“I think the future is going to be a future of higher taxes.,” said Royer. “The more tax-free wealth you can create the better you are going to be in the future.” If your employer has a Roth IRA option Royer says you should start investing your retirement into one now. Not all companies have the ROTH option but he recommends checking with your HR department. If you chose to do that you will have to pay taxes on the money to move it over into a Roth IRA. However, once you move it there it’s tax-free which Royer says will save you money in the long run. Source www.wlfi.com
Royer says many people who have retirement savings in an IRA or a 401k move that money into a Roth IRA through a Roth Conversion. “With a Roth IRA, you are taxed now but what ends up happening is it grows tax-free,” said Royer. “So when you put that money in you don’t get the tax deduction but it grows tax-free.”
“A Roth conversion is where you take that IRA and you cleanse it of its taxes,” said Royer. “You pay the taxes at current rates which are lower and you take that from the IRA and you convert it into a Roth.” That’s why financial expert Nick Royer says if you can, invest your retirement money into a Roth IRA account.
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