Take Another Step for Your Financial Future ICMA-RC s Payroll Roth IRA

The other major benefit of Roth IRAs is that unlike traditional IRAs and qualified retirement plans, Roth IRAs don’t have required minimum distributions (RMDs) during the life of

Roth IRAs provide a dual estate planning benefit: Not only are distributions to your heirs income-tax free, but the amounts you pay in taxes on the income you contribute to the Roth

But remember: You’ll generally owe state and federal income taxes on withdrawals from your tax-advantaged retirement plans (but not on withdrawals from Roth IRAs and Roth

The key differences between traditional and Roth IRAs are that contributions to Roth IRAs are made with after-tax funds and qualified distributions are not included in taxable

Caution: Though the federal government does not count your IRA accounts among your assets when determining financial aid eligibility, it does consider how much money you contribute

For 2010 you are also eligible to contribute the lesser of 100% of your compensation, or $6,000, as reduced by (1) application of the special income and filing status limitation

You or your beneficiary(ies) will not be required to include in income, for income tax purposes, a distribution paid from a Roth IRA, whether it be the return of a contri- bution or

Beneficiaries of both traditional IRAs and Roth IRAs must take distributions after your death. IRS regulations offer the beneficiary several options for taking distributions.