Roth IRA Benefits

There are a number of advantages to having your funds in a Roth IRA when you retire.

#1: You don’t pay federal or state tax on qualified distributions from a Roth.

#2: Qualified distributions don’t count as Provisional Income which means they don’t affect taxation of your Social Security benefits. 

#3: Qualified distributions don’t count as Modified Adjusted Gross Income which means they don’t affect Medicare premium surcharges or IRMAA.

#4: Your beneficiaries’ RMDs are federal and state tax-free

#5: You know exactly how much is yours in your retirement account because you’ve fired your silent business partner Uncle Sam unlike in a regular pre-tax IRA.

*A Qualified Distribution is a withdrawal from a Roth IRA if you’re over 59 ½ and it’s been at least 5 years since your first Roth has been opened.