The idea is that you use after tax money to fund a retirement account and any earnings on the account are distributed after age 59 1/2 without the need to pay taxes. This type of account was made available for middle income families.
According to www.ehow.com, "Named for its legislative sponsor, William V. Roth Jr., Republican senator from Delaware, the Roth IRA became available in 1998 as part of the Tax Relief Act of 1997."
Are you using your ROTH< account wisely? Be sure to read Can You Contribute to Both a ROTH IRA and a ROTH 401k? for the 2013 contribution limits. Thanks for visiting and we will be sure to provide new information daily.
This post was reposted from http://finlit.biz/retirement-2/are-you-utilizing-a-roth-retirement-account/, originally written on February 12th, 2013.
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