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Is It Time for a Roth?

There are all kinds of retirement accounts but one that has been building steam since 1998, with no signs of stopping, is a Roth IRA.

Advantages of a Roth IRA:

  • Tax-free distributions at age 59 1/2 or after 5 years without taxes or penalty

  • There are no Required Minimum Distributions (#RMDs)

  • Flexible Contribution Options - contribute when you want

  • No ongoing savings or minimum requirements

  • No age limit to open

  • No impact on your company retirement sponsored plan

This could be a phenomenal retirement account for you, a spouse, a working child, or grandkids!


Should you Contribute to a Roth IRA?

Like many financial questions, there are several variables which you should review.


  1. Can you contribute to a Roth IRA? There are income and contribution limits you must follow. See the handy chart below or review the IRS outline. If you are below the threshold continue reading. (Modified Adjusted Growth Income - MAGI).

  2. Are you ready for a Roth IRA? After your emergency account is sufficient, you maxed out your company's matching retirement plan program (if you are lucky to have one), and you have additional money to save for your future self, then it's time to explore a Roth IRA. If not, there maybe some alternatives.

  3. Is one of your family members ready for a Roth IRA? Maybe you can't contribute now, but how about your spouse? If your spouse is earning low or no wages, you can make the contribution on their behalf. If your working dependent child has a summer gig, you can contribute to a minor Roth IRA.


Bottom line:

Roth IRA's provide a great advantage for the young, old, high-earners, or low-earners. Every individual situation is different but it's hard to go wrong with a Roth IRA.


Added benefits of a Roth IRA to your portfolio with tax diversification, early tax-free withdrawal options, and better options for your heirs.


K Wealth Advisors

Think a Roth IRA can benefit your family or have questions about opening a Roth IRA, reach out to K Wealth Advisors. #KWA


Insightful Planning to Live Your Best Life. #IPtLYBL


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