What is a Roth IRA? How does it work? Where can I set up an account? Any recommended sites on-line?

Answer 1

Virtually any bank or investment house can open a Roth IRA for you. The Roth IRA differs from the regular IRA in that you are contributing post-tax money, but once the money has been invested, you will never pay taxes on the account earnings when you withdraw them. Thus, you don't get the tax savings up-front, but on the back end. Both regular and Roth IRAs accumulate earnings in the account tax-free until withdrawal, but when you withdraw from a regular IRA, you pay taxes on all withdrawals, including both the earnings and the original contribution. When you withdraw from the Roth, you don't pay taxes on the withdrawal.

Answer 2

The first reply is a very good description. For more reading and research, go to the Yahoo finance link on the front page. Find the link on the navigation bar on the left, and start searching from there.

Any IRA works best when you start young and contribute faithfully every payday. If you're in your 20's, you should start now. You can realistically be a millionaire before you retire. Even if you're older, it's still a good idea, as the tax savings can be tremendous.

Answer 3

ordinary... pass to a financial business enterprise and ask them to open a Roth IRA. tell them you want to open it for tax purposes and you want the utmost fee of return. they're going to open one up for you the comparable day. Banks focus on CDs, bonds, on line funds industry. They fee intense expenses in case you purchase shares, mutual money ETFs. it particularly is why you have a 2d selection..... different selection.... you may pass to a brokerage like Scottrade and that they have over 3 hundred brokerages national. there is in all threat one close at your residence and you will open one up there. the only element approximately brokerages is they focus on shares, mutual money, ETFs. you do no longer want to purchase CDs at a brokerage simply by fact they do no longer grant greater helpful than a financial business enterprise will provide. remember: IRA = person retirement account is.... basically an account the place you place shares, bonds, mutual money, CDs, ETFs, funds industry. All investments placed into your ROTH IRA account grows tax unfastened + tax unfastened at withdrawal at retirement.

Answer 4

If you don't know what a Roth IRA is or how it works, why do you want to set one up?