Roth IRAs [Podcast]

William Roth created the Roth IRA in 1997 as a tax-free retirement investment. This investment will grow tax-free and can’t be taken out until you have reached 59 1/2 years of age. There are no RMDs (Required Minimum Distributions), so you can wait and let that money grow. If you do this, you can keep making contributions up until 70 1/2 years old and sometimes beyond, if you are still working.

Some pros to a Roth IRA:

  • Earnings grow tax-free

  • Can be protected from creditors

  • Tax-free income in retirement

  • Transfer to spouse/heir without income tax

Some cons to a Roth IRA:

  • If you withdraw before 59 1/2 years old, you pay income tax + a 10% penalty

  • Can’t be used as collateral/asset

Are you wondering if a Roth IRA is right for you? Meet with us and we can discuss different ways that Roth IRAs can be used with your situation, as well as assessing if you are distributing your income to the correct tax buckets to get the most benefit.

To learn more about Roth IRAs, read our corresponding article “Roth IRAs: Everything a Doctor Needs to Know Before Investing.”

You can also check out the posting here, featured on Brown Emergency Medicine, or on iTunes.