A Super-Charged Roth IRA - August 13, 2005

[roth401k]

A Super-Charged Roth IRA

August 13, 2005
By Gail Buckner, CFP
Fox News

Question:
What if you could have a Roth account that had higher annual contributions and no income limits?
Answer:
If you have a 401(k), you can! (Keep reading.)

Dear Friends,

Remember the hoopla and excitement when the Roth IRA was introduced in 1997? The thought of being able to put money into an account where the growth would forever escape federal tax had everyone salivating. Even non-financial publications ran stories about how much money you’d end up with after years of tax-free compounding. The government was doing something that actually encouraged us to save — it seemed too good to be true!

“Indeed,” sniffed the doomsayers, who started predicting that the tax-free status of Roth withdrawals would be repealed almost before the ink had dried on the legislation creating the new IRA.

Huh. Here it is 8 years later and the Roth IRA is still alive and well. According to the Investment Company Institute, Americans have squirreled away about $120 billion in Roth IRAs so far. Of course, the doomsayers are still claiming they’ll be proven right..........

ENTIRE ARTICLE HERE