Roth IRA: For your retirement and beyond - Ahwatukee Foothills News: Money

default avatar
Welcome to the site! Login or Signup below.
|
||
Logout|My Dashboard

Roth IRA: For your retirement and beyond

Print
Font Size:
Default font size
Larger font size

Related Stories

Posted: Tuesday, August 14, 2012 2:49 pm

If you’re somewhat familiar with investing, you may know that the Roth IRA is a great retirement-savings vehicle. But are you aware that some of its benefits can also pay off for the next generation of your family?

To understand why this is so, it’s necessary to be familiar with a Roth IRAs features. For starters, when you contribute to a Roth IRA, your earnings have the potential to grow tax free, provided you don’t start taking withdrawals until you’re 59 1/2 and you’ve had your account at least five years. The amounts you contributed aren’t taxed when withdrawn because you’ve already paid taxes on the money you put in. And the potential for tax-free earnings can continue even when your beneficiaries inherit your Roth IRA, though you’ll need to consult with your tax advisor on this issue.

A Roth IRA also offers other features that can help you build resources for retirement while possibly helping your surviving family members. For one thing, you can contribute to your Roth IRA for as long as you have some earned income, up to the contribution limits, and as long as you meet certain income limitations. Even if you’ve officially “retired,” you might do some consulting or part-time work. So you could put some of your earnings into your Roth IRA. This ability to keep funding your Roth IRA virtually indefinitely can give you more flexibility in managing your retirement income — and, depending on how you do manage that income and what your other objectives may be, you may also end up with more money that could be left to your beneficiaries.

Also, unlike a traditional IRA or a 401(k), a Roth IRA does not require you to start taking minimum distributions at age 70 1/2. In fact, you are never required to withdraw money from your Roth IRA. And by leaving your account intact for as long as possible, you’ll potentially have more money available for a variety of options — one of which may involve leaving sums to your beneficiaries. Your non-spouse beneficiaries must take annual required minimum distributions, but they have the option to take the distributions over their lifetime.

Keep in mind, though, that your Roth IRA is part of your estate for purposes of federal estate taxes. In 2012, your estate would be subject to these taxes if it were worth more than $5.12 million (or less, if you made certain gifts). In 2013, however, this amount is scheduled to drop to $1 million unless Congress acts on this issue (some states also have estate taxes that apply at amounts less than the federal amount). In any case, if you have a sizable estate, you should consult with your tax and legal advisors.

When you invest in a Roth IRA, your goal, first and foremost, is to help fund your retirement. In fact, basically all your decisions regarding your Roth IRA — how much to contribute, where to invest the money and when to begin taking withdrawals — should be based on your own retirement goals. However, as a side benefit to investing in a Roth IRA, you may find that you could help out the next generation, or two, of your family.

• This article was written by Edward Jones for use by Ahwatukee Foothills Edward Jones Financial Advisor Joseph B. Ortiz, CRPS. Reach Ortiz at (480) 753-7664 or joseph.ortiz@edwardjones.com. Chartered Retirement Plans Specialist and CRPS are registered service marks of the College for Financial Planning.

More about

More about

More about

  • Discuss

Six Things I Love About the Hacienda Del Sol Guest Ranch Resort

Shares 79I’ll admit it.  When it comes to hotels stays, I am particular.  I expect a hotel I am paying good money for to be immaculately clean…

Published: September 29, 2016 - 1:04 am @ http://acorkforkandpassport.com/hacienda-del-sol-g…

Arizona State Fair Food: 38 new deep-fried treats and desserts to try at this year's fair (Oct 7-30)

PHOENIX - Last year , the new food items to the Arizona State Fair were the deep-fried Red Velvet Cupcake and the Spaghetti Ice Cream. (We're …

Published: September 29, 2016 - 12:02 am @ http://www.abc15.com/entertainment/events/arizona-…

Ariz. paper faces threats, loses subscribers after Clinton endorsement

The Arizona Republic is suffering some major blowback for its decision to back a Democrat over a Republican in a presidential campaign for the…

Published: September 28, 2016 - 11:42 pm @ http://www.usatoday.com/story/news/politics/onpoli…

Prescott Patriots

See more of Prescott Patriots by logging into FacebookMessage this Page, learn about upcoming events and more. If you don't have a Facebook ac…

Published: September 28, 2016 - 11:01 pm @ https://www.facebook.com/PrescottPatriots/

This Fiercely Conservative Newspaper Is Endorsing A Democrat For The First Time Ever (VIDEO)

The Arizona Republic has a long and storied history of endorsing Republicans for president. That has now changed, and for the first time in th…

Published: September 28, 2016 - 10:00 pm @ http://reverbpress.com/politics/this-fiercely-cons…

From Phoenix to Mesa, Here's Your Guide to Public Art on the Light Rail

Lynn Trimble A A Looking for a diverse assortment of art by artists in and beyond Arizona? Consider jumping on the Valley Metro Light Rail, wh…

Published: September 28, 2016 - 9:10 pm @ http://www.phoenixnewtimes.com/arts/from-phoenix-t…

Arizona Cardinals: 5 bold predictions vs Rams

The Arizona Cardinals will be looking to get back on the winning track on Sunday afternoon, facing the Los Angeles Rams at 1:25 p.m.  It will …

Published: September 28, 2016 - 8:59 pm @ http://raisingzona.com/2016/09/28/arizona-cardinal…

Donald Trump to pay another visit to Arizona next week

PHOENIX — Republican presidential nominee Donald Trump is coming back to Arizona next week, but will not be in the Phoenix area this time arou…

Published: September 28, 2016 - 8:40 pm @ http://ktar.com/story/1293708/back-for-more-donald…

U.S. ELECTION WRAP: Clinton Vows to Work With Sanders on Agenda

Hillary Clinton hit the campaign trail in New Hampshire with former rival Senator Bernie Sanders in a bid to ignite enthusiasm among hard-to-g…

Published: September 28, 2016 - 8:36 pm @ http://www.bloomberg.com/politics/articles/2016-09…

California shooting victim had ties to Arizona; man shot by police 1 minute after arriving

GLENDALE, AZ - Police in the San Diego suburb of El Cajon shot and killed a black man a minute after arriving near a strip mall to investigate…

Published: September 28, 2016 - 7:28 pm @ http://www.abc15.com/news/state/california-shootin…

Facebook

ahwatukee.com on Facebook

Twitter

ahwatukee.com on Twitter

RSS

Subscribe to ahwatukee.com via RSS

RSS Feeds

Spacer4px

Most Popular

Online poll

Loading…