Have you been looking for that missing piece of your retirement puzzle? If you are not investing into a Roth IRA, you don't know what you're missing. Many people don’t understand all the Roth IRA rules so it’s important to know how they work.
Roth IRA Limits
In 2011, the Roth IRA limits have remained at $5,000 for those under the age of 50. Over the age of 50, and you can put in an additional $1,000 for a grand total of $6,000.
Roth IRA Account Rules
With a Roth IRA you may invest in most type of securities, usually common stocks or mutual funds. A growing trend show more people investing into ETF’s (exchange traded funds).
Roth IRA Eligibility
As with all IRA, there are eligibility requirements and filing requirements prescribed by the Statute of the Internal Revenue Service. The biggest driving factor is income: you must have income to be able to contribute to a Roth IRA.
A Roth IRA The main advantage is its tax structure. Depending with whom a Roth IRA is established, it can be managed in creative ways, including investments in non-typical (self-directed IRA).
Roth IRA Phaseout Limits
The total contributions allowed per year to all IRA is the lesser of your modified adjusted gross income (compensation) and the amounts as mentioned below (this total may be split in May from a certain number of traditional and Roth IRA. Remember: there are difference between traditional IRA rules and the Roth IRA.
For 2011, the phaseout limits for filing single are $107,000 and completely phased out at $122,000. For married filing joint, it begins at $169,000 and completely phaseout at $179,000.
Where to Open a Roth IRA?
There are many different options when it comes to get started with tax free investing. The question remains: Where is the best place to open a Roth IRA?
