The Medford Tax Experts, Inc.

425 High Street, Medford, MA 02155

What we mean when we say "Relax and let an expert do your tax" is that taxpayers are trying to do the right thing and file an accurate tax return. Allow us to help ease the stress.

office 781-219-4206
fax 781-874-9240

The same contribution limits exist for a Roth as for a traditional IRA, but there are tremendous advantages to owning a Roth. It is your first step toward getting rich slowly.  For more information, search Roth IRA or go to the IRS web page on Roth Accounts.

Reasons to Roth

 

Are you subject to 3.8% Medicare Tax, (NIIT)

  • Your Roth investment income is tax free

Are you over age 70 

  • Minimum Required Distributions do not apply
  • If still earning income, you can still contribute

Even Children can open a Roth

  • There is no age restriction on when you can open a Roth
  • If still earning income, you can still contribute

Consider a IRA Conversion 

  • Pay the tax without using conversion money
  • Don't pay the tax penalty

What is Your Estate Plan

  • Your children can withdraw tax free money for the rest of their lifetimes

You can withdraw contributions from your Roth --Tax Free--

  • If Roth money is used to buy your first home, you may withdraw tax free your contributions and up to $10,000 of the investment earnings.

Do you expect your taxable income to increase

  • Pay the tax at today's low income tax rates and then draw the money tax-free

Reasons Not to Roth

Will the immediate tax savings from a tax deductible IRA earn you more money than the future tax savings of a Roth?

--A Roth IRA uses your wages and savings to exchange a tax today that will avoid a tax tomorrow--

Before you decide, consult a certified financial planner