Do you think you understand all the rules that govern your Roth IRA? Not so fast! There are many misconceptions as to how these complicated accounts work. Here are 5 Roth IRA facts that might surprise you:
1. You are never too old to contribute. If you have earned income and your modified adjusted gross income is below a certain level, you can contribute to a Roth IRA. Your age does not matter. This often comes as a surprise to taxpayers because you cannot contribute to a traditional IRA once you reach the year you turn 70 ½. Roth IRAs are different. Age is never a barrier to making tax year contributions.
By J. Mark King, CFP®
Being apprehensive is a valid concern when looking for a financial advisor to manage your assets. I’d like to share some tips and precautions to help you make wise choices in finding a financial firm.
During your financial advisor search, confirm that the financial team you’ll be working with hold designations such as:
- CERTIFIED FINANCIAL PLANNER™ (CFP®)
- Chartered Financial Consultant® (ChFC®)
- Personal Financial Specialist (PFS)
- Certified Fund Specialist® (CFS®)
- Chartered Life Underwriter® (CLU®)
- Certified Investment Management Analyst® (CIMA®)