RETIREMENT ROTH IRAs
Roth IRA accounts give the retirement saver the ability to completely eliminate federal taxes on their investment earnings. Once you have had the Roth IRA account for five years, withdrawals are free from Federal Taxes that are made after age 59 ½, on or after your disability or death or higher education expenses or first-time home purchase (up to $10,000).
Like a traditional IRA, you can contribute up to $3,000 annually ($3,500 if age 50 or older) to a Roth IRA, if you have earned income. Contributions to a Roth IRA, however, are not tax deductible.
Roth IRA is an outstanding retirement and college saving investment vehicle. Utilize your Roth IRA to the fullest. A college institution will contribute more money towards your child's education by utilizing your Roth IRA. If you are saving money for your child's education and the money is in your child's name your college institution will take that money under consideration when determining scholarship's and financial aid. Your spouse and yourself can put up to $3,000.00 a year each into a Roth IRA. The earnings from the post-tax contribution is tax-free, in your name and can be applied without penalties to your child's education. If your child does not go to college that money will be used for your retirement and not a new car for your child.
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