Montana Roth IRA

A Montana Roth IRA can open the door to more financial opportunities after you retire. Instead of paying taxes on the distributions you collect from a Roth IRA, you may qualify to use 100 percent of your distributions tax free, as long as you meet the necessary qualifications. With a Roth IRA plan, you can have the flexibility and freedom you need to pursue your dreams of a prosperous retirement in Big Sky Country.

Known for its wide open spaces and striking natural features, like the Rocky Mountains and Yellowstone National Park, Montana invites visitors from around the world to explore its abundant resources. The state has traditionally based its economy on ranching, farming, mining and the lumber industry, but education, government and tourism also feature prominently. Whether you live in Butte, Billings, Helena or Kalispell, you can make more of your financial investments in Montana with a Montana Roth IRA.

Benefits of a Roth IRA

The tax benefits of a Montana Roth IRA have made this investment strategy increasingly popular among investors of all ages. Young professionals in their 20s and 30s can start building a substantial nest egg with their post-tax income by opening a Montana Roth IRA. Older adults who got a late start on retirement planning or who simply want to accelerate their investment goals can augment their portfolio with a Roth IRA. Investors over 50 can contribute $6,000 per year to their account, compared to the $5,000 annual maximum for younger adults. [1]

With a traditional Individual Retirement Account, your contributions grow at a tax deferred rate. When you contribute funds to a traditional account, the money comes out of pre-tax income, and you may claim a deduction for this money. By comparison, a Montana Roth IRA grows at a tax free rate, because contributions are made from income that has already been taxed. When you reach the age of 59 1/2, you may collect distributions from a Roth IRA without penalties, as long as you have had the account for at least 5 years.

After you reach the official retirement age, you may decide that you aren't ready to stop working. These days, many retirees in Montana and other states continue to work for personal or economic reasons. With a Montana Roth IRA, you can continue to contribute to your account for the rest of your life without taking distributions, if you choose. Many account holders use this strategy to leave a legacy to their loved ones in MT.

Retirees aren't the only residents of MT who can benefit from a Montana Roth IRA. First time homebuyers can qualify for an early distribution without the standard 10 percent tax penalty if they are using the funds to build, rebuild or buy a first house. Individuals and families who have incurred large medical bills that aren't covered by insurance may qualify for an early distribution if their bills exceed a certain percentage of their adjusted gross income.

Roth IRA Retirement Strategies

Montana is a popular destination for active retirees who enjoy hunting, fishing, camping and hiking. To make the most of your retirement years in MT, build a portfolio that provides the right balance of stability and earning potential. If earning at a steady rate through stable investments is your priority, consider a portfolio that emphases cash assets and low risk bonds. If you want to maximize your earnings and you're able to tolerate a higher level of risk, talk with your Montana investment advisor about including more volatile stocks in your portfolio.

Your financial resources, your level of risk tolerance and your projected time frame for retirement will help you develop an effective investment strategy. If you're investing for the long term, you may be more willing to take risks on stocks with a high earning potential. Over time, these volatile investments can pay off, but you must be willing to put up with the ups and downs of the market. If you're getting a late start in your planning and you want to catch up, stocks or mutual funds may boost your earnings.

Cautious investors may prefer the most stable assets available when they're building a portfolio. Cash equivalents, like savings accounts, treasury bills and CDs, are among the safest investments available. These funds are often guaranteed by the government, and when included in a Montana Roth IRA, cash equivalents bring security and stability.

Building a secure, fulfilling life in Montana is the goal of many investors in the Treasure State. Consider your goals for the future as you explore the benefits of a Montana Roth IRA. The more you know about this innovative, flexible investment vehicle, the better equipped you'll be to choose an account that will provide the growth potential you're looking for.

http://www.irs.gov/publications/p590/index.html 01/11/2012

Roth IRA

YOUR GUIDE TO
Roth IRA
INFORMATION & RESOURCES