Learn about the Roth IRA and how you can invest it.
A Roth IRA is another type of Individual Retirement Account (IRA). With a Roth IRA contributions to the account are not tax deductible, but qualified withdrawals from the account are not taxable either. A qualified distribution from a Roth IRA is a withdrawal made after the taxpayer attains age 59 . Also a Roth IRA is qualified if it is made to a beneficiary after the taxpayers death, made because the tax payer is disabled, or made by a first-time homebuyer to acquire their original residence.
Distributions from a Roth IRA can be made after the owner reaches 70 . Currently with a Roth IRA there is an income ceiling where you cant invest in a Roth IRA if your single and your adjusted gross income is higher than $95,000, or $150,000. The amount you can contribute to a Roth IRA reaches zero for incomes of $110,000 for single people and $160,000 for those who are married. There are proposals to remove the ceiling. A new popular trend with a Roth IRA is to take the funds out and invest them into real estate, businesses, tax liens, and more. An IRA called a self directed IRA is created, and an LLC (Limited Liability...