Why a Roth IRA May Be Particularly Beneficial

Many are aware that tax-free earnings growth and the ability to pass assets to beneficiaries on a tax-free basis make Roth IRAs a popular retirement savings strategy. But did you know Roth IRAs can be particularly beneficial to women preparing for retirement? On average, women tend to live longer than men¹, so they need to save more for retirement to ensure their income lasts upwards of 25 years. However, because women tend to make less money over the course of their careers, their overall savings rates tend to be lower than men². That’s where a Roth IRA can help.

How Can a Roth IRA Help?

• As of 2024, you can contribute up to $7,000 per year ($8,000 if you’re 50 or older).
• Money is contributed after tax, so when you make a distribution, you’ll receive the funds tax-free, provided you follow the Roth IRA withdrawal rules.
• Roth IRAs allow account owners to contribute as long as they work, regardless of age.
• Unlike Traditional IRAs, Roth IRAs aren’t subject to required minimum distributions (RMDs), which means your assets can keep working hard for you for a longer period of time.

Reach out today if you’d like to learn more about Roth IRA benefits and eligibility.

To qualify for the tax-free and penalty-free withdrawal or earnings, a Roth IRA must be in place for at least five tax years, and the distribution must take place after age 59 ½ or due to death, disability, or a first time home purchase (up to a $10,000 lifetime maximum). Depending on state law, Roth IRA distributions may be subject to state taxes."

^{1 https://time.com/5538099/why-do-women-live-longer-than-men/}

^{2 https://www.payscale.com/data/gender-pay-gap}

^{This communication is designed to provide accurate and authoritative information on the subjects covered. It is not, however, intended to provide specific legal, tax, or other professional advice. For specific professional assistance, the services of an appropriate professional should be sought.}