A Roth IRA is also a worthwhile strategy for those who want to increase their assets for the benefit of their children. How? Roth’s are not subject to the same income taxes at the death of the IRA creator as is a traditional account. Accordingly, if you think you’ll be in a higher tax bracket when you retire and can recoup the money you paid in taxes when creating a Roth, you might come out ahead in the long run.
Predicting future tax rates is pretty much a guess, especially when talking about individuals who have years to go until they retire. As a result, experts feel that Roth IRAs are more attractive for individuals in their 20’s and 30’s with many years of future growth.
Speak to your estate planning attorney to get a better understanding of Roth IRAs and other investment tools.
