Roth IRAs in Fort Worth and Dallas
An IRA is a popular method of saving for retirement but there are several types of IRA’s to choose from. Which type of IRA is right for you? The staff at Texas Retirement Specialists can assist with you determining which IRA best suits your specific situation. One of the options that may be available to you is a Roth IRA. Below you can find some of the most common questions about Roth IRA’s. If you have any questions or you simply need more information, feel free to contact our office, which is conveniently located in Fort Worth, Texas.
What is the difference between an IRA and a Roth IRA?
The main difference between a traditional IRA and a Roth IRA is when your contributions are taxed. With a traditional IRA, you pay taxes on the income when you begin to withdraw it. With a Roth IRA, your contributions are not tax free when you put them in, but your distributions are tax free. However, each individual’s tax situation is unique and therefore to find out what tax advantages may apply to you or your IRA, it’s best to contact us.
The other big difference between the two is that there are income limits for Roth IRA’s. In order to qualify for a Roth IRA, you or you and your spouse must make less than a certain amount of income that’s designated by the IRS.
Who can contribute to a Roth IRA?
Anyone can contribute to a Roth IRA as long as you have a taxable income and as long as that income doesn’t go over the designated limit. For the current income limits, contact Texas Retirement Specialists.
Can I have both a Traditional IRA and a Roth IRA?
Yes, you can have both a Traditional IRA and a Roth IRA, but if you do, the contribution limits are combined. For example, if you’re single and under the age of 50, you can contribute a total of $5,000 annually into your IRA as long as your total income is at least $5,000. If it’s less than $5,000, you’re only allowed to contribute up to what your income was for that year. The total contributions into both a Traditional IRA and a Roth IRA must not exceed the total allowed for the year; in this case, $5,000. Contribution limits differ if you’re married or over the age of 50. Please contact us for current contribution limits.
When do I have to start taking distributions from my Roth IRA?
One of the greatest advantages of a Roth IRA over a Traditional IRA is that you don’t have to take distributions from it by a certain age. With a Traditional IRA, you must start taking distributions at the beginning of the year that you turn age 70 and a 1/2 in. With a Roth IRA, you can start taking distributions at age 59 and a 1/2, but if you don’t need to, you can simply let the money be until it’s needed.
To open a Roth IRA or to find out which type of IRA is best for your retirement planning goals, contact Texas Retirement Specialists.
Our friendly team, located in both Dallas and Ft Worth, will assist you with any questions that you have about a Roth IRA or any of the other retirement savings options that we have to offer.