MANAGEMENT

Detailed explanation-1: -With a Roth IRA, there are no immediate tax benefits, but contributions and earnings grow tax-free. All withdrawals can be taken out tax-free and penalty free, provided you’re age 59½ or older and you have met the minimum account holding period (currently five years).

Detailed explanation-2: -With a Roth IRA, contributions are not tax-deductible, but earnings can grow tax-free, and qualified withdrawals are tax-and penalty-free.

Detailed explanation-3: -With a Roth IRA, you contribute after-tax dollars, your money grows tax-free, and you can generally make tax-and penalty-free withdrawals after age 59½. With a Traditional IRA, you contribute pre-or after-tax dollars, your money grows tax-deferred, and withdrawals are taxed as current income after age 59½.

Detailed explanation-4: -Key Takeaways Although Roth IRAs have advantages, they aren’t for everyone. You can’t make tax-deductible contributions to a Roth IRA. You can’t roll over (move) a Roth IRA to a traditional retirement plan. Roth IRAs can’t be included as an option in an employee retirement plan.

Detailed explanation-5: -You generally have to start taking withdrawals from your IRA, SEP IRA, SIMPLE IRA, or retirement plan account when you reach age 72 (70 ½ if you reach 70 ½ before January 1, 2020). Roth IRAs do not require withdrawals until after the death of the owner. You can withdraw more than the minimum required amount.