Roth Ira

A Roth IRA is a type of retirement plan. It is a tax advantaged plan, which means that this investment account has specific tax benefits for users. A Roth IRA may be set up by an employer or by an individual through a qualified financial institution. Funds from the Roth IRA are deposited into the account after being taxed by traditional income tax. The funds are left in the retirement account to grow with compound interest until the time of retirement. By the time an individual reaches age 70 ½ he or she must begin mandatory withdraws of the funds. When the funds are withdrawn, they do not face any type of tax.

Fast Facts

    • Only 25 percent of women will successfully calculate the amount of money needed for retirement.
    • The most likely person to invest in a pension plan is a white, male with a high earning aged 45 to 54 and working in the public sector.

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