What is a Roth IRA?

A Roth IRA is a retirement savings account that is funded with earnings that have already been taxed. The earnings placed in a Roth IRA are, therefore, allowed to grow without being taxed further. This type of account allows an individual to set aside a specified amount of their after-tax income each year, while keeping it from being taxed further while it remains in the account. Additionally, when these funds are withdrawn upon retirement, you do not have to pay any taxes. You can contribute to a Roth IRA at any age, as long as you have earned income from a job. It makes the most sense to open a Roth IRA if you expect your tax rate to be higher by the time you retire than it is currently. The attorneys at Bach & Jacobs, P.A. have been trained with regard to the transfer of retirement accounts at death and can advise you about this, both in planning your estate and administering a probate or trust after the account holder has died.