Need a financial resolution for 2015? Save as much money as you can in a Roth IRA. One of the best things you can do to set yourself up for financial success in the future is to be strategic with your savings.
According to a recent article at gobankingrates.com, titled “CNBC’s Sharon Epperson on Why You Need a Roth IRA in 2015,” in the event of an emergency make sure you're able to withdraw your contributions at any time without incurring penalties or fees. This is also a terrific way to save for retirement, because you might be in a higher or lower tax bracket when you’re in your 60s. Who knows?
With a Roth IRA, typically you can withdraw money tax-free after age 59½. If you qualify for a Roth, you could save up to $5,500 in 2015, or $6,500 if you’re 50 or older. Don’t forget that you have until April 15th to make your contributions for 2014.
Another type of Roth account for retirement savings is a Roth 401(k). This version doesn't have any income limits. If your job has this type of retirement plan (many large employers are expected to offer a Roth 401(k) option in 2015), you can contribute up to $18,000 next year (or $23,000 if you’re 50 or older).
Unlike a traditional IRA or 401(k), Roth contributions won’t reduce your taxable income; however, your overall tax savings (tax-free withdrawals) are likely to be much greater when you retire.
For more information about Estate Planning, Roth IRA, Trusts and Estates, Asset Protection, Estate Planning Lawyer, Power of Attorney, Tax Planning, Probate Attorney, Living Trust Attorney, Estate Tax, IRA's, Elder Law, Long-Term Care Planning, Retirement Planning, Elder Law Retirement Planning; click to my website http://www.parkertrustlaw.com/
Reference: gobankingrates.com (December 6, 2014) “CNBC’s Sharon Epperson on Why You Need a Roth IRA in 2015 ”