When it comes to the Roth IRA there is a lot of hype and not much understanding many times. Everyone professes that you would be remiss in not opening one of these retirement accounts, yet never seems to back up the talk with any details. This article will try to extrapolate out the reasons to open a Roth IRA and how the specific Roth IRA rules [http://www.bestrothiraonline.com/roth-ira-rules/] either include or exclude you from joining in the fray. It will surprise some that a Roth isn't the best option for them, while others will find out that the special rules behind a Roth make this a very lucrative method to add to your retirement portfolio.
The most important thing to consider first is whether you qualify for a Roth IRA. All the rules start here, because if you don't qualify you can't take advantage. To that end, make sure to check out the IRS website to ensure that you are under the income requirements. Currently that means that your modified adjusted gross income needs to be less than $XXX as a person married filing jointly and less than $xxx if you file your taxes as a single person.
The second important rule is that all money going into a Roth IRA is after tax money while all the money you eventually take out in retirement is removed tax free. This is important to take into account, because for this to be a beneficial retirement vehicle you need to be of the opinion that you are in a lower tax bracket now than you will be in retirement.
If you take the above 2 rules into account it should steer you into the first steps of whether opening a Roth account is the right move for you. Make sure to take the Roth rules into account before taking the plunge and ensure that this retirement vehicle is in your best interests.