The year to Roth?

Many will regard 2020, as a year where they experienced profound financial struggle.  Looking to the future, this may be the time to start considering Roth contributions or Roth conversions (for those older than fifty-nine and a half). 

What are the benefits of opening or changing your account type to this style? There are various reasons to change to this account type, but those with the most significance to our current climate are:

· A Roth account is a tax-free account. Meaning, all earnings within the account are tax-free to you, even when you remove the money in retirement.

· Principle can be taken out with no penalty to you at any time. This makes it a great additional account for retirement and an alternative to a low interest savings account.

 The reason these two have the highest significance, is due to the flexibility these accounts offer from a tax perspective. In this retirement account your money can still grow for you, allowing you to save for your future. In addition to this, it would provide you the ability to pull from your account without reducing your withdrawal to pay tax.

To see the tax implications of this decision please contact us at michael@accountingpersonalized.com or call us at 352-224-9530.