what is it, what does it do, how does it work, etc
2007-01-21 18:09:08 · 4 answers · asked by Anonymous in Business & Finance ➔ Personal Finance
It's a retirement basket where you can put stocks, bonds and even log physical investments such as real estate and baseball cards.
You can invest up to $4,000 a year now, but there is a chart where it will increase.
The money going in is taxed, but the money going out is not. At 12% gains annually starting at 18, it's possible to have been taxed on $90,000 at 65 rather than on the $1 million that it grew.
Unlike a regular IRA, there is no limit (on the standard IRA it's 72 1/2 with a calculated minimum) when you have to take the money out. If you leave the money to somebody young, they can keep it until they turn 35 when they have to start withdrawing the money tax free.
Most brokers, at least online, offer them.
2007-01-21 18:24:16 · answer #1 · answered by gregory_dittman 7 · 0⤊ 0⤋
IRA stands for Individual Retirement Account. A Roth IRA allows you to deposit money on a pre-tax basis. Since your money is already taxed before being placed in the account, capital gains (appreciation) and dividends (if reinvested) are not taxed again when you begin withdrawing money.
This is perhaps the best retirement account for individuals on an after-tax basis. I would personally check out Winkipedia to find out more, or there may be more specific information on the SEC's website.
2007-01-22 14:15:21 · answer #2 · answered by WildCat Guy 2 · 0⤊ 0⤋
It is a retirement plan where money is deducted from your paycheck and invested in stocks in hopes to make you money so that when you get older you can live a happy life with out the worries of financial burdens.
Good luck.
2007-01-22 02:13:34 · answer #3 · answered by ___ 5 · 0⤊ 0⤋
The best website for questions like this is http://www.bankrate.com I saw it on oprah. Good Luck.
2007-01-22 02:13:46 · answer #4 · answered by Anonymous · 0⤊ 0⤋