| Saving for retirement is one of the most important | | | | advantage of current tax rates, since you only your |
| financial decisions that you can make in order to | | | | initial investment will be taxed. Your money will |
| ensure a comfortable future for yourself, but with all | | | | ultimately be safe, tax-free, and protected from the |
| of the different investment options available, it can | | | | dangers of the constantly shifting economic |
| be difficult to decide which one will be the best fit | | | | landscape. |
| for your needs. Of course, any retirement savings | | | | - More people than ever before are free to choose a |
| plan that promises free money should appeal to | | | | Roth IRA! Whereas in the past, individuals whose |
| anyone, regardless of income, industry or current | | | | annual income totaled more than $100,000 were |
| age. But is it actually possible to earn free money for | | | | barred from converting their IRAs from a traditional |
| retirement? Surprisingly, the answer is yes! IRAs, or | | | | to a Roth account, brand new rules set in place in |
| individual retirement accounts, offer one of the | | | | 2010 now allow them to do so. In fact, for just one |
| safest and most potentially profitable ways to invest | | | | year, you can actually convert your traditional IRA |
| and grow your money for retirement - and with the | | | | into a Roth IRA without having to pay all of the |
| tax breaks offered by Roth IRAs, the money you | | | | conversion fees at once. Instead, you can simply pay |
| earn will essentially be "free." | | | | half of the taxable amount in 2010, and the other half |
| Here are some of the advantages of choosing a | | | | in 2011. |
| Roth IRA over a traditional IRA: | | | | - Finally, Roth IRAs give you the freedom to pass |
| - Roth IRAs allow you to make tax-free withdrawals | | | | free money on to your beneficiaries. While traditional |
| from your account, whereas other types of individual | | | | IRAs require minimum withdrawals by the account |
| retirement accounts tax such transactions. In fact, | | | | holder after they reach the age of 70, Roth IRAs |
| the only taxes you're required to pay are those that | | | | have no such rule. Since you can hold your Roth |
| apply to your initial investment. This makes it easier | | | | account indefinitely, that means you'll have endless |
| to grow your money by placing it in high-yielding | | | | opportunities for tax-free monetary growth. |
| assets, like stocks, without worrying about the taxes | | | | Withdraw your funds at any time, or leave the |
| you'll have to pay down the line. | | | | contents of your account for your children and |
| - As the national deficit continues to grow, tax rates | | | | grandchildren. |
| are sure to rise - but this IRA will allow you to take | | | | |