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 70 ½ if you’re still earning income.
- Leave a legacy. You can pass your Roth IRA assets to your heirs, free of federal income tax.
Is a Roth IRA right for you?
In general, a Roth IRA might be the right choice if:
- You think tax rates are likely to increase in the future, or you’re likely to be in a higher tax bracket when you retire
- You’re further out from retirement and have longer to benefit from tax-free earnings growth
- You’d like to continue contributing to your IRA in retirement (beyond age 70½)
- Your income doesn’t exceed the Roth IRA eligibility limit
- You want to add some tax flexibility by having a portion of your savings in an account that’s already been taxed.
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.