Where Can I Get Advice on Roth IRAs?
Investment planning is a complicated subject, and when it comes to preparing for your retirement, you don't want to take chances on your financial decisions. Adding a Roth IRA to your retirement portfolio gives you the potential to enjoy tax free distributions from this flexible retirement account after you reach the eligible retirement age. Before you retire, you may qualify for early distributions without tax penalties if you're buying a first primary residence, paying off large medical bills or covering the costs of a disability.
The conditions and restrictions on Roth IRAs can be difficult to interpret, and many investors need guidance on how to make the most of these funds without incurring tax penalties and understand Roth tax advantages. A knowledgeable financial advisor can be a valuable source of information when you're opening a new account, rolling over a 401k to a Roth IRA or conversion of a traditional IRA to a Roth. Look for an experienced, reliable investment advisor or retirement planner whose background fits your financial goals.
Basic Information
When you're looking for basic information about a Roth IRA, such as maximum income or annual contribution limits, you can find the answers you need from the Internal Revenue Service. The IRS establishes the rules, restrictions and requirements for Roth IRAs and other retirement accounts. If you want to know how old you must be before you can withdraw distributions without a tax penalty, or how much the tax penalty will be if you make an unqualified distribution, the IRS has the final word on these questions.
The IRS posts extensive information about Roth IRAs on its website, and you may contact an IRS representative by phone if you have specific questions. You can also find documentation from the IRS at your public library. When you consult IRS documentation, make sure that you refer to the current tax year for details. Restrictions and requirements often change from year to year; for instance, 2012 maximum income limits for a Roth IRA have increased, allowing individuals and couples with higher earnings to take advantage of this investment option.
If you have access to the internet at home, you can quickly find an abundance of material about Roth IRAs online. However, not all of this information is reliable, accurate or up to date. For basic questions about Roth IRAs or reviews of investment products, look for reliable, objective financial websites that are not selling or promoting specific investment options. When searching for investment advice, it's best to consult a professional who can take a personalized approach to your finances.
Finding a Financial Advisor
A trustworthy financial advisor can provide helpful, knowledgeable advice about Roth IRAs. If your questions go beyond the basics and you want to ask questions that specifically pertain to your own retirement plans, your best bet may be to talk with a financial professional. An investment advisor or retirement planner will review your financial situation with you to help you determine which retirement solution will help you meet your investment goals.
Retirement planners have specialized training and experience in helping their clients build an income for the years when they're no longer working. A retirement planner can evaluate your current savings strategies to determine whether you are on track with your goals for retirement. Qualified planners can develop accurate projections of how much money you'll need to contribute to a Roth IRA account and other investment accounts to build the savings you'll need for the retirement you envision. Talk with a consultant who can offer individualized guidance on this important investment opportunity.
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.
