Maximize your Roth options – Retire daily at TheStreet: advice, analysis and more on finance and retirement

By Jada Diedrich, CPA

Roth IRAs are a great way to build your retirement nest egg, help your kids learn financial responsibility, and save money on taxes. Before we dive deep into this popular investment strategy, let’s first examine the basics: When you make qualifying withdrawals from a Roth IRA, you pay no income taxes. The government allows you to contribute $6,000 ($7,000 if you are over 50) each year if your modified adjusted gross income (MAGI) in 2022 does not exceed $144,000 for a single taxpayer or $214,000 for a jointly filed couple amounts. If you reach this income bracket, you cannot make a direct Roth IRA contribution.

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