Dec 23

2 comments so far...

  • bowler_j Said on December 23rd, 2009 at 12:56 am:

    The money you invest is after tax. Your investments grow tax free and can be withdrawn without taxation at age 59.5 or later as long as the account has been in existence for at least five years.

    There is no maximum age at which time you are forced to withdraw your money.

    Other than that contribution limits are the same as with regular IRA’s and you can invest in the same types of investments.

    The main benefit is that your withdrawals are tax free.

  • Katrina Said on December 23rd, 2009 at 1:32 am:

    - Your IRA must be maintained as a trust or custodial account at a bank, a federally insured credit union, a savings and loan association, or an entity approved by the IRS to act as trustee or custodian.
    - Any regular contribution to an IRA (contributions other than conversions or rollovers) must be made in cash.
    - You CAN NOT:
    1. Borrow from your IRA or use it as security for a loan.
    2. Sell property to your IRA, or buy property from it.
    3. Buy property for your personal use with funds held by your IRA (before the funds have been distributed to you).
    4. Invest your IRA in certain “collectibles.”

    - Contributions can be withdrawn without taxes or penalties.
    - Distributions, including capital gains, interest, and dividends are tax-free if you are at least 59 ½ and the account has been established for longer than five years.2
    - You can contribute after age 70 ½ as long as you have earned income.
    - No minimum distribution requirements during your lifetime.
    - Tax-free benefits can be passed to your beneficiaries.

  • diywealth Said on January 19th, 2010 at 11:47 pm:

    New Rules Ease Roth Conversions, but Benefits Vary:

  • claireschwab Said on February 12th, 2010 at 5:39 am: New Rules Ease Roth Conversions, but Benefits Vary higher tax bracket !

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