Saving for Retirement


Using a Roth IRA as a wealth planning tool

October 18, 2013

Here's what to consider when deciding between a Roth IRA and a traditional IRA

What are the considerations when deciding between a Roth IRA and a traditional IRA? Joel Dickson of Vanguard Investment Strategy Group and Alisa Shin of Vanguard Asset Management Services™ suggest looking at current and future tax rates, and asking yourself, "How will my decision affect my heirs if this money will be passed on to them?"

Other excerpts from this webcast:

Important information

  • All investing is subject to risk, including the possible loss of the money you invest.
  • Withdrawals from a Roth IRA are tax free if you are over age 59½ and have held the account for at least five years; withdrawals taken prior to age 59½ or five years may be subject to ordinary income tax or a 10% federal penalty tax, or both. 
  • This webcast is for educational purposes only. We recommend that you consult a tax or financial advisor about your individual situation.

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