THE ROTH IRA
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The Roth IRA is a newer type of individual retirement account. The principal difference between the Roth and a traditional IRA is that while contributions to a traditional IRA are tax-deductible (except in certain cases) and withdrawals are taxed, contributions to a Roth IRA are taxed, but qualified withdrawals are not taxed. For some investors, the inability to deduct their contributions is a tiny price to pay for tax-free withdrawals that could be quite substantial after years of having grown in an account. Of course, as in the traditional IRA, the earnings of a Roth are tax-free while they accumulate.
The Roth IRA tutorial will take you through four areas:
- How You Can Fund a Roth IRA
- ROTH IRA CONTRIBUTION RULES
- When Are Withdrawals Allowed from Roth IRAs?
- ROTH IRA ROLLOVER RULES
- SUMMARY OF THE ROTH IRA
Let us start with how you may fund your Roth.