Delaware Roth IRA

Comparing a Delaware Roth IRA to a traditional IRA may convince you that adding a Roth IRA product to your retirement planning strategy is a wise choice. A Roth IRA offers tax advantages that are not available through a traditional account. The flexibility and versatility of a Delaware Roth IRA make this investment option attractive, especially to single DE professionals and couples who are looking for ways to secure a comfortable retirement.

Before you retire, you can take distributions from a Delaware Roth IRA, provided that you have held the account for at least 5 years. Although your earnings on your contributions are subject to income tax, the contributions that you've made may be withdrawn tax free. Once you reach the age of 59 1/2, you will qualify for tax free distributions. First time Delaware homebuyers may withdraw funds up to a specified limit without tax penalties. [1]

Roth IRA Income Limits

Known as The First State, Delaware was the first colony to ratify the Constitution of the United States in 1787. Today, Delaware is one of the most affluent states in the US, and many residents enjoy prosperous incomes through jobs in government, pharmaceutical and chemical companies, education or technology. If you are considering a Roth IRA, review the maximum income limits carefully. If your income exceeds the limits established by the Internal Revenue Service in a taxable year, you may not be eligible to contribute.

As of 2012, the upper Modified Adjusted Gross Income (MAGI) limit for contributing to a Delaware Roth IRA for a married couple filing jointly increases to $183,000. If you have been widowed, you may qualify for this income limit, as well. A single adult or head of household, or a married adult who is filing separately and did not live with his or her spouse during the year, may not earn more than $122,000 per year. If you are married and filing separately and you lived with your spouse during the year, your MAGI may not exceed $10,000. [1]

Income limits on a Delaware Roth IRA may not apply if you convert funds from a traditional to a Roth account. In the conversion process, you will be taxed on the funds that you are converting. However, if you earn a high income in DE and you are otherwise ineligible to contribute to a Roth IRA, the tax obligations may be worth having the opportunity to contribute to a Delaware Roth IRA. You must observe the annual contributions established by the IRS once you have converted your account.

Contributing to a Delaware Roth IRA lets you maximize the value of your DE income through a portfolio of investments that reflect your financial goals and your level of risk tolerance. If you're a conservative investor, you can ensure steady growth through low risk bonds, cash equivalents or mutual funds. Delaware investors who are willing to take risks on volatile stocks may choose assets that promise more substantial growth over time.

Catching Up on Retirement Investments

Although most working professionals in Delaware are concerned about retirement planning, it's not always possible to start building your nest egg in your 20s, 30s or even in your 40s. For some investors, an adverse event like the loss of a job, the death of a spouse, a divorce or a bankruptcy may result in a loss of retirement funds. Other professionals may not have the financial resources available to contribute to a Delaware Roth IRA until they are in their 40s or 50s.

If you are under the age of 50, the maximum amount you can contribute to your account each year is $5,000. [1] At the age of 50, this amount increases to $6,000 per year. Higher contributions allow you to catch up on your retirement goals if you have fallen behind. Because your contributions are deducted after taxes and there's no mandatory age when you must start withdrawing your money, you may continue to allow your funds to grow for the rest of your life. If you plan to work into your 70s and beyond, this option can be extremely valuable.

It may be ideal to begin saving for your senior years as soon as you start working. In reality, however, many single adults and couples in Delaware get a late start or encounter setbacks that delay their goals. With the help of a knowledgeable financial professional, you can still plan for a more secure future by accelerating your savings strategies.

To find a Delaware Roth IRA that's appropriate for your financial profile and risk tolerance, request information from several reliable providers. With access to the internet on your personal computer, you can quickly compare quotes without leaving your home or office. Our convenient online request form makes it easy to review your options in a secure, comfortable setting. 01/10/2012

Roth IRA

Roth IRA

Did you Know?

The Roth IRA is a retirement account that is funded with post-tax income. You pay taxes on your income this year as you would during any year and invest the funds in the Roth. Since taxes have been paid before investing you never pay income taxes on those funds in the future.


Advisors In delaware

Peter F. Gaertner, CFP, CDFA, MBA
Peter F. Gaertner, CFP, CDFA, MBA
2961 Centerville Rd
Suite 310
Wilmington, DE 19808

Andrew  Rosen
Andrew Rosen
2200 Concord Pike
Suite 104
Wilmington, DE 19803

Richard K. McLaughlin, CFP
Richard K. McLaughlin, CFP
724 Yorklyn Road
Stone Mill Ste 348
Hockessin, DE 19707