Roth IRA

Online Guide to
Roth IRA Accounts

Learn How to Invest with Elliott Wave Analysis
roth ira
Roth IRA (n. - definition) - a retirement account funded by nondeductible contributions in which growth and distributions are generally tax free to eligible participants.
roth ira


Retirement Plan
Guides Online:

401a
401k
401k Simple
403b
412i
414(h)
457
457(f)
Defined Benefit Plan
IRA
Money Purchase Pension Plan
Profit Sharing Plan
Roth IRA
SEP
Simple IRA
Teacher Retirement


Financial
Guides Online:

401k Rollover
Cafeteria Plan Sec 125
Charitable Foundation
Charitable Trusts
Deferred Compensation
Donor Advised Funds
Elliott Wave Analysis
ESOP
Estate Planning
Fee Based Financial Planning
Hedge Funds
Investment Services Advice
Margin Trading
Money Management
Money Market Savings Account
Mutual Fund Investment Advice
Mutual Funds
Mutual Funds at NAV
Omnibus Account
Payroll Deduction
Pooled Income Fund
Prime Brokerage
Roth IRA Conversions
Rule of 72
Stock Trading
Systematic Trading
Tax Exempt Money Market
Tax Free Mutual Funds
Variable Annuity
VEBA


Advisory Services:
College Plan Advisor
Elliott Wave Advisers
Long Distance Plan Advisor
Mortgage Loans Advisor
Retirement Plans Advisor

by Retirement Plans Advisor

How should you manage your retirement money in a BEAR Market?

  • Roth IRA - Available as of January 1998.

  • A Roth IRA is a retirement account whereby individuals for the tax year 2006 can put up to $4000 (non-deductible contribution) per year of earned income into the plan. While in the plan, asset growth, dividends and interest are not taxable, and monies withdrawn from the plan are TAX FREE under certain conditions.

  • Starting in 2002, a catch up Roth IRA contribution provision became available for individuals over fifty (50) years of age. For the year 2006, there is a $1000 catch up contribution allowed.

  • A Roth IRA account can be established by most individuals regardless of their age who have earned income below a certain specified threshold.

  • A Roth IRA account can be established by individuals who participate in various company, agency or not for profit retirement plans: SEP IRA, Simple IRA, 401k Plan, 403b Plan, 457 Plan, etc.

  • A full $4000 per person NON DEDUCTIBLE Roth IRA contribution limit applies for each working couple if joint income is below $160,000 and below $110,000 for single filers.

  • Both a tax deductible Individual Retirement Account contribution and a non-deductible Roth IRA contribution are allowable, but the combined total contribution cannot exceed the Roth IRA limit of $4000 per year.

  • Both a husband and a wife can each have their own account.

  • Dividend, interest and capital gain growth within a Roth IRA account is not taxable and monies eventually removed from the account are tax free if the account is owned at least five (5) years and the owner is over 59 1/2 years of age.

  • Unlike a traditional Individual Retirement Account there is no minimum Roth IRA distribution or Roth IRA withdrawal requirements after age 70 1/2; hence, a Roth IRA account can be held as long as desired and it can be passed on to one's children or other heirs on an income tax free basis. Estate taxes, however, might apply (consult your tax advisor for details).

  • At any age, after the account is opened for at least five (5) years, one can take a lifetime maximum Roth IRA withdrawal of $10,000 (contributions and earnings) without paying taxes or penalties for a first time home purchase, which might or might not be for the account owner.

  • At any age, for any reason, one can take a Roth IRA distribution of the amount of funds contributed (not growth) without paying tax or penalties.

  • Various mutual funds, variable annuity, stocks, bonds, equity indexed annuities, fixed annuities, bank cds and other investment choices are available for funding these types of plans.

  • Variable Annuities have internal expense charges, administrative fees, and mortality expenses which should be fully reviewed before investing. Most Variable Annuities, (excluding NSC Variable Annuities) typically have declining surrender charges which will generally apply should the contract be totally surrendered over the first several years. Please see annuity company prospectus for more details.  Investing in stocks, bonds, mutual funds and variable annuities does not guarantee a profit. All of these investments can lose money. All Mutual Funds, Variable Annuities and Variable Life Insurance policies are offered by prospectus ONLY. For complete information, including charges and expenses, obtain a prospectus, and read it carefully before you invest. Mutual Fund, Variable Annuity and Variable Life prospectuses are available directly from the issuing companies, is included when product information is requested, and in some cases, they can be downloaded directly from the issuing company's internet website. The tax deferral characteristic associated with variable annuities is not needed when used in an account that is by definition tax deferred (qualified retirement accounts) and, according to some sources, variable annuities generally have higher fees and internal expenses than mutual funds. Systematic and dollar cost averaging within Mutual Funds, Variable Annuities and Variable Life insurance policies does not assure a profit and does not protect against loss in declining markets. It involves continuous investment in securities regardless of fluctuating prices and the investor should consider his or her financial ability to continue purchases through periods of low price levels. Investing in stocks, bonds, mutual funds and variable annuities does not guarantee a profit. All of these investments can lose money. Stocks, bonds, mutual funds and variable annuities are not FDIC insured.



Insurance
Guides Online:

Annuity Bonus
Annuity Fixed
Annuity Equity Indexed
Annuity Immediate
Business Continuity Insurance
Buy Sell Agreement
Charity Insurance
Common Remitter Service
Company Insurance
Equity Indexed Universal Life Insurance
Executive Insurance
Health Insurance
Health Savings Account
Insurance Product Guide
Key Man Insurance
Long Term Care Insurance
Medical Savings Accounts
Medicare Supplemental Insurance
Mortgage Insurance
Premium Finance
Return of Premium Life Insurance
Split Dollar Insurance
Term Life Insurance
Universal Life Insurance
Whole Life Insurance
Worksite Insurance Plans


Online Insurance
Quote Comparisons:

Free Life Insurance Quotes
Life Insurance Calculator
Low Cost Life Insurance
Term Life Insurance
Term Life Insurance Quotes
Term Life Insurance Rates


College Planning
Guides Online:

529 College Saving Plans
Education IRA
College Financial Aid
FAFSA & Definitions
Financial Aid Programs
Financial Aid Strategies
Scholarships - Loans
State College Aid Agencies


Mortgage Loan
Guides Online:

Adjustable Rate Mortgages
Fixed Rate Mortgages
Home Equity Mortgages
Interest Only Mortgages
Reverse Mortgages

Copyright © 1998-2007. Roth IRA Retirement Account Information Guide. All rights reserved.

Elliott Wave . Quote Life Insurance Term . Discount Long Distance Rates . Low Cost Life Insurance . College Loan and Scholarship Guide . Term Insurance Life Quote . Mortgage Loan Refinancing Guide . Quote Insurance Life Term . Life Insurance Quote Term . Money Management . Insurance Online Information . Retirement Planning . Quote Insurance Term Life