16th Feb 2010 by Daniel Cross, ChFC
A Roth IRA is a tax-advantaged retirement account that works opposite regular IRA's. In a Roth, money is taxed upfront, but is withdrawn completely tax free. This allows for some impressive gains in the stock market and has become the more popular retirement vessel. Like the regular IRA, there is still a 10% penalty for early distribution. There are income limits to the Roth as well: single filers up to $105,000 and joint filers up to $166,000. The maximum contribution in 2010 in $5,000.00 or $6,000 if over the age of 50.
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