Brush up on the Roth IRA
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
Which isn’t completely true. I mean, occasionally I drop by when I manage to sneak out of the nonstop frat party over at Going Concern, but I’m mostly a wallflower over there. I’m happy to say that I’ve been given express permission (or explicit orders, if you like) to wander over here to AccountingWEB more often.
Why is that, you might ask? My job is to replace the irreplaceable Gail Perry as Editor-in-Chief. What does that mean? I don’t really know! I think it’ll be fun getting a feel for things, throwing in my own thoughts here and there, and listening to the discussions you’re having about the accounting profession.