Today’s tax rates for all income levels are low and expected to increase. By contributing today you won’t have to worry about the unknowable future.
Access to contributions without penalties
If you open a Roth IRA with $500 you will be able to withdraw that amount at any time without a penalty or tax issue. This makes a Roth IRA a good place to start an emergency fund.
No required distribution
Traditional IRA’s require you to start withdrawing (and paying taxes) by the time you are 70 ½. That’s not the case for Roth IRA, if you don’t need the funds it can potentially continue to grow for your beneficiaries.
Roth IRA Cons
Income limitation to contributions
You might not be able to contribute if you have a high income
The only downside I can see as a professional advisor is a relatively minor one. The contributions are simply nondeductible and therefore you pay them with after-tax dollars. Having said that, the major advantage to the Roth IRA is that any increase in value will be able to be withdrawn at some future point in time without any taxation. Although advisors will disagree on what I am about to say, this is the type of account where our clients speculate. In other words, if you can put away $5,000 and/or $6,500 depending on your age into a Roth IRA and if you can turn that money into $50,000 or $100,000 or more, I can't think of a better place for speculative capital gains to be achieved. Suffices to say that you need to be able to afford to take this kind of risk but it should not be done with the entire Roth account. Another tremendous advantage of the Roth account is that it can be passed on to beneficiaries and they will continue to have the benefit of tax-free withdrawals for life. Having said all this, never underestimates Congress's ability to change their mind about something that's almost too good to be true. If they do change the rules regarding Roth IRAs they may make the rules effective after a given date and grandfather previous contributions and earnings. This is simply my personal speculation but I for one do not trust any of our politicians to do anything other than the what's in their best interest rather than ours. I apologize for this political position. Hope this helps and good luck
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