Roth IRAs differ from traditional IRAs in that contributions are not tax deductible, yet qualified distributions are tax-free. In general, most individuals seek to defer the payment of taxes in anticipation of being in a lower tax bracket and enjoying a lower tax rate in the future. The Roth IRA turns this rule of thumb around and instead provides tax-free benefits for tax payments made in the present.
Roth IRAs allow eligible individuals to make annual contributions of up to $5,000 or 100% of compensation, whichever is less, depending on filing status and adjusted gross income. The greatest advantage of a Roth IRA is that it may enable individuals’ contributions to accumulate tax-free.
If you would like to learn more about these types of plans, please contact one of our Trust Officer’s by phone at (941) 493-3600 or by email.
Trusts & Estates
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