Troy, MI (PressExposure) October 13, 2009 -- Michael McGee explains the benefits to choosing the Roth IRA over the Traditional IRA
People are hesitant to invest their money in the stock market today for fear of their investment losing value and not recovering when they need it. Michael McGee is a financial planner who specializes in retirement planning. He recently spoke at a real estate investorâs meeting to explain the advantages of choosing a Roth IRA over the traditional IRA.
Michael began his lecture, âThe Roth IRA became available on January 1, 1998 as a result of the Taxpayer Relief Act of 1997. It is named after the late Senator William V. Roth, Jr.â
Hands went up immediately; people couldnât wait to ask the important question, âWhat are the advantages to a Roth IRA?â Michael explained, âUnlike the Traditional IRA, the Roth IRA does not allow a deduction for contributions but it does provide other benefits not available under the Traditional IRA. In most cases all earnings are tax free when you withdraw the funds. There are other benefits unique to the Roth IRA including no need to take minimum distributions at the age of 70-1/2 and no distribution penalty on certain withdrawals.â
The next question asked was âWhat are the requirements to being eligible to contribute to a Roth IRA?â Michael answered, âAlmost any one can contribute to a Roth IRA. The contribution amount can be up to $5,000 for the year 2009 ($6,000 for those who will be 50 years old or older by the end of the year). You must have earned income of at least the amount you contribute and your adjusted gross income must be less than $105,000 for a single person and $166,000 for married couples filing a joint tax return. If your income is higher, the amount allowed for a contribution is reduced; the more you make, the greater the reduction.â
As the meeting came to a close people were left with a lot to think about. Retirement planning can be overwhelming with the many options available and the various individual circumstances of different people. As Michaelâs assistant passed out his business card, Michael said, âNo matter how you look at it, most people are better off with the Roth IRA because it is an investment of after-tax money with no taxes to be paid on the interest it earns. Maximizing your contribution will add greater tax leverage to your retirement savings. I would be happy to set an appointment with you to discuss your options and advise you as to what would work best for you.â
Michael McGee provides retirement planning and financial advice to people of all ages and income levels, including young families, business owners and entrepreneurs. Michael can help you with everything from college planning to retirement planning, establishing a 529 college savings plan, traditional IRA, Roth IRA, SEP IRA, 401-K, family savings and more. Learn more at http://financialplanningwaynecounty.blogspot.com/
Contact: Michael S. McGee, MBA Financial Advisor 888 West Big Beaver Suite 850 Troy, MI 48084 248-720-0300 Email: email@example.com This press release was submitted by Right Now Marketing Group, LLC