How do I start a Roth IRA?

Question

I think its called Roth?? Anyway I wanna start saving for when i get older now....do they take money our of paychecks, like SS?

Answer 1

Good for you to start thinking about saving. Assuming you are under the maximums for your earnings (something like $95K for a single person, $150K if you are married filing jointly), you can start one with any brokerage firm (ETrade, Schwab, Scottrade, etc.). Right now you can put in $4000 per year max assuming you are under 50. It is all after-tax money that you put in yourself, so it is not taken out of your paycheck by your employer. The beauty of the Roth is that when you eventually take it out (age 59 1/2 or later), you get it tax-free. All your gains are not taxed.

Below is a link to an unbiased site about IRAs in general. Good luck!

Answer 2

Nope, but you can establish a Roth IRA at your local brokerage firm. Within the IRA you can own stocks, bonds and mutual funds (among other investments). You can contribute whatever amount of earned income you have made to it up to $4,000 for 2006-2007. The income you put into it is not taxed upon putting it in because it has already been taxed as earned income at the federal level. A good place to open one up with is Vanguard. The link is www.Vanguard.com. Good luck!

Answer 3

H & R Block is the way I did it.