Here’s a look at the current Roth IRA rules and the changes are “very soon”. The definition of a Roth IRA became public law in 1996 under legislation sponsored by Senator William Roth of Delaware. Although similar to a traditional retirement account, there are significant differences.
Rule No. 1 – Pay now or pay less taxes less
With a traditional account, contributions are tax deductible, before taxes and deferred taxes. According to Roth IRA rules, contributions are taxed as ordinary income, but qualified distributions are not taxed. Continue reading
