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Bluffton Location

117 E Elm Street

Bluffton, OH 45817

02/19/2019 - Secret Benefits of Roth IRAs ** "How will I know if an IRA contribution is beneficial f

Little known facts about Roth IRAs

They have a “hidden secret” that provides a ton of flexibility

While we encourage folks to save long-term for retirement, the Roth IRA has a “hidden secret” that provides a ton of flexibility. When you have had any Roth IRA for a period of 5 years or more, you are able to withdraw the contribution portion (not the gains) without tax or penalty. There are many situations where this can be helpful:

  • Children’s education 
  • Home purchase 
  • Health concerns 
  • Or any other emergency type situation

It is important to know that this can impact your savings for retirement, so it should not be done without careful consideration and advice.  The time between now and April 15 is a great time to talk to an adviser about this or about investment strategies you can use to reduce your taxes.

A word to the wise:

Your tax preparer will not always have the time or inclination to advise you about traditional IRA contributions which would reduce your taxes and, once you file, it may be too late to take advantage of an IRA deduction.

Maybe, instead of automatically authorizing your preparer to e-file without talking to you, you might want to ask for a conversation first.  Ask - would this be a good year to make a contribution to a traditional IRA? What tax impact is there if I make a contribution this year?  We can quickly and easily help you get an IRA set up if you have the cash available to make a contribution AND if it is tax-advantageous to do so.

Contact us at Faith Investment Services if you want to have a conversation at 419-358-4207.