The potential for tax-free distributions in retirement, tax-deferred growth, and a wide range of investment options make the Roth IRA advantageous to many investors focused on trying to accumulate wealth for retirement.
- Earnings potentially grow tax deferred (provided certain requirements are met).
- Qualified distributions are tax free and penalty free after the five-year holding period if taken
- after age 59½
- for first-time home purchase expenses ($10,000 lifetime limit)
- in the event of death or disability
- No age requirements, but there are income limits.
- Not subject to required minimum distributions (RMDs) while owner is alive.
- No dollar limit on the amount that may be converted to a Roth IRA for investors who meet the adjusted gross income limit.
- May help clients build wealth
- May lower income tax liability for beneficiaries
- More than 80 mutual funds to choose from, including risk/reward based asset allocation funds and target date funds based on asset allocation strategies
- Global asset management expertise of MFS
- Account and fund information access via the Internet and telephone
- Customer service representatives available from 8 a.m.to 7 p.m. ET, Monday through Friday