
• With Roth, there is no Mandatory Distribution Age
• All Roth IRA account earnings and principal are 100% tax free if rules and regulations are followed
• Roth funds can be used to purchase various investments (stocks, bonds, certificates of deposits, etc.)
• Roth IRA is available only to single-filers making up to $95,000 or married couples making a combined maximum of $150,000 annually.
• Principal contributions can be withdrawn any time without penalty (subject to some minimal conditions).