In addition to tax-free withdrawals, a Roth IRA lets you:
- Contribute as long as you're working. Unlike a traditional IRA, you can continue making contributions after age 70½ if you’re still earning income.
- Leave a legacy. You can pass your Roth IRA assets to your heirs, free of federal income tax.
Could a Roth IRA be right for you?
A Roth IRA can be an excellent savings vehicle for many people, but it depends on your needs and situation, including:
- Your current income level (your income must fall below a certain threshold to be eligible for a Roth IRA)
- Your tax bracket now compared to what it might be in retirement (since you pay taxes on Roth contributions at the time you make them)
- When you think you’ll want to start pulling money from your IRA (Roth IRAs have different saving and withdrawal timeframes than traditional IRAs)
Use this quiz (PDF) to help you determine if a Roth IRA might be a good choice for you, and as a starting point to discuss with your financial professional.
Compare a Roth IRA and a traditional IRA
A traditional IRA is another type of IRA you can choose. Compare a Roth IRA and traditional IRA side by side.
Learn more about a Principal IRA
Find out how a Principal® IRA can help you stay on track to reach your retirement goals. Learn more about choosing a Principal IRA.
Or, open your Principal IRA today:
Want more information? Read our article on 3 steps for starting an IRA.