January marks the 20th anniversary of the Roth IRA. First made available to American investors in January of 1998, a Roth IRA is an individual retirement account that is funded with after-tax dollars and provides tax-free growth and income for retirement. In honor of this significant milestone, Calvin Goetz, co-founder and partner of Strategy Financial Group and author of “Climbing the Retirement Mountain,” is spreading the word about the benefits of this retirement savings vehicle.
“The 20th anniversary of the Roth IRA serves as a good reminder to examine why this type of retirement account might be right for you,” said Goetz. “There are several benefits that come with a Roth IRA, including tax-free growth and distributions in retirement. Someone who may have saved a million dollars in their traditional IRA may only see half of that amount after they pay income taxes. The beauty of the Roth IRA is that it allows you to contribute after-tax dollars, which can help you avoid a tax time bomb in retirement.”
“I am a big proponent of Roth IRAs, as contributions today lead to tax-free money in retirement, when you need it most,” said Ed Slott, CPA, founder of Ed Slott and Company and a nationally-recognized IRA expert who was named “The Best Source for IRA Advice” by The Wall Street Journal. “Unfortunately, the rules surrounding these retirement accounts are as confusing as ever, so it is important to work with someone who specializes in them.”
Goetz is a member of Ed Slott’s Elite IRA Advisor Group℠, an exclusive membership group dedicated to the mastery of advanced retirement account and tax planning laws and strategies. Members of Ed Slott’s Elite IRA Advisor GroupSM attend semiannual live training events and have year-round access to Ed Slott and Company’s team of retirement experts for consultation on advanced planning topics.
To determine whether a Roth conversion is right for you, it may be beneficial to work with a financial professional who receives specialized training in the ‘second half’ of the retirement game, the distribution phase. “As a member of Ed Slott’s Elite IRA Advisor GroupSM, I take pride in knowing that I am up to speed on the latest retirement strategies and able to provide my clients with the help they need to plan for a successful retirement,” said Goetz.
“Over the last 20 years, a lot has changed for Roth IRAs,” said Slott. “With ever-changing laws, including Congress’s recent decision to eliminate Roth recharacterizations, it is more important than ever for financial professionals to receive ongoing training. I commend Goetz for prioritizing his education and taking the necessary steps to understand the intricacies of retirement accounts and the tax laws that impact them.”