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I am interested in purchasing a ROTH IRA. What are the benefits for having this type of retirement plan?

A ROTH IRA is a good plan of investment for retirement for some people. First of all, not everyone can contribute to a ROTH because of the IRS imposed income limits. Your tax preparer can help you determine if you qualify.

In short, there are several benefits of a Roth. These are:

  1. Money may grow tax free; withdrawals are tax free, also,
  2. There are no minimum required distributions to take at certain ages.
  3. If properly handled correctly, a ROTH left to heirs is tax-free. Do the proper estate planning to take advantage of this benefit.
  4. There is great tax flexibility in retirement by being able to diversify.
  5. They can help reduce or even avoid the Medicare surtax.
  6. A ROTH becomes a hedge against future tax hikes.
  7. At retirement, you can use your contributions at any time with no taxes or penalties.
  8. If you are older, you can continue to contribute to a ROTH as long as you work. In many cases, if you keep working, you can continue contributing to the ROTH.
  9. If you are younger, your income is likely to rise, thus allowing for more contributions to a ROTH and helping you better prepare for retirement.

One very important thing to remember is that the Minister’s Retirement Fund (as well as other 403(b) type plans) allow for a ROTH contribution. This could give a person the BEST of both worlds in investing for the future. Contact the MRF staff for more information regarding this subject to determine how it would benefit you.

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