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.

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