Roth IRAs - Making A Good Thing Better
In 1997, Congress made a good thing better when it created a new type of retirement savings account, the Roth IRA. Named after Senator William Roth, who introduced the legislation that created them, Roth IRAs differ from traditional IRAs in three key respects: 1. Roth IRAs are funded with after-tax income, so there is no current deduction for annual contributions. However, earnings are tax-free upon withdrawal. In contrast, traditional IRAs are funded with pre-tax income, so taxes on earnings generally must be paid upon withdrawal at ordinary income tax rates. 2. There are no required