5 Advantages of Roth IRAs- #1-Tax-Free Growth and Distribution

Wealth Advisor

In this informative video, Ben from Ewa introduces the key benefits of a Roth IRA, shedding light on why it’s a favored choice for investment. He discusses how money invested in a Roth IRA experiences tax-free growth and can be distributed without tax implications.

Ben draws a comparison to traditional IRAs, highlighting that while both types offer tax-free growth, the distinctive advantage of a Roth IRA lies in its completely tax-free distributions, granted the account has been active for five years.

Video Transcript

Hey, I’m Ben with Ewa. And today we’re going to talk through five advantages of a Roth IRA and why we typically recommend to contribute to one. So first one being, money inside of a Roth IRA grows tax free and also distributes tax free.

So, similar to a traditional IRA, both Roth IRAs and traditional IRAs grow tax free. But where they differ is that distributions from a Roth IRA occur completely tax free, provided you’ve had the account established for five years.

And you don’t distribute any earnings until you’re 59 and a half.

Show Full Transcript

Playlist

5 Advantages of Roth IRAs

5 Advantages of Roth IRAs- #2-Access Contributions If You Need To
5 Advantages of Roth IRAs- #3-No RMDs
5 Advantages of Roth IRAs- #5-Asset Location
5 Advantages of Roth IRAs: Tip 4

Recommended Videos

10 Tips for Current Retirees - Tip 10- Plan Your Travel
Buying vs Leasing Your Car
Variable Annuities Explained
10 Tips for Current Retirees - Tip 8- Have a 7 Year Spending Back Up
2023 Annual Limits
10 Tips for Maximizing Your Financial Plan in 2023: Tip 1- 401ks and 403bs