 The Roth IRA has become an increasingly popular retirement savings vehicle. From 2010 to 2013, Roth IRA balances grew more than 51 percent, while traditional IRA balances grew 28 percent over that same period. In 2013 more than $6 billion was contributed to Roth accounts, while only $4.61 billion was contributed to traditional IRAs.1
The Roth’s popularity stems from its unique tax treatment. You contribute after-tax dollars to your Roth, and the funds grow on a tax-deferred basis. As long as you wait until age 59½ and at least five years after the account was opened to take distributions, all withdrawals are tax-free. That means you can use a Roth to create a tax-free income stream in retirement. Unfortunately, many people are unable to take advantage of the Roth’s tax benefits. Perhaps your income exceeds the Roth’s limitations and you’re unable to contribute. Or maybe you’ve primarily used a 401(k) or traditional IRA to accumulate retirement assets.
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 There may be no resource more valuable in retirement than income that’s guaranteed for life. Guaranteed income provides you with a base level of certainty and predictability. It’s not impacted by market fluctuations, and there’s no risk that you’ll outlive your funds. When you have guaranteed income, you can make financial and spending decisions with confidence.
Unfortunately, guaranteed* income is becoming more and more rare for many retirees. There was a time when workers could expect to have their entire retirement funded by Social Security and employer pensions. Today’s Social Security benefits are unlikely to fund a full retirement, however, and few employers still offer a pension. |
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*Guarantees provided by annuities are subject to the financial strength of the issuing insurance company; not guaranteed by any bank or the FDIC. Guaranteed lifetime income available through annuitization or the purchase of an optional lifetime income rider, a benefit for which an annual premium is charged.
This information is designed to provide a general overview with regard to the subject matter covered and is not state specific. The authors, publisher and host are not providing legal, accounting or specific advice for your situation.
Licensed Insurance Professional. Respond and learn how insurance and annuities can positively impact your retirement. This material has been provided by a licensed insurance professional for informational and educational purposes only and is not endorsed or affiliated with the Social Security Administration or any government agency. It is not intended to provide, and should not be relied upon for, accounting, legal, tax or investment advice.
16045 - 2016/8/23 | Privacy Policy
This information is designed to provide a general overview with regard to the subject matter covered and is not state specific. The authors, publisher and host are not providing legal, accounting or specific advice for your situation.
Licensed Insurance Professional. Respond and learn how insurance and annuities can positively impact your retirement. This material has been provided by a licensed insurance professional for informational and educational purposes only and is not endorsed or affiliated with the Social Security Administration or any government agency. It is not intended to provide, and should not be relied upon for, accounting, legal, tax or investment advice.
16045 - 2016/8/23 | Privacy Policy