According to the articles, the main groups who should invest in a Roth retirement account include:
- Younger and lower-income workers who expect to be in a higher tax bracket when they retire, as the Roth IRA allows paying taxes now at presumably lower rates and taking tax-free withdrawals later. This makes it advantageous for long-term growth and tax benefits in retirement.
- Individuals who want tax-free income during retirement and prefer not to have required minimum distributions (RMDs) during their lifetime.
- Those who want flexibility to withdraw contributions anytime without taxes or penalties.
- People who want to leave money to heirs tax-free and potentially allow the account to grow tax-free for an extended period.
- Individuals who anticipate tax rates might rise in the future, allowing them to lock in current tax rates on converted balances.
- New earners at the start of their professional journey, retirees, and workers at all stages in between as Roth IRAs can provide tax savings throughout life.
In summary, Roth IRAs are particularly suited for younger investors, those expecting higher retirement tax brackets, and individuals wanting tax-free growth and withdrawals, as well as estate planning benefits.
