By Molly Greaves
I’d heard a Roth IRA is just about the best financial gift you could ever give to your kids so I did some research…
Here’s why: Your assets in your Roth dont have to be tapped at any time during your lifetime, should you be so lucky, and when your kids inherit them, they can withdraw the money tax-free.
Compare that to a regular IRA. If you own this investment vehicle, you’ll have to start taking out distributions from the account starting April 1 of the year AFTER you turn 70 1/2, even if you dont need the money. And then, once your kids inherit the money, they will have to pay income taxes on the money when they take it out. So, they’ll end up with a LOT less.
Filed under: -- Building Wealth, -- For The Investor In YOU, -- Money Help (in simple terms) | Tagged: -- Investing, -- Money Help (in simple terms), -- YOUR Retirement, money tip, Roth IRA, Top Blog
