- The Roth IRA was created by Senator William V. Roth, Jr. in 1998 as a result of the Taxpayer Relief Act. This IRA is unique in that if you meet all of the requirements all earnings are tax free when you or your beneficiary withdraw them. There are no deductions for contributions, but once it is time to make your withdraw you will not be taxed.
How do you determine if this is the right investment plan for you? It depends on your personal situation and what assumptions you want to make about the future. Ask yourself these simple questions:
- When would you plan on withdrawing money from your Roth IRA?
- What will your anticipated tax bracket be at that time?
- What earnings can you anticipate in the interim?
Let us help you decide if this is the best investment option for you.
