• http://lifetuner.org Keith Morris

    Thanks, Mark! Don’t forget about Roth IRA conversions in 2010! This was a hot topic for discussion over at LifeTuner. Check out this page for additional thoughts:

    http://www.lifetuner.org/topics/48-retirement/discussions/379-converting_to_roth_ira

    • Mark Riddix

      I checked out the page. Good insights!

      • Tjridenour

        my dad passed and he had a ira we got a letter in the mail he had it for 25 yr how much does it grow

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  • http://www.yourfinances101.com/blog David/Yourfinances101

    If you qualify, the Roth IRA is one of the best retirement vehicles out there–by far.

    • Mark Riddix

      I think so too David.

  • http://wisefinish.com Wise Finish

    Great article about Roth IRAs – I would be interested to see them compared & contrasted with the Roth 401(k)

    • Mark Riddix

      Great idea! Look for that in the future.

  • http://thelastminuteblog.com Duncan

    Hi there,

    Thank you for for using my photograph in this post!

    Please attribute the photograph to Duncan Rawlinson and link to me @ http://www.TheLastMinuteBlog.com

    Thank you.

  • http://thelastminuteblog.com Duncan

    Hi there,

    Thank you for for using my photograph in this post.

    Please attribute the photograph to Duncan Rawlinson and link to me @ http://www.TheLastMinuteBlog.com

    Thank you!

    • Erik Folgate

      Hey duncan, taken care of, thanks!

  • http://blog.budgetpulse.com craig

    I have a Roth and maxed it out in my first year and plan to do the same in the second year. I really like it a lot and recommend it to people.

  • http://www.creditopia.com Ryan

    Having recently taken more control over my Roth IRA I’m taking action now to steer my investments personally vs. having to rely on a single retirement fund. I’m already seeing returns from my last position and will never go back to a single fund. THX..

    • Mark Riddix

      You’re welcome.

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  • http://www.hervssmartmoney.blogspot.com Chris

    Great article. I wrote an article on my blog not too long ago comparing a Roth IRA to a 401k, and crunched some numbers as well. Give it a read and let me know what you think.

    • Mark Riddix

      I will Chris.

  • http://madsaver.com Mac

    I’ve heard nothing but good things about having a Roth IRA. Take the money out tax-free? Sign me up! Now just to find some money to add to my poorly funded Roth. But thanks for the reminder, I’ll have to reevalute my budget for ’10.

  • Mike

    Great Article, My question is if I have $500000 in my Roth and I pass away and I leave it to my children and Grand Children. What are the tax implications for them???

  • Lbwetherington

    Mark. I’m confused when I read under the benefits and restrictions. If I put money in a Roth IRA, can I withdraw the money that I put in only without penalty or fees, or taxes? I realize if I withdraw the interest earned I would be subject to some sort of cost. I was thinking of using the money I put in to start a business that could be great income for my retirement years.

  • http://www.rothira.org/ Scott Grinas

    Mark, great points here but it would have also been nice if you could have commented on self directed roth ira’s and how some people are using them to purchase real estate. I realize this isn’t a common practice but none the less it seems some savvy investors are doing it?

  • Mike

    Please put dates on your articles. Retirement and tax laws change all the time.

  • SilverStreak

    Mark, I have a question for you. I hope you can help me. I am 60, will be 61 yrs old in June. My husband is 63 and on disability. I am unemployed. We went through a bankruptcy in 2007.
    We have no home. All we own is a car. My husband’s income is about $1500 a month and I get a small $344 pension from Michigan Public Schools. I do not have any other income other than substitute teaching 2 or 3 times a month, $100 per day.

    As of June I will have access to $14,000 annuity from Nationwide. If you were me, what would you do with that money? Roth IRA? Start one for our grandchildren? Savings bonds? Gold?
    We would like it to earn as much interest as possible but, considering our living situation, we may need it if our car dies or if one of us has extensive medical bills or….?
    Right now we trade our landlord handyman type work for rent but that won’t go on forever either.
    We have had no real home since 2008 when walked away from our home in Arizona.

    Do you have any advice for us?

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  • http://www.retiresimply.com/ Roth IRA

    I just stumbled across this thread. I’m not sure when it was posted but I assume it has been awhile judging by the income limits posted. The Roth IRA income limits for 2011 were $106,999 for single filers and $168,999 for married filers. Above those amounts, the amount you can contribute is proportionately reduced.

    @Lbwetherington – Yes, you can withdraw your contributions penalty free. Your deposits to a Roth IRA are after-tax and thus you have more flexibility.

    @SilverStreak – I’ll wait for Mark to answer this question fully since it that is who you asked. I’d just like to add that although your situation is not ideal, remember that the number one goal at your age is capital preservation first. With that said, you never want to take on more risk in your situation. You can however, look at investments like investment grade & high yield mutual funds. These are aggregate corporate bond funds. Some asset classes have had much less risk, and much greater returns, than the stock market over the last 20 years. Of course, you’d get the same liquidity as with a normal mutual fund. Other than that, look at diversified products.

    Roth IRAs may not be much of an option for you. It appears that your earned income is from your teaching activity only? Pension and disability income will generally not count toward the Roth IRA income requirement. You would only be able to contribute the amount of your teaching income.

  • Tishfaber

    Er, how did the Roth get named after a guy named Ross? Did he have a lisp…?!

  • http://issuu.com/treydowner/docs/currency_forward_contract_-_a_monetary_safeguard_f Ariel Monde

    I make too much to put into a Roth, so I contribute to a non-deductible IRA and converted it to a Roth…congress began allowing this in 2010 and until they act, we can continue to convert to a Roth.

  • http://www.coralseamercantile.com.au Coral Mercintile

    Roth has an extra advantage if you think your taxes will probably rise in the future, since you’re paying now rather than later. (Of course that’s a disadvantage if you think your taxes will fall. Note that your own tax bracket might be lower in retirement than it is while you’re working, even if tax rates in general go up.)

  • http://www.fifocapitalcoralsea.com.au/ fifocoralsea

    If you are able to put 10% into a traditional 401k I think you may find it difficult to put 10% of after tax money into a Roth 401k. What if the comparison is done differently showing you can afford to put 10% in pretax now but only 8% into a Roth? Even though you are taxed more when you withdraw doesn’t the lower amount put in and compounded over time at least equal that difference?

    This is what confuses me most about this.

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