O'Reilly logo

The Complete Idiot's Guide® To Protecting Your 401(k) and IRA by Bill Lane, Jennifer Lane

Stay ahead with the world's most comprehensive technology and business learning platform.

With Safari, you learn the way you learn best. Get unlimited access to videos, live online training, learning paths, books, tutorials, and more.

Start Free Trial

No credit card required

Roth IRA

Roth IRAs—named after the former Senate Finance Committee Chairman William V. Roth Jr.—have amazing tax benefits. While you don’t get to deduct the money you contribute to them, their greatest advantage is that when you make withdrawals, none of the money is taxable—neither your basis nor the earnings in your account! Instead of being tax-deferred accounts like regular IRAs, Roth IRA withdrawals are essentially tax-free. Of course you didn’t get a break on your deposit, but you’re not paying tax on your earnings. And they can stay tax-free and continue to grow for a long time. Unlike regular IRAs, you don’t have to start taking money out of your Roth after you turn age 70½. If you don’t need the money, you can leave it in the Roth IRA ...

With Safari, you learn the way you learn best. Get unlimited access to videos, live online training, learning paths, books, interactive tutorials, and more.

Start Free Trial

No credit card required