Roth IRA: How, What, When

You should seriously consider investing in a *Roth IRA.

Simply put, a Roth IRA is a retirement account which is funded with your after-tax monies and which will not be taxed upon withdrawal after age 59-1/2. In 2021, an individual may contribute $6000 (or $7000 if you are age 50 or older) into a Roth IRA.

We LOVE Roth IRAs!

Here’s why:
• You can withdraw your contributions at any time – tax free!

• After age 59-1/2, you can take out the earnings from your Roth – tax free!

• There are no mandatory distributions from your Roth like there are with your traditional IRA.

• Your heirs will not have to pay tax on a Roth they inherit from you.

• And as long as you have an income and meet the income limits, you can contribute to a Roth IRA.

DO not invest in a Roth IRA until...

1. You have paid all your debt off except the mortgage.
2. You have a fully funded emergency fund.
3. You have set up a replacement asset account (aka the 5-year account) and are contributing to this monthly.

If you have not completed the above steps, we can help you reach these goals.

Comment below and let us know your plans!

*Note: there are income limits to qualify for a Roth contribution (2021): $140K for single filers and $208K for married, filing jointly. There is a “back door” contribution option to consider if you exceed the income limits.

We’ll help you evaluate if this is a good fit for you.