Why You Need a Roth IRA -- Now!

Saving for your retirement is a very important thing to think about and deciding what kind of account you are going to use to put that money in is very important as well. A Roth Ira is a great way to save for retirement. This type of account if you follow the rules and put your money away like you should then it is totally tax-free. Right now you can only contribute $4,000 annually but in 2008 it will rise to $5,000 annually. As long as you wait until retirement to take the money out of the account you will have not have to give the IRS one cent of the money since it will be totally tax-free.

There are a few rules to the Roth IRA account. The first being that you must earn the income you contribute to it. It can not be a gift or left over money from another loan. It must be something you received from being employed and you can not save more then you made. Additionally, you also must to stop contributing if you make more then $95,000 single or $150,000 if you are married. As long as you remain under that limit you can put away up to $4,000 per year through 2007 and then up to $5,000 in 2008.

Think about it, if you start contributing to your Roth IRA at the age of twenty-five, while you're still making below the income cap, then you can keep contributing to end up with nice chunk of change by the time you retire!

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