Roth IRAs

The Roth IRA is an excellent supplement to an individual’s retirement nest egg. Since qualified distributions from a Roth IRA are always tax free, some argue that a Roth IRA may be more advantageous than a Traditional IRA.  Our advisors at SkyOak will help determine if a ROTH IRA is more advantageous to your financial situation and goals. Sometimes we will recommend a ROTH IRA in additional to your current company retirement plan.

The Roth IRA is a retirement saving account to which individuals can make contributions with after-tax dollars. Investment earnings grow tax-deferred (no capital gains or dividend income is taxed) and if certain requirements are met, distributions from the Roth IRA, including the earnings will be tax-free when withdrawn. For Roth IRAs, contributions are not tax deductible like a traditional IRA but qualified distributions are tax free. Contributions to the Roth IRA are discretionary, so individuals can choose when they want to fund their Roth IRA as long as they meet the tax filing deadline, including extensions each year.