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Roth IRA

Self Directed Roth IRA

Totally Tax-Free

The Roth IRA offers individuals the ability to withdraw their proceeds 100% tax-free once they reach retirement age. The Roth IRA is available to individuals whose gross annual income is less than $100,00 in the year of the contribution. This limitation is applied to initial contributions as well as traditional IRA conversions. The contribution is taxed only once at the time of the investment based on the income tax bracket of the IRA holder. 

The Roth IRA contributor will not receive a tax deduction at the time of the qualifying contribution, but distributions from a Roth IRA are entirely tax-free.

When is a Roth IRA advantageous? 

If you qualify for a self directed Roth IRA contribution, you should evaluate your personal retirement strategy. The Roth IRA can be very beneficial if you determine that you have sufficient time to grow your account prior to retirement. You need to evaluate your circumstances and determine if you will benefit sufficiently from the tax consequence at the time of the contribution. Ask yourself the following:

  • Do you have sufficient time to recoup the tax consequence?
  • Do you have an aggressive plan for IRA investments that will offset the tax consequences at the time of the contribution?

Which is better for you—Traditional IRA or Roth IRA? Click here for more information.