{"id":36877,"date":"2023-12-19T13:22:26","date_gmt":"2023-12-19T18:22:26","guid":{"rendered":"https:\/\/www.glensfalls.com\/glensfallsbusinessjournal\/?p=36877"},"modified":"2023-12-19T13:22:26","modified_gmt":"2023-12-19T18:22:26","slug":"business-report-know-the-key-benefits-of-a-roth-ira","status":"publish","type":"post","link":"https:\/\/www.glensfalls.com\/glensfallsbusinessjournal\/2023\/12\/business-report-know-the-key-benefits-of-a-roth-ira\/","title":{"rendered":"Business Report: Know the Key Benefits of a Roth IRA"},"content":{"rendered":"
\"\"
John Gable is a financial advisor with Edward Jones Financial in Warrensburg.<\/figcaption><\/figure>\n

\u00a0<\/span>By John Gable<\/p>\n

As you save for retirement, you\u2019ll want to take full advantage of the investment vehicles available to you \u2014 and one of the best is a Roth IRA. But what sets it apart from other accounts?<\/p>\n

Three key factors distinguish the Roth IRA:<\/p>\n

\u2022 Tax-free earnings \u2013 When you invest in a Roth IRA, your earnings can grow tax free, provided you don\u2019t begin taking withdrawals until you\u2019re 59\u00bd and you\u2019ve had your account at least five years. If you don\u2019t meet these criteria, withdrawals of earnings will be subject to taxes and a possible 10 percent penalty.\u00a0<\/span><\/p>\n

\u2022 No penalties on withdrawals of contributions \u2013 You fund a Roth IRA with after-tax dollars, which means you can withdraw your contributions \u2014 not the earnings \u2014 at any time for any reason, without facing taxes or penalties. So, you could use some of your Roth IRA money for non-retirement purposes, such as helping pay for a child\u2019s college education.<\/p>\n

\u2022 No required withdrawals at age 73 \u2013 With a traditional IRA or a 401(k), you must start taking withdrawals \u2014 called required minimum distributions, or RMDs \u2014 once you reach 73. But this rule doesn\u2019t apply to a Roth IRA \u2014 you can keep it intact as long as you like. You may need to tap into it for some of your retirement income, but if you don\u2019t use it all, the remainder could benefit your beneficiaries.\u00a0<\/span><\/p>\n

A Roth IRA does share one similarity to a traditional IRA: It can be funded with virtually any type of investment, including stocks, bonds, mutual funds, certificates of deposit (CDs) and so on.<\/p>\n

<\/span><\/span><\/strong><\/span>However, unlike a traditional IRA, a Roth IRA does have income limits.\u00a0<\/span><\/p>\n

For the 2023 tax year, if your modified adjusted gross income was less than $138,000 (for a single filer) or $218,000 (married filing jointly), you can put in the full amount of $6,500 and an additional $1,000 catch-up contribution if you\u2019re 50 or older. The amounts you can contribute will gradually decline at higher income levels and are phased out entirely at $153,000 for single filers and $228,000 if you\u2019re married and file jointly. These income ranges will likely change for the 2024 tax year, so you\u2019ll want to consult with your tax advisor for details.\u00a0<\/span><\/p>\n

Still, even if you\u2019ve contributed to a traditional IRA or a 401(k) for many years, you may have a chance to eventually \u201cconvert\u201d some, or all, of these funds to a Roth IRA and gain its benefits. It\u2019s not hard to do this conversion \u2014 it involves minimal paperwork from your traditional IRA or 401(k) provider \u2014 but it does come with tax issues. Any money that\u2019s converted from a traditional IRA or 401(k) to a Roth IRA will be treated as ordinary taxable income. This can trigger a large tax bill, so, unless you have the money available from other accounts to pay the taxes, the conversion may or may not make sense for you. But you don\u2019t have to convert all the funds at once. By spreading the conversion over several years, you could reduce the effect of a large tax hit in any single year. You may want to consult with your tax advisor before converting any funds to a Roth IRA.<\/p>\n

If you can find a way to contribute to a Roth IRA, either directly or through a conversion, consider it carefully \u2014 you\u2019ll find a lot of upsides to this investment account.\u00a0<\/span><\/p>\n","protected":false},"excerpt":{"rendered":"

\u00a0By John Gable As you save for retirement, you\u2019ll want to take full advantage of the investment vehicles available to you \u2014 and one of the best is a Roth IRA. But what sets it apart from other accounts? Three key factors distinguish the Roth IRA: \u2022 Tax-free earnings \u2013 When you invest in a […]<\/p>\n","protected":false},"author":89,"featured_media":34673,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[9],"tags":[],"yoast_head":"\r\nBusiness Report: Know the Key Benefits of a Roth IRA - Glens Falls Business Journal<\/title>\r\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\r\n<link rel=\"canonical\" href=\"https:\/\/www.glensfalls.com\/glensfallsbusinessjournal\/2023\/12\/business-report-know-the-key-benefits-of-a-roth-ira\/\" \/>\r\n<meta property=\"og:locale\" content=\"en_US\" \/>\r\n<meta property=\"og:type\" content=\"article\" \/>\r\n<meta property=\"og:title\" content=\"Business Report: Know the Key Benefits of a Roth IRA - Glens Falls Business Journal\" \/>\r\n<meta property=\"og:description\" content=\"\u00a0By John Gable As you save for retirement, you\u2019ll want to take full advantage of the investment vehicles available to you \u2014 and one of the best is a Roth IRA. But what sets it apart from other accounts? Three key factors distinguish the Roth IRA: \u2022 Tax-free earnings \u2013 When you invest in a […]\" \/>\r\n<meta property=\"og:url\" content=\"https:\/\/www.glensfalls.com\/glensfallsbusinessjournal\/2023\/12\/business-report-know-the-key-benefits-of-a-roth-ira\/\" \/>\r\n<meta property=\"og:site_name\" content=\"Glens Falls Business Journal\" \/>\r\n<meta property=\"article:published_time\" content=\"2023-12-19T18:22:26+00:00\" \/>\r\n<meta property=\"og:image\" content=\"https:\/\/www.glensfalls.com\/glensfallsbusinessjournal\/wp-content\/uploads\/sites\/109\/2021\/10\/ed-jones-john-gable.jpg\" \/>\r\n\t<meta property=\"og:image:width\" content=\"432\" \/>\r\n\t<meta property=\"og:image:height\" content=\"658\" \/>\r\n\t<meta property=\"og:image:type\" content=\"image\/jpeg\" \/>\r\n<meta name=\"author\" content=\"Jake Van Ness\" \/>\r\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\r\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"Jake Van Ness\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"3 minutes\" \/>\r\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"WebPage\",\"@id\":\"https:\/\/www.glensfalls.com\/glensfallsbusinessjournal\/2023\/12\/business-report-know-the-key-benefits-of-a-roth-ira\/\",\"url\":\"https:\/\/www.glensfalls.com\/glensfallsbusinessjournal\/2023\/12\/business-report-know-the-key-benefits-of-a-roth-ira\/\",\"name\":\"Business Report: Know the Key Benefits of a Roth IRA - Glens Falls Business Journal\",\"isPartOf\":{\"@id\":\"https:\/\/www.glensfalls.com\/glensfallsbusinessjournal\/#website\"},\"datePublished\":\"2023-12-19T18:22:26+00:00\",\"dateModified\":\"2023-12-19T18:22:26+00:00\",\"author\":{\"@id\":\"https:\/\/www.glensfalls.com\/glensfallsbusinessjournal\/#\/schema\/person\/a11ec438b5f0e57f1156754ba3931b86\"},\"breadcrumb\":{\"@id\":\"https:\/\/www.glensfalls.com\/glensfallsbusinessjournal\/2023\/12\/business-report-know-the-key-benefits-of-a-roth-ira\/#breadcrumb\"},\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"ReadAction\",\"target\":[\"https:\/\/www.glensfalls.com\/glensfallsbusinessjournal\/2023\/12\/business-report-know-the-key-benefits-of-a-roth-ira\/\"]}]},{\"@type\":\"BreadcrumbList\",\"@id\":\"https:\/\/www.glensfalls.com\/glensfallsbusinessjournal\/2023\/12\/business-report-know-the-key-benefits-of-a-roth-ira\/#breadcrumb\",\"itemListElement\":[{\"@type\":\"ListItem\",\"position\":1,\"name\":\"Home\",\"item\":\"https:\/\/www.glensfalls.com\/glensfallsbusinessjournal\/\"},{\"@type\":\"ListItem\",\"position\":2,\"name\":\"Business Report: Know the Key Benefits of a Roth IRA\"}]},{\"@type\":\"WebSite\",\"@id\":\"https:\/\/www.glensfalls.com\/glensfallsbusinessjournal\/#website\",\"url\":\"https:\/\/www.glensfalls.com\/glensfallsbusinessjournal\/\",\"name\":\"Glens Falls Business Journal\",\"description\":\"\",\"potentialAction\":[{\"@type\":\"SearchAction\",\"target\":{\"@type\":\"EntryPoint\",\"urlTemplate\":\"https:\/\/www.glensfalls.com\/glensfallsbusinessjournal\/?s={search_term_string}\"},\"query-input\":\"required name=search_term_string\"}],\"inLanguage\":\"en-US\"},{\"@type\":\"Person\",\"@id\":\"https:\/\/www.glensfalls.com\/glensfallsbusinessjournal\/#\/schema\/person\/a11ec438b5f0e57f1156754ba3931b86\",\"name\":\"Jake Van Ness\",\"image\":{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\/\/www.glensfalls.com\/glensfallsbusinessjournal\/#\/schema\/person\/image\/\",\"url\":\"https:\/\/secure.gravatar.com\/avatar\/8083519989e12032abdd06a668982ef4?s=96&d=mm&r=g\",\"contentUrl\":\"https:\/\/secure.gravatar.com\/avatar\/8083519989e12032abdd06a668982ef4?s=96&d=mm&r=g\",\"caption\":\"Jake Van Ness\"},\"url\":\"https:\/\/www.glensfalls.com\/glensfallsbusinessjournal\/author\/jakev\/\"}]}<\/script>\r\n<!-- \/ Yoast SEO plugin. -->","yoast_head_json":{"title":"Business Report: Know the Key Benefits of a Roth IRA - Glens Falls Business Journal","robots":{"index":"index","follow":"follow","max-snippet":"max-snippet:-1","max-image-preview":"max-image-preview:large","max-video-preview":"max-video-preview:-1"},"canonical":"https:\/\/www.glensfalls.com\/glensfallsbusinessjournal\/2023\/12\/business-report-know-the-key-benefits-of-a-roth-ira\/","og_locale":"en_US","og_type":"article","og_title":"Business Report: Know the Key Benefits of a Roth IRA - Glens Falls Business Journal","og_description":"\u00a0By John Gable As you save for retirement, you\u2019ll want to take full advantage of the investment vehicles available to you \u2014 and one of the best is a Roth IRA. But what sets it apart from other accounts? Three key factors distinguish the Roth IRA: \u2022 Tax-free earnings \u2013 When you invest in a […]","og_url":"https:\/\/www.glensfalls.com\/glensfallsbusinessjournal\/2023\/12\/business-report-know-the-key-benefits-of-a-roth-ira\/","og_site_name":"Glens Falls Business Journal","article_published_time":"2023-12-19T18:22:26+00:00","og_image":[{"width":432,"height":658,"url":"https:\/\/www.glensfalls.com\/glensfallsbusinessjournal\/wp-content\/uploads\/sites\/109\/2021\/10\/ed-jones-john-gable.jpg","type":"image\/jpeg"}],"author":"Jake Van Ness","twitter_card":"summary_large_image","twitter_misc":{"Written by":"Jake Van Ness","Est. reading time":"3 minutes"},"schema":{"@context":"https:\/\/schema.org","@graph":[{"@type":"WebPage","@id":"https:\/\/www.glensfalls.com\/glensfallsbusinessjournal\/2023\/12\/business-report-know-the-key-benefits-of-a-roth-ira\/","url":"https:\/\/www.glensfalls.com\/glensfallsbusinessjournal\/2023\/12\/business-report-know-the-key-benefits-of-a-roth-ira\/","name":"Business Report: Know the Key Benefits of a Roth IRA - Glens Falls Business Journal","isPartOf":{"@id":"https:\/\/www.glensfalls.com\/glensfallsbusinessjournal\/#website"},"datePublished":"2023-12-19T18:22:26+00:00","dateModified":"2023-12-19T18:22:26+00:00","author":{"@id":"https:\/\/www.glensfalls.com\/glensfallsbusinessjournal\/#\/schema\/person\/a11ec438b5f0e57f1156754ba3931b86"},"breadcrumb":{"@id":"https:\/\/www.glensfalls.com\/glensfallsbusinessjournal\/2023\/12\/business-report-know-the-key-benefits-of-a-roth-ira\/#breadcrumb"},"inLanguage":"en-US","potentialAction":[{"@type":"ReadAction","target":["https:\/\/www.glensfalls.com\/glensfallsbusinessjournal\/2023\/12\/business-report-know-the-key-benefits-of-a-roth-ira\/"]}]},{"@type":"BreadcrumbList","@id":"https:\/\/www.glensfalls.com\/glensfallsbusinessjournal\/2023\/12\/business-report-know-the-key-benefits-of-a-roth-ira\/#breadcrumb","itemListElement":[{"@type":"ListItem","position":1,"name":"Home","item":"https:\/\/www.glensfalls.com\/glensfallsbusinessjournal\/"},{"@type":"ListItem","position":2,"name":"Business Report: Know the Key Benefits of a Roth IRA"}]},{"@type":"WebSite","@id":"https:\/\/www.glensfalls.com\/glensfallsbusinessjournal\/#website","url":"https:\/\/www.glensfalls.com\/glensfallsbusinessjournal\/","name":"Glens Falls Business Journal","description":"","potentialAction":[{"@type":"SearchAction","target":{"@type":"EntryPoint","urlTemplate":"https:\/\/www.glensfalls.com\/glensfallsbusinessjournal\/?s={search_term_string}"},"query-input":"required name=search_term_string"}],"inLanguage":"en-US"},{"@type":"Person","@id":"https:\/\/www.glensfalls.com\/glensfallsbusinessjournal\/#\/schema\/person\/a11ec438b5f0e57f1156754ba3931b86","name":"Jake Van Ness","image":{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/www.glensfalls.com\/glensfallsbusinessjournal\/#\/schema\/person\/image\/","url":"https:\/\/secure.gravatar.com\/avatar\/8083519989e12032abdd06a668982ef4?s=96&d=mm&r=g","contentUrl":"https:\/\/secure.gravatar.com\/avatar\/8083519989e12032abdd06a668982ef4?s=96&d=mm&r=g","caption":"Jake Van Ness"},"url":"https:\/\/www.glensfalls.com\/glensfallsbusinessjournal\/author\/jakev\/"}]}},"_links":{"self":[{"href":"https:\/\/www.glensfalls.com\/glensfallsbusinessjournal\/wp-json\/wp\/v2\/posts\/36877"}],"collection":[{"href":"https:\/\/www.glensfalls.com\/glensfallsbusinessjournal\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.glensfalls.com\/glensfallsbusinessjournal\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.glensfalls.com\/glensfallsbusinessjournal\/wp-json\/wp\/v2\/users\/89"}],"replies":[{"embeddable":true,"href":"https:\/\/www.glensfalls.com\/glensfallsbusinessjournal\/wp-json\/wp\/v2\/comments?post=36877"}],"version-history":[{"count":1,"href":"https:\/\/www.glensfalls.com\/glensfallsbusinessjournal\/wp-json\/wp\/v2\/posts\/36877\/revisions"}],"predecessor-version":[{"id":36878,"href":"https:\/\/www.glensfalls.com\/glensfallsbusinessjournal\/wp-json\/wp\/v2\/posts\/36877\/revisions\/36878"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.glensfalls.com\/glensfallsbusinessjournal\/wp-json\/wp\/v2\/media\/34673"}],"wp:attachment":[{"href":"https:\/\/www.glensfalls.com\/glensfallsbusinessjournal\/wp-json\/wp\/v2\/media?parent=36877"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.glensfalls.com\/glensfallsbusinessjournal\/wp-json\/wp\/v2\/categories?post=36877"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.glensfalls.com\/glensfallsbusinessjournal\/wp-json\/wp\/v2\/tags?post=36877"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}