THE ROAD LESS TAXED • 63
The Roth Revolution Wt h ihnekn omf Ro os tt hs aavcec rosu tnht isn. kA so fwt ea xd-ifsrceues rs ee tdi rienmCehnatp at es rs eTt ws , ot h, me yo os tf treen- tirement savings can be split into two categories: • Tax-Deferred Saving | These are IRAs and 401(k)s. The mm oe an ne sy yionu tphaeys et a xaec sc oi nu nt ht se fi us t un roet otna xbeodt .h Ty ho iusr ac op np trroi ab cuh- tions and all the associated growth in the account. • Tax-Free Saving | These are Roth IRAs and Roth 401(k)s, w4 0h1i c( hk ) sa. rI en ttaaxx-ef rde edai fcf ceor eu nn tt lsy, yforuo mm a tkrea dc oi tni ot rni ab lu tIiRo An ss wa int dh ab fet et ar -xteadx wd ohlel anrys o. Ou naccec ef us sn tdhseamr ei ni nr et ht ier ea mc ceonutnot ,r tphaesys wt hoenm’ t to your heirs. 37 Roth accounts were first created in 1997 through the Taxpayer RspeolinesfoArectd t(htheelye’grieslantaiomne)d. for U.S. Senator William Roth, who 38 Roths got off to a slow start. By 2000, only around $77 billion of U.S. retirement accounts were in Roths 37 s u Tr eh et or ec oa nr es us lot ma eq ur eaql iuf iier de mf i ne na nt sc iaanl da nl i dmti at ax t pi ornosf easrsoi ou nnadl Ra ob tohu ta cycoouurni tnsd, isvoi db-e ual situation. 38 staMrtiecarsh/Ibsusistitn. eEsBsS-aCnOd. -2m0a2n4a. g“RemotehnItR/Aro”thht-tipras://www.ebsco.com/research-
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