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Roth IRA--pros and cons

Discussion in 'Money Matters' started by shravanthika, Jan 11, 2008.

  1. shravanthika

    shravanthika Senior IL'ite

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    Hi Ladies,
    Most of us here in US might have been aware of Roth IRA..So how have you benefitted so far...any tips and tricks?
     
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  2. Shobanag

    Shobanag Bronze IL'ite

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    Hi Shravanthika - from my personal experience, I have not been able to take advantage of ROTH-IRA due to fact that my husband and I both have 401(k) offered by our employers that we take advantage to its fullest extent. You can still participate in Roth - IRA but there are income limit phase outs - and hence no luck for us there. But if there are people out there who can take advantage of it, I would strongly encourage them to participate in it - due to tax advantages it offers.
     
  3. shravanthika

    shravanthika Senior IL'ite

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    Thanks for the info Shobana...

    So the money your going to invest is already taxed...but you dont pay tax for the earnings and investment amt later when you take it out(at retirement).Am I right?

    You can break the account at any time ...after 5 yrs...and you pay taxes and penalty only for your earnings...Am I right again?
     

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