Brush up on the Roth IRA

Posted by accountingweb on Dec 17 1999 100 printer friendly

What are the tax-saving advantages of the Roth IRA?

This relatively new savings vehicle is ideal for the younger set because it enables a person to invest in the long-term for retirement, with the money growing on a tax-free basis.

Even though most everyone qualifies for a typical IRA, the Roth is better for a younger investor because money grows tax-free rather than tax-deferred. Even without the "write-off," long-term productivity may be more than the yearly deduction.

To qualify for the Roth, the person is required to have earned income from an employer with an adjusted gross income less than $95,000 per year. If the AGI is greater than $95,000, the amount contributed to a Roth is not included.

Taxpayers have until April 15, 2000 to make a 1999 contribution to a Roth IRA.

Voice of the Editor

What would you do if one of your clients won the lottery? We asked several accountants to weigh in with their advice for the lucky Powerball winner, and the tips we received are useful for anyone who receives a windfall, whether it's a lottery win, an inheritance, a big bonus on the job, or a killing in the stock market.

This Week on AccountingWEB

CPAs Mira Finé, Scott Hitchcock, Rob Keasal, Kathy Scorcio, and Ken Travis offer ten pieces of financial advice for the newest Powerball winner.

Hang Bower of BDO USA and Dan Black of Ernst & Young share their perspectives on why their firms made the Best Places to Work for Recent Grads 2013 list.

Herbein + Company, Inc. firm members talked with AccountingWEB about their year-round employee wellness program.

Bill Walter of Gross, Mendelsohn & Associates and Harold Gaar of TravisWolff LLP weigh in on mobile technology use while employees are at work.