New York, NY -- (ReleaseWire) -- 09/18/2012 -- In times of financial uncertainty such as the current recession, Americans are putting more deliberation into their retirement savings. Rather than just opting for employer-offered 401(k) plans, many are choosing Roth IRAs instead.
“Roth IRAs are one of the smartest retirement savings plans available to low and middle-income earners,” said an expert from the website SelfDirectedRothIRA.org. “What makes these plans so attractive is that taxes are paid up front but don’t have to be paid at withdrawal. That means earnings can grow interest free.”
As with other retirement plans, setting up and managing a Roth IRA can be confusing. Specifically for Roth IRAs, there are maximum earning and contribution rules as well as rules for when earnings can be withdrawn without penalties or taxes. SelfDirectedRothIRA.org notes that it is particularly important for accountholders to understand the exceptions to the rules as these exceptions can provide other benefits, such as allowing a Roth IRA to be used for college savings instead of a traditional 529 savings plan.
When establishing a Roth IRA, people have the choice between a brokered account or directing the account themselves. “With a self-directed Roth IRA, investors save on outrageous fees charged by brokers. They also get more control over how they want to manage their retirement savings.” Even self-directed Roth IRAs have fees associated with them though. Investors can expect to pay yearly fees for keeping the account open as well as fees for each investment transaction.
All investments, including retirement funds like Roth IRAs, always involve some risk. With the information provided at SelfDirectedRothIRA.org, accountholders will be better equipped to manage their Roth IRAs and make smart investment choices so their savings grow to provide for a comfortable retirement.
For free expert advice about managing Roth IRAs, visit SelfDirectedRothIRA.org today.