Difference between revisions of "Roth IRA"
Line 16: | Line 16: | ||
*[[Gold standard]] and [[precious metal]]s | *[[Gold standard]] and [[precious metal]]s | ||
− | *[[Invest in tangibles]] - [[Rural]] [[farm]] [[land]], [[Tools]], [[Food storage]], [[Precious | + | *[[Invest in tangibles]] - [[Rural]] [[farm]] [[land]], [[Tools]], [[Food storage]], [[Precious metals]] |
*[[Agriculture]]-[[Permaculture]]: [[Growing your own food]], [[Food and water storage]] | *[[Agriculture]]-[[Permaculture]]: [[Growing your own food]], [[Food and water storage]] | ||
Revision as of 20:40, March 31, 2016
An Roth individual retirement arrangement (Roth IRA) is a personal savings plan which allows one to invest or set aside money for retirement, while offering deferred tax / tax advantages. [1] 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plans is that, instead of granting a tax break for money placed into the plan, the tax break is granted on the money withdrawn from the plan during retirement.
"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 dollars, meaning the individual does not deduct the contribution from that year’s income taxes. 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."[2]
Roth IRAs can be contain investments in securities, most often common stocks and bonds, typically through mutual funds. Roth IRAs also, less commonly, allow other investments, including real estate, derivatives, notes, certificates of deposit, and are possible). Roth IRAs also allow annuities bought from a life insurance company.
See Also
- Self-directed IRA and IRA, 401(k), Roth IRA, 403(b), Retirement, Social security
- Stocks and Bonds
- Stock market
- Savings account - Savings
- Inflation versus Interest rates / Rate of return
Contrast with:
- Gold standard and precious metals
- Invest in tangibles - Rural farm land, Tools, Food storage, Precious metals
- Agriculture-Permaculture: Growing your own food, Food and water storage
Further Reading
Bledsoe, John D. (1998). Roth to Riches: The Ordinary to Roth IRA handbook. Dallas, TX: Legacy Press. ISBN 0-9629114-1-0. OCLC 40158081.
Daryanani, Gobind (1998). 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. Bernardsville, NJ: Digiqual Inc.. ISBN 0-9665398-1-8. OCLC 40340829.
Merritt, Steve (1998). All about the New IRA, Roth, Traditional, Educational: How to Cash in on the New Tax Law Changes. Melbourne, FL: Halyard Press. ISBN 1-887063-07-2. OCLC 39363078.
Slesnick, Twila (2007). IRAs, 401(k)s, & Other Retirement Plans: Taking Your Money Out, 8th, Berkeley, CA: Nolo. ISBN 978-1-4133-0696-5. OCLC 85162294.
Thomas, Kaye A. (2004). Fairmark Guide to the Roth IRA: Retirement Planning in Plain Language. Lisle, IL: Fairmark Press, Inc.. ISBN 0-9674981-0-4. OCLC 55048948.
Trock, Gary R. (1998). The Roth IRA Made Simple. Grifith, IN: Conquest Pub.. ISBN 0-9666227-0-7. OCLC 40641031.
External Links
- IRS Publication 590 (IRAs) (pdf)
- IRS ROTH IRA Publication 590
- http://survivalblog.com/letter-re-self-directed-ira/
- http://survivalblog.com/guest-post-self-directing-your-retirement-sheltering-the-fruits-of-your-labor-by-will-lehr/
- http://survivalblog.com/letter-re-self-directed-ira-article/
- Rothify Your 401(k) Forbes.com
- Humberto Cruz. "Traditional to Roth IRA conversions: Don’t be tripped up by tax implications", February 13, 2010.
References