2006-09-05 07:50:27 · 7 answers · asked by Anonymous in Business & Finance ➔ Personal Finance
you don't have to pay taxes on the money you take out of the roth ira. 401k is something different. you don't have to pay taxes on what you put into that but you do have to pay when you take it out later. they have different rules. one of the big advantages besides taxes is that employers often match part of your contributions.
2006-09-05 07:55:21 · answer #1 · answered by Sufi 7 · 0⤊ 1⤋
You pay taxes on the money when you put it in, but it's tax free with what ever it's earned when you retire, I think the age c/o is 55. so in 20y or so, you got allot of money you can take out tax free. the c/o per yaer is pretty low,, something like 2700 a year though.
2006-09-05 14:56:00 · answer #2 · answered by Anonymous · 0⤊ 0⤋
TAX FREE GROWTH....yeah baby.
Imagine that you're 60 years old with $500k in an account and there are absolutely NO taxes due on that money.
If for no other reason, it will allow YOU to control your future tax rate without limiting your retirement income.
2006-09-05 15:43:11 · answer #3 · answered by derek 4 · 1⤊ 0⤋
DO IT. Don't think twice, Sign up and sock away at least 10 %. Your money will grow so fast
2006-09-05 14:56:24 · answer #4 · answered by Pam 4 · 0⤊ 0⤋
The contributions are taxed. Accumulated earnings are not taxed.
2006-09-05 14:57:15 · answer #5 · answered by Bostonian In MO 7 · 0⤊ 0⤋
You'll have retirement money since s.s is outta here
2006-09-05 14:53:11 · answer #6 · answered by Reggie 3 · 0⤊ 0⤋
they will match up to a certain percentage that you put in. it is really helpful. my daughter is 21 and has hers started. every year you get a raise add another one percent to it.
2006-09-05 14:56:57 · answer #7 · answered by maxossa1 2 · 1⤊ 1⤋