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Why a Roth IRA May Be Particularly Beneficial

February 22, 2024

Many are aware that tax-free earnings growth and the ability to pass assets to beneficiaries on a tax-free basis make Roth IRAs a popular retirement savings strategy. But did you know Roth IRAs can be particularly beneficial to women preparing for retirement? On average, women tend to live longer than men1, so they need to save more for retirement to ensure their income lasts upwards of 25 years. However, because women tend to make less money over the course of their careers, their overall savings rates tend to be lower than men2. That’s where a Roth IRA can help.

How Can a Roth IRA Help?

  • As of 2024, you can contribute up to $7,000 per year ($8,000 if you’re 50 or older).
  • Money is contributed after tax, so when you make a distribution, you’ll receive the funds tax-free, provided you follow the Roth IRA withdrawal rules.
  • Roth IRAs allow account owners to contribute as long as they work, regardless of age.
  • Unlike Traditional IRAs, Roth IRAs aren’t subject to required minimum distributions (RMDs), which means your assets can keep working hard for you for a longer period of time.

Reach out today if you’d like to learn more about Roth IRA benefits and eligibility.

1 https://time.com/5538099/why-do-women-live-longer-than-men/

https://www.payscale.com/data/gender-pay-gap

This communication is designed to provide accurate and authoritative information on the subjects covered. It is not, however, intended to provide specific legal, tax, or other professional advice. For specific professional assistance, the services of an appropriate professional should be sought.