Jan 12

How much should a person make before starting to think about investing in a Roth account?

8 comments so far...

  • bmanjamz Said on January 12th, 2010 at 6:31 pm:

    no, they are for anyone with income. you make $200, you can invest $200. good luck.

  • ihave5katz Said on January 12th, 2010 at 6:42 pm:

    If you inherit an IRA from someone who has died, you have to draw off a certain percentage each year regardless of the “type” of IRA it is.

  • isthisthingon79 Said on January 12th, 2010 at 7:03 pm:

    roths are for anyone no certain amount needed and you can start one with like $50.00 and you dont need to make a certain amount a year

  • The ~Muffin~ Man Said on January 12th, 2010 at 7:19 pm:

    Actually Roth IRA’s are only for people making UNDER a certain amount of money each year.

    You never make too little to think about investing in a Roth IRA. If anything, the less that you make the MORE that you should invest…

    Where else can you invest money and have the government NOT tax the income on it?

  • Kitty Said on January 12th, 2010 at 7:41 pm:

    Any amount of income is a good time to start an IRA whether Roth or other. I had my son start his at age 14… he adds to it annually and has grown to $$ thousands $$ now and he just turned 20. He will have a bright future due to NOT sitting around thinking about it, but DOING something about it.

    Never “try” to take care of you financial future…DO SO !!! Why try when you can DO ! Good luck : )

  • fluffydogconnoisseur Said on January 12th, 2010 at 8:09 pm:

    No, in fact they are only for people who make under a certain amount of money.

  • jeff410 Said on January 12th, 2010 at 8:46 pm:

    There is no minimum amount you can make and contribute to an IRA. But there is a maximum of $160,000 for married filing jointly or $110.000 if you’re single. The rules for inherited IRA’s have changed.

  • William Peiffer Said on January 13th, 2010 at 11:26 am:

    Annual income is not necessarily a determining factor in deciding if one should choose a Roth IRA over a Traditional IRA. The choice really is about taxation, more specifically about when and possibly how much tax you want to pay. With a traditional IRA you are saving with pre taxed dollars and saving grow on a TAX DEFERRED basis. With a ROTH IRA you are saving with after tax dollars and future growth is TAX FREE. So do you want to pay the tax now or later? With the current economic climate and existing administration the belief is that taxes will go up in the future. So a ROTH may be a better choice. Another big advantage with a ROTH is the fact that there are no required distributions at age 70 ½. So if you do not need the income you are not forced to take distributions. This allows the IRA to continue to grow and can create a legacy when passed on to heirs. Add to this, the ability to create a stretch IRA allowing the IRA to payout over three generations. You can take a $200,000 ROTH IRA and payout over $2 million TAX FREE to three generations of heirs.

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