Understanding the Limits of Roth IRAs: A Guide
Intro
In the realm of retirement planning, Roth Individual Retirement Accounts (IRAs) have carved a distinct place. Their appeal lies in the tax advantages they offer and the flexibility they provide to investors. However, many people are unaware of the limitations associated with these accounts. One pertinent question arises: How many Roth IRAs can one individual have?
Each person can manage multiple Roth IRAs, but understanding the rationale and restrictions surrounding this is crucial. This article dissects these aspects, diving into various factors such as contribution limits, eligibility criteria, and optimal strategies for managing multiple accounts.
Setting Financial Goals
Importance of Setting Goals
Establishing financial goals is fundamental when it comes to managing Roth IRAs. Clear goals guide your investment choices and determine how much you need to contribute. Without an understanding of what you want to achieve, you may find yourself lost in a sea of choices. Each goal should align with your retirement aspirations, whether it be early retirement, funding education, or creating a nest egg for unexpected expenses.
How to Establish Realistic Financial Objectives
To create realistic financial objectives, begin with a comprehensive assessment of your current financial situation. Ask yourself:
- What do I have saved?
- How much can I contribute towards my Roth IRA annually?
- What is my retirement age target?
- What lifestyle do I envision at retirement?
By answering these questions, you can set achievable and measurable goals that will guide your decisions on how many IRAs to hold.
Tracking Progress and Adjusting Goals
Once financial objectives are established, regular tracking becomes crucial. Use tools or spreadsheets to monitor your contributions and growth. This allows you to see if you're on track or if adjustments are needed. If your financial situation changes—such as a raise or unexpected expenses—be open to revising your goals accordingly.
Budgeting and Expense Management
Effective budgeting complements goal setting. Knowing what you can allocate towards retirement accounts helps you make informed choices.
Creating a Personal Budget
Begin with a personal budget that outlines all income and expenses. Include your expected contributions to your Roth IRAs.
Tips for Cutting Costs and Saving Money
- Review subscriptions: Cancel those you don’t use.
- Meal plan: Reduce food expenses by planning meals.
- Automate savings: Direct a portion of your paycheck to your Roth IRA.
Tools and Apps for Tracking Expenses
Consider using budgeting tools like Mint or YNAB to track your finances efficiently. These can help you visualize spending and identify areas for savings.
Saving and Investing
The foundation of retirement is saving and investing wisely.
Building an Emergency Fund
An emergency fund is essential before maximizing IRA contributions. Aim for three to six months' worth of expenses.
Types of Investment Options
Diversify within your Roth IRA. Common choices include:
- Stocks
- Bonds
- Exchange-Traded Funds (ETFs)
Strategies for Diversifying Your Portfolio
Consider a mix of asset classes based on risk tolerance and timeline. Younger individuals might prefer stocks for growth, while those nearing retirement may lean towards bonds for stability.
Debt Management
Managing debt is crucial in your financial strategy.
Understanding Different Types of Debt
Acknowledge good versus bad debt. Student loans can be seen as good debt, while high-interest credit cards can lead to long-term financial strain.
Developing a Repayment Plan
Create a repayment strategy prioritizing high-interest debts first. This approach saves you money in the long run and frees up resources for Roth IRA contributions.
Consolidation and Refinancing Options
If applicable, explore consolidation loans or refinancing options to lower interest rates on your debts. Reduced monthly payments can enhance your ability to contribute to retirement accounts.
Retirement Planning
Planning for retirement requires foresight and strategy.
Importance of Early Retirement Planning
Starting early gives your money time to grow. Delaying contributions could severely impact your savings.
Different Retirement Accounts
Understand the options available, including 401(k) plans and IRAs. Knowing how each fits into your overall strategy is essential for managing multiple accounts effectively.
Maximizing Retirement Savings with Employer Matching Contributions
If your employer offers matching contributions for your 401(k), make sure to take full advantage. This is essentially free money that can significantly boost your retirement savings.
"Being informed about retirement accounts enhances your financial literacy and prepares you for the future."
By grasping the limits and opportunities of Roth IRAs, one can efficiently strategize for a secure financial future.
The Nature of Roth IRAs
Roth IRAs serve as a fundamental pillar in individual retirement planning, offering an array of benefits and features that make them an attractive option for various investors. Understanding the nature of these accounts goes beyond surface-level definitions; it encompasses the rationale behind their establishment, their structural advantages, and how they align with broader financial strategies. Here, we explore their significance in the context of retirement savings.
Definition and Purpose
A Roth Individual Retirement Account, commonly known as a Roth IRA, is a type of retirement account that allows individuals to contribute after-tax income. This unique structure enables the account holder to benefit from tax-free growth and tax-free withdrawals during retirement, provided certain conditions are met. The primary purpose of a Roth IRA lies in its ability to help individuals save for retirement while minimizing tax liabilities. Unlike traditional IRAs, where contributions may be tax-deductible, Roth IRAs require contributions to be made with funds already taxed, offering a distinct advantage at the point of withdrawal. This characteristic is particularly beneficial for those who anticipate being in a higher tax bracket in the future, providing an incentive to invest in a tax-advantaged manner today.
Benefits of a Roth IRA
Roth IRAs offer several compelling benefits:
- Tax-Free Withdrawals: One of the most notable features is that qualified withdrawals in retirement are tax-free. This provides financial predictability and security, particularly when planning for life after work.
- No Required Minimum Distributions: Unlike other retirement accounts, Roth IRAs do not impose mandatory withdrawals starting at age 72. This allows account holders to let their investments grow without the pressure of having to take distributions.
- Flexible Contribution Rules: Contributions to a Roth IRA can be withdrawn at any time without penalty, making it a flexible option for those who may need access to funds before retirement. However, earnings on those contributions have specific rules related to withdrawal.
- Estate Planning Advantages: Roth IRAs can be a useful tool in estate planning. Beneficiaries can inherit a Roth IRA and benefit from tax-free withdrawals, allowing for potentially significant wealth transfer.
The nature of Roth IRAs reflects a well-considered balance between saving for retirement and effectively managing tax implications. The features outlined here make them a vital component of retirement discussions, offering individuals a strategic means to enhance long-term financial health. The insights gained from understanding these accounts can empower individuals to make informed decisions about their retirement planning.
Types of Roth IRAs
Understanding the various types of Roth IRAs is essential for making informed decisions regarding retirement savings. Each type serves different needs and offers distinct advantages. Knowing the differences can assist in optimizing your investment and ensuring your retirement is secure.
Standard Roth IRA
The Standard Roth IRA is the most recognized form of this retirement account. It allows individuals to save for retirement using after-tax dollars, which means you pay taxes on your contributions now, rather than at withdrawal. This feature enables your investments to grow tax-free, and qualifying withdrawals during retirement can be taken out without any taxation.
Key benefits of a Standard Roth IRA include:
- Flexibility with Withdrawals: Contributions can be withdrawn at any time without penalties or taxes, which is not the case for earnings.
- No Required Minimum Distributions (RMDs): You are not required to take withdrawals at any age, allowing your savings to grow as long as possible.
- Possible Tax Bracket Advantage: If you anticipate being in a higher tax bracket during retirement, paying taxes now may save you money later.
Roth IRA for Self-Employed Individuals
The Roth IRA for Self-Employed Individuals, often known as a Solo Roth IRA, is tailored specifically for those who work for themselves. This account is almost identical to the standard Roth IRA in terms of tax benefits. However, it allows a higher contribution limit, which can help self-employed individuals maximize their retirement savings.
Benefits include:
- Higher Contribution Limits: In 2023, you can contribute up to $6,500 annually, or $7,500 if you are 50 or older.
- Flexible Contribution Schedule: You can choose when to contribute based on your income flows, unlike traditional pensions.
- Investment Choices: You can invest in a variety of assets, including stocks, bonds, and mutual funds, offering a diverse portfolio.
Roth Conversion IRA
A Roth Conversion IRA allows individuals to convert funds from another retirement account, such as a Traditional IRA or a 401(k), into a Roth IRA. This can be a valuable strategy for those looking to take advantage of the Roth IRA's tax benefits.
Important factors to consider include:
- Tax Consequences: Converting from a pre-tax account to a Roth account will require payment of taxes on converted amounts in the year of conversion. This could lead to a significant tax bill.
- Future Tax Savings: Once converted, all future growth within the Roth Conversion IRA is tax-free, providing potential long-term advantages.
- Eligibility Flexibility: Unlike contributions to Roth IRAs, conversions do not have income restrictions, allowing more individuals to access Roth benefits.
These types of Roth IRAs provide distinct pathways for individuals aiming to bolster their retirement savings. Understanding their features, advantages, and requirements will better equip potential investors to strategize effectively.
Eligibility Criteria for Roth IRAs
Understanding the eligibility criteria for Roth IRAs is a critical aspect of effectively managing retirement savings. The ability to contribute to a Roth IRA depends on several specific factors. These factors not only influence whether an individual can open or continue to fund a Roth IRA, but they also impact the benefits one can derive from this investment vehicle. The following sections explore the income limitations, age requirements, and contribution limits that define who can utilize a Roth IRA and under what conditions.
Income Limitations
Income limitations play a pivotal role in determining eligibility for a Roth IRA. The contribution limits are phased out for high earners. As of 2023, if an individual's modified adjusted gross income exceeds certain thresholds, they may not be eligible for full contribution.
For single filers, the limit starts at an annual income of $138,000, with the phase-out ranging up to $153,000. For married couples filing jointly, the thresholds are higher, beginning at $218,000 and topping out at $228,000. Understanding where one falls within these limits is essential, as it influences how much can be contributed to a Roth IRA, if at all.
Key Points on Income Limitations:
- Single filers with income below $138,000 can contribute the full amount.
- Contributions are gradually reduced between $138,000 and $153,000.
- Married couples filing jointly face similar income thresholds.
"Income limits determine not just access to Roth IRAs, but also the potential for maximizing savings."
The income guidelines are subject to change, so it is prudent to consult updated IRS publications for the most accurate information. Being aware of your income eligibility helps in planning a retirement strategy that aligns with your financial situation.
Age Requirements
Age requirements for a Roth IRA are less complex than income limitations but still essential for account holders to understand. There is no minimum age to open a Roth IRA, which allows minors to start saving for their future. However, contributions must come from earned income, which means the minor needs a job or some source of income.
For withdrawals, the key age is 59½. Withdrawals made before reaching this age are generally subject to penalties unless certain conditions are met. Understanding these age-related aspects is crucial for managing your contributions and withdrawals efficiently.
Important Notes on Age Requirements:
- No minimum age to open a Roth IRA.
- Requires earned income for contributions.
- Penalties apply for early withdrawals before age 59½.
Contribution Limits
Contribution limits set the boundaries for how much one can deposit into a Roth IRA annually. For 2023, the maximum contribution is $6,500 for individuals under 50 years of age. Those aged 50 and above benefit from a catch-up contribution, allowing an additional $1,000, bringing the total to $7,500.
These limits can be affected by income levels. If your income exceeds the set thresholds discussed earlier, your allowed contributions may be smaller or non-existent. Therefore, monitoring these limits annually is necessary to capitalize on Roth IRA benefits fully.
Summary of Contribution Limits:
- $6,500 annual limit for individuals under 50.
- $7,500 limit for individuals 50 and older.
- Contribution amounts may be reduced based on income levels.
Understanding these eligibility criteria is paramount for anyone considering a Roth IRA. By grasping how income, age, and contribution limits interrelate, individuals can make informed decisions about their retirement savings strategies.
Holding Multiple Roth IRAs
Holding multiple Roth IRAs can be a strategic decision for individuals looking to optimize their retirement savings. Understanding the rules and implications associated with having more than one account is crucial. Each Roth IRA has its unique attributes and can serve different financial goals. By diversifying the types of accounts held, individuals can take advantage of various investment strategies and possibly enhance their overall returns.
Furthermore, having multiple Roth IRAs allows for more flexibility in managing investments. It can help in targeting specific financial objectives, such as funding a child's education or building a retirement nest egg. However, there are also considerations to bear in mind, such as contribution limits and tax implications.
Is It Possible to Have Multiple Roth IRAs?
Yes, it is indeed possible to hold more than one Roth IRA. The law does not set a limit on the number of Roth IRAs an individual can own. This means you could theoretically open several accounts across different financial institutions.
However, it's important to note that the annual contribution limits apply to the aggregate contributions across all Roth IRAs. For instance, if the limit is $6,000 for the year, you might distribute this amount across multiple accounts but cannot exceed this total.
Additionally, having multiple accounts can complicate oversight due to several institutions managing them. Trackmg your contributions and performances becomes vital to ensure you adhere to IRS guidelines.
Strategies for Managing Multiple Accounts
Managing several Roth IRAs requires a clear strategy. Here are some approaches to simplifying the process:
- Centralize Record Keeping: Keep a detailed record of your contributions and returns for each account. A spreadsheet can help track performance over time.
- Diversify Investments: Consider investing in different assets across your Roth IRAs. This can include stocks in one account and bonds in another, providing a balanced portfolio.
- Monitor Contributions: Regularly check your total contributions to ensure compliance with the IRS limits. This can help avoid taxes or penalties.
- Consider Fee Structures: Pay attention to fees associated with different accounts. Lower fees can lead to higher overall returns.
- Review Periodically: Take time to review your overall financial strategy at least once a year. Make adjustments if necessary to align with your financial goals.
"Having multiple Roth IRAs offers flexibility, but demands rigorous management and attention to details."
Impact on Contribution Limits
Understanding the impact of contribution limits is crucial for managing Roth IRAs effectively. This section focuses on how these limits influence your ability to save for retirement and the overall effectiveness of your investment strategy. Knowing the contribution limits helps you plan your finances better, ensuring that you can maximize the benefits offered by Roth IRAs. Furthermore, it guides decisions regarding multiple accounts and their appropriate management.
Annual Contribution Maximums
The annual contribution limit for Roth IRAs is a vital factor to consider when planning your retirement. As per IRS guidelines, in 2023, the maximum contribution you can make to your Roth IRA is $6,500, or $7,500 if you are age 50 or older. These limits are indexed for inflation, so they may change over time.
When you have multiple Roth IRAs, it is crucial to remember that the total contributions across all accounts cannot exceed these annual limits. For instance, if you have two Roth IRAs and you contribute $3,000 to each, your total contribution of $6,000 is within the limit. However, if you decide to contribute $5,000 to one account and $3,000 to another, you will exceed the annual limit. This could result in tax implications and penalties.
It is also essential to remember that contributions to a Roth IRA must be made with after-tax dollars. This means you must have sufficient income to justify the contributions within the set limits. Keeping track of your contributions is vital. Using financial software or tracking sheets can help avoid any accidental excess contributions.
Aggregation of Accounts
When assessing multiple Roth IRAs, aggregation of accounts becomes a significant consideration. The IRS requires that contributions from all accounts be combined when determining whether you have exceeded the annual contribution limits. This means that regardless of how many Roth IRAs you possess, the combined contributions are subject to remain within the IRS limits.
Furthermore, if you're contemplating opening several Roth IRAs for specific investment purposes, keep in mind that these accounts can also affect your overall tax strategy. For example, if one Roth IRA is used for conservative investments while another holds more aggressive options, your overall financial picture may show varied performance. Yet, the contributions made to both accounts impact your limits.
An important detail is that the type of Roth IRA doesn’t change aggregation. Whether your account is a standard Roth IRA or a Roth IRA for the self-employed, the contributions still combine. Notably, this can provide strategic advantages. For instance, targeting specific investment goals may justify multiple accounts, but care must be taken with contributions to avoid exceeding limits.
"Maintaining awareness of annual limits and account aggregation is crucial to avoid penalties."
In summary, understanding annual contribution maximums and how account aggregation affects those limits is essential in the realm of Roth IRAs. Effective management ensures compliance with IRS guidelines, maximizes potential growth, and allows for streamlined financial planning.
Withdrawal Rules for Roth IRAs
Withdrawal rules are a crucial aspect of managing Roth IRAs. Understanding these rules can greatly influence your retirement planning and financial strategy. It is imperative to grasp both the qualified and non-qualified withdrawal conditions, as these have significant implications for your savings and taxes.
Qualified Withdrawals
Qualified withdrawals from a Roth IRA are those made under specific conditions that meet IRS standards. The key feature of qualified withdrawals is that they are tax-free, which is a major advantage of Roth IRAs. To qualify, you must satisfy two main requirements:
- Age Requirement: You must be at least 59½ years old.
- Account Duration: Your Roth IRA must have been open for at least five years.
Once these conditions are met, you can withdraw your contributions and earnings without any tax implications. This provision makes Roth IRAs particularly attractive for long-term retirement planning. For instance, if you have invested significantly over the years, the tax-free nature of these withdrawals can result in substantial financial advantages.
"Qualified withdrawals allow individuals to enjoy their retirement savings without the burden of additional tax expenses."
It is essential to note that even if you take distributions under these qualified terms, they will not affect your ability to continue making contributions, as long as you meet the salary and contribution limits.
Non-Qualified Withdrawals
Non-qualified withdrawals are those that do not conform to the aforementioned criteria. When you withdraw funds from your Roth IRA without having met the age requirement or the five-year rule, you might face adverse tax consequences. The main points to consider include:
- Tax on Earnings: If your withdrawals include earnings that are not qualified, this money will be subject to ordinary income tax.
- Penalties: In addition to taxes, a 10% early withdrawal penalty may apply unless an exception is met. Exceptions include disability, first-time home purchase, or certain medical expenses.
- Order of Withdrawals: It's important to recognize that contributions are always withdrawn first. Therefore, if you have made contributions over the years, these can be accessed tax-free and penalty-free any time.
Understanding these distinctions helps you plan your withdrawals strategically, especially if you expect to need funds prior to retirement age. By carefully considering your options, you can optimize your financial situation while safeguarding your long-term savings goals.
Tax Considerations Related to Roth IRAs
Tax considerations play a significant role in understanding Roth IRAs. These accounts are known for their tax advantages, which set them apart from other retirement savings options. A thorough grasp of tax benefits and implications is crucial for anyone considering a Roth IRA. This section will delve into the vital elements of tax-free growth and the implications of contributions, shedding light on why these factors are essential for effective Roth IRA management.
Tax-Free Growth
One of the most attractive features of a Roth IRA is the tax-free growth it offers. Unlike traditional retirement accounts, where taxes are paid upon withdrawal, Roth IRAs allow account holders to grow their investments without incurring taxes.
That means all earnings—interest, dividends, and capital gains—are not taxed as long as certain conditions are met. This benefit can create a significant advantage over a long investment horizon, as it allows compound growth to work without a tax burden later on.
To qualify for tax-free growth, investors must wait until they are at least 59½ years old and have held their Roth account for at least five years. This helps ensure that Roth IRAs remain a genuine long-term investment vehicle.
Tax Implications of Contributions
When it comes to contributions, distinguishing between Roth IRAs and other retirement plans is vital. Contributions to Roth IRAs are made with after-tax dollars, meaning that individuals do not get a tax deduction for their contributions during the tax year.
This raises an important consideration: while you pay taxes upfront, withdrawals during retirement, including earnings, are generally tax-free.
Moreover, the contributions are flexible. Investors can withdraw their contributions at any time without tax penalties, as long as they do not touch the earnings before meeting the qualified withdrawal criteria.
In summary, understanding the tax implications of both growth and contributions is necessary for tax-savvy retirement planning. By maximizing tax-free growth and navigating contributions wisely, individuals can enhance their financial futures.
Reasons to Consider Multiple Roth IRAs
When considering the management of retirement savings, many individuals overlook the potential advantages of holding multiple Roth IRAs. This section seeks to provide clarity on this aspect, emphasizing the positive impact that such a strategy can have on long-term financial health. The primary reasons to consider multiple accounts involve investment diversification and specific financial goal targeting.
Diversification of Investments
Diversification is a fundamental principle of investing. By holding multiple Roth IRAs, an individual can allocate funds across various investment options. This may include stocks, bonds, or mutual funds. Each investment type comes with its own risk and potential for growth. Spreading investments over different accounts can help mitigate risks associated with market fluctuations.
A person can adjust the asset allocation in each Roth IRA based on their risk tolerance and investing strategy. This leads to potential benefits such as:
- Risk Management: One account can hold high-risk investments, while another could focus on stable, income-generating assets. If one area suffers a downturn, the other might perform well, balancing the overall portfolio.
- Access to a Broader Range of Financial Products: Different financial institutions offer varying investment products. By maintaining multiple Roth IRAs, investors can capitalize on unique offerings that align with their strategy.
It is essential to keep track of how each account is performing. Monitoring the investments and reallocating funds as necessary can optimize returns. Overall, a diversified approach via multiple accounts builds resilience against market volatility while enhancing growth potential.
Targeting Specific Financial Goals
Each Roth IRA can serve a distinct financial objective. For instance, an individual might set one account for long-term growth and another for a particular short- to medium-term goal, such as buying a home or funding a child’s education.
Through this method, they can tailor their contributions and investment strategies to meet specific deadlines and financial needs. Some benefits include:
- Defined Priorities: Keeping separate accounts allows for clear intent for each investment. This separation aids in aligning actions with overarching financial aspirations.
- Flexible Withdrawals: Different accounts may have varied withdrawal strategies based on the goals they serve. Understanding when and how to access funds helps maintain control over financial planning.
- Customized Risk Levels: Financial goals often dictate the level of acceptable risk. Investors can structure the mix of investments in each account accordingly, ensuring that goals are pursued without overexposing oneself to unnecessary risk.
In sum, holding multiple Roth IRAs can provide depth to an investment strategy. Each account serves as a tool, helping individuals not only push toward their broader financial goals but also fortify their investments against unpredictable market conditions.
Opting for multiple Roth IRAs can be a strategic move for those aiming to advance their retirement savings effectively. Making informed decisions regarding the management of these accounts can yield substantial rewards in the long run.
Common Misconceptions About Roth IRAs
Understanding the common misconceptions surrounding Roth IRAs is crucial for individuals aiming to make informed decisions regarding their retirement savings. These misunderstandings can lead to errors in account management, limitations on savings, or missing out on important benefits. By unraveling these misconceptions, investors can better grasp the flexible nature of Roth IRAs and how they fit into long-term financial planning. Misconceptions often stem from misinformation or lack of complete knowledge about features and regulations tied to these accounts.
Limitations on Account Numbers
One notable misconception is the belief that there are restrictions on the number of Roth IRAs an individual can maintain. In fact, there is no legal limit to the number of Roth IRAs a person can own. This flexibility allows individuals to diversify their investment strategies across different institutions or products. However, it is critical to still adhere to contribution limits, which aggregate across all accounts. An individual can open multiple accounts for various reasons, such as targeting different investment focuses or taking advantage of differing fees offered by various institutions.
Assumptions About Tax Benefits
Another common misunderstanding relates to tax benefits of Roth IRAs. Some individuals assume that all contributions to a Roth IRA are tax-deductible, similar to traditional IRAs. However, this is not the case. Contributions to a Roth IRA are made with after-tax dollars, meaning you pay taxes on the money before you deposit it into the account. The notable benefit comes during withdrawals, as qualified distributions are tax-free. This misunderstanding can lead individuals to miscalculate their current and future tax burden. A clear understanding of these tax implications allows investors to better evaluate their retirement strategies.
Roth IRAs offer a unique advantages when planning for retirement, but clarity around their function is essential for effective financial management.
End
The importance of examining the parameters surrounding Roth IRAs cannot be overstated. These accounts offer significant benefits for retirement savings, but understanding the limitations helps individuals avoid common pitfalls. This article underscores the implications of having multiple Roth IRAs, including the intricacies of contribution limits and tax considerations. Knowing how many Roth IRAs one can manage efficiently can directly influence one's financial future. By grasping these fundamentals, readers can make informed decisions that align with their retirement objectives.
Summing Up the Key Points
In summary, this article emphasized several critical factors regarding Roth IRAs:
- Types of Roth IRAs: Various options such as the Standard Roth IRA, Roth IRA for the Self-Employed, and the Roth Conversion IRA cater to different needs.
- Eligibility Rules: Understanding income limits, age requirements, and contribution limits is vital for effective planning.
- Multiple Accounts: While having multiple Roth IRAs is possible, contribution limits apply across all accounts. Careful management is essential.
- Withdrawal Rules: The differences between qualified and non-qualified withdrawals affect retirement strategies.
By synthesizing these points, individuals can navigate the Roth IRA landscape more adeptly.
Final Thoughts on Roth IRA Management
Effectively managing Roth IRA accounts requires a clear strategy. Diversifying investments across multiple accounts can enhance growth potential. However, one must remain vigilant about annual contribution limits to optimize tax benefits.
Considering one's financial goals is key to maximizing the effectiveness of Roth IRAs. It is crucial to be aware of the tax implications and withdrawal rules that govern these accounts. Continuous education and vigilant management are advisable, as they collectively shape a more secure financial future.
“Understanding your retirement options is as important as saving for retirement itself.”
By keeping well-informed and proactive, individuals can harness the power of Roth IRAs to their advantage.
