Individual Retirement AccountsRoth Individual Retirement Accounts

Roth IRAs

The chief advantage of the Roth IRA is the ability to have investment earnings completely escape taxation. This advantage comes at a price. The Roth IRA provides no deduction for contributions, but instead provides a benefit that isn't available for traditional retirement accounts: if you meet certain requirements, all earnings are tax free* when you or your beneficiary withdraw them. Other benefits include avoiding the early distribution penalty on certain withdrawals, and eliminating the need to take minimum distributions after age 70 1/2.

*Consult your tax advisor regarding potential tax savings.