A Roth IRA can be a powerful, yet flexible tool for enhancing your retirement savings. With a Roth IRA, you’ll receive your retirement money tax-free when taking qualified withdrawals.
A Roth IRA offers:
- Tax-free growth and tax-free withdrawals. Never pay federal taxes on your earnings, when taking qualified withdrawals.
- No annual distribution requirements. You don't have to withdraw money until you're ready for retirement.
- Flexible contributions. You can keep contributing after retirement (beyond age 70 ½).
- A wide variety of investments.
Roth IRA vs. Traditional IRA
- Compare eligibility, contributions, and distribution details (PDF: 40KB) for traditional IRA's and Roth IRA's.
- Use online calculators to figure out which IRA better suits your financial needs.
Time to convert to a Roth IRA?
With new government changes, this could be the time to make a Roth IRA part of your overall retirement savings plan.
Regulatory changes in 2010 will allow anyone with an IRA or other eligible qualified retirement plan to convert to a Roth IRA. Income restrictions are going away.