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| − | An '''Roth individual retirement arrangement''' ('''Roth IRA''') is a personal savings plan which allows one to [[investment|invest]] or set aside [[money]] for [[retirement]], while offering [[deferred tax]] / [[tax]] advantages. <ref>http://www.irs.gov/taxtopics/tc451.html</ref>
| + | #REDIRECT[[Individual retirement account]] |
| − | The Roth retirement plan under US [[law]] that is generally not taxed, as long as certain conditions are met. The US tax law allows reduction in tax on a limited amount of [[saving]] for retirement. Roth IRA's main difference from the majority of tax advantaged retirement plans is that, instead of granting a [[tax break]] for money placed into the plan, the tax break is granted on the money withdrawn from the plan during retirement.
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| − | "A Roth IRA is setup and funded by an individual; however, some employer/group plans can have Roth accounts. A Roth is unique in that it is funded with after-[[tax]] [[dollar]]s, meaning the individual does not deduct the contribution from that year’s [[income tax]]es. He or she pays income taxes on the dollars earned and then contributes to the Roth. The benefit of this account type is that the distributions at retirement age are 100% tax-free. No income tax is claimed from the distribution."<ref>http://survivalblog.com/guest-post-self-directing-your-retirement-sheltering-the-fruits-of-your-labor-by-will-lehr Accessed December 8, 2014</ref>
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| − | Roth IRAs can be contain [[investment]]s in [[securities]], most often [[common stock]]s and [[Bond|bonds]], typically through [[mutual fund]]s. Roth IRAs also, less commonly, allow other investments, including [[real estate]], [[derivative]]s, notes, [[certificates of deposit]], and are possible). Roth IRAs also allow [[annuity|annuities]] bought from a [[life insurance]] company.
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| − | == See Also ==
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| − | *[[Self-directed IRA]] and [[IRA]], [[401(k)]], Roth IRA, [[403(b)]], [[Retirement]], [[Social security]]
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| − | *[[Stock]]s and [[Bond]]s
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| − | *[[Stock market]]
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| − | *[[Savings account]] - [[Savings]]
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| − | *[[Inflation]] versus [[Interest rate]]s / [[Rate of return]]
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| − | '''Contrast with:'''
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| − | *[[Gold standard]] and [[precious metal]]s
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| − | *[[Invest in tangibles]] - [[Rural]] [[farm]] [[land]], [[Tools]], [[Food storage]], [[Precious metals]]
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| − | *[[Agriculture]]-[[Permaculture]]: [[Growing your own food]], [[Food and water storage]]
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| − | ==Further Reading==
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| − | * {{Cite book
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| − | |last=Bledsoe |first=John D.
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| − | |title=Roth to Riches: The Ordinary to Roth IRA handbook
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| − | |year=1998
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| − | |publisher=Legacy Press
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| − | |location=Dallas, TX
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| − | |isbn=0-9629114-1-0
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| − | |oclc=40158081}}
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| − | * {{Cite book
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| − | |last=Daryanani |first=Gobind
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| − | |title= Roth IRA Book: An Investor's Guide: Including a Personal Interview with Senator William V. Roth, Jr. (R-De), Chairman, U.S. Senate Finance Committee
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| − | |year=1998
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| − | |publisher=Digiqual Inc.
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| − | |location=Bernardsville, NJ
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| − | |isbn=0-9665398-1-8
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| − | |oclc=40340829}}
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| − | * {{Cite book
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| − | |last=Merritt |first=Steve
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| − | |title=All about the New IRA, Roth, Traditional, Educational: How to Cash in on the New Tax Law Changes
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| − | |year=1998
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| − | |publisher=Halyard Press
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| − | |location=Melbourne, FL
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| − | |isbn=1-887063-07-2
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| − | |oclc=39363078}}
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| − | * {{Cite book
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| − | |last=Slesnick |first=Twila
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| − | |author2=Suttle, John C.
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| − | |title=IRAs, 401(k)s, & Other Retirement Plans: Taking Your Money Out
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| − | |year=2007 |edition=8th
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| − | |publisher=Nolo
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| − | |location=Berkeley, CA
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| − | |isbn=978-1-4133-0696-5
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| − | |oclc=85162294}}
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| − | * {{Cite book
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| − | |last=Thomas|first=Kaye A.
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| − | |title=Fairmark Guide to the Roth IRA: Retirement Planning in Plain Language
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| − | |year=2004
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| − | |publisher=[[Fairmark Press, Inc.]]
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| − | |location=Lisle, IL
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| − | |isbn=0-9674981-0-4
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| − | |oclc=55048948}}
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| − | * {{Cite book
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| − | |last=Trock |first=Gary R.
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| − | |title= The Roth IRA Made Simple
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| − | |year=1998
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| − | |publisher=Conquest Pub.
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| − | |location=Grifith, IN
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| − | |isbn=0-9666227-0-7
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| − | |oclc=40641031}}
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| − | ==External Links==
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| − | * [http://www.irs.gov/pub/irs-pdf/p590.pdf IRS Publication 590 (IRAs)] (pdf)
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| − | * [http://www.irs.gov/publications/p590/ch02.html IRS ROTH IRA Publication 590]
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| − | * http://survivalblog.com/letter-re-self-directed-ira/
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| − | * http://survivalblog.com/guest-post-self-directing-your-retirement-sheltering-the-fruits-of-your-labor-by-will-lehr/
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| − | * http://survivalblog.com/letter-re-self-directed-ira-article/
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| − | * [http://www.forbes.com/forbes/2010/0607/investing-roth-ira-conversion-fidelity-tax-rothify-401k.html Rothify Your 401(k)] Forbes.com
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| − | * {{Cite news
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| − | | url = http://www.boston.com/business/personalfinance/articles/2010/02/13/traditional_to_roth_ira_conversions_dont_be_tripped_up_by_tax_implications/
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| − | | title = Traditional to Roth IRA conversions: Don’t be tripped up by tax implications
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| − | | author = Humberto Cruz
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| − | | newspaper = [[The Boston Globe]]
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| − | | date = February 13, 2010
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| − | }}
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| − | ==References==
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| − | {{reflist|2}}
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| − | {{DEFAULTSORT:Roth Ira}}
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| − | {{Template:Economic preparedness topics}}
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| − | [[Category : Economic Preparedness]]
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| − | [[Category:Individual Retirement Accounts]]
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| − | [[Category:Retirement]]
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| − | [[Category:Investments]]
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| − | [[Category:Economics]]
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| − | [[Category:Real Estate]]
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| − | [[Category:Finance]]
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| − | [[Category:Real Estate]]
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| − | [[Category:Banks]]
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| − | [[Category:Finance]]
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| − | [[Category:Economics]]
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