Great retirement benefits and bonuses used to come standard with just about any job, but these days even the most loyal of workers are seeing their retirement packages pulled out from under them. At least companies are honest to new employees: they can forget about even being promised any retirement help.
More and more people are working past what used to be retirement age not only because they’re go-getters who would feel bored without a job, but because so many people can’t afford to sustain themselves without working income. When you struggle just to pay the bills, how do you plan for retirement? When you can no longer count on your employer to help you out after you retire, to whom do you turn?
Make plans for your retirement now with a Roth IRA account or annuity. Ask a financial advisor or investor to help you set up a Roth IRA. You probably think that you can’t afford it, but if you don’t want to be working well past the retirement age, you have to find a way to set aside some money for retirement now. As there is a maximum amount you can contribute each year, a Roth IRA can be surprisingly more affordable than you think.
The primary benefit of a Roth IRA as opposed to other kinds of IRA accounts is that income from the Roth IRA is often federal tax-free for qualified distributions. When you are eligible to receive your Roth IRA distributions, you will not have to pay any tax on the income, as the money you are allowed to contribute to a Roth IRA account each year is already taxed.
When are you eligible to receive these tax-free distributions from your Roth IRA? When you reach the age of 59