A look at some strategies for the Roth IRA.
There are various ways to use a Roth IRA. Here are some ideas, along with
discussion about when they work well and when to avoid them.
Real Estate and Prohibited Transactions
If you put real estate in your IRA and ignore the prohibited transaction
rules, you're playing with fire.
Dealing with Wrap Fees
If you hold your Roth IRA in a wrap account, you should be aware of a ruling
that allows you to use outside money to pay the wrap fees.
Roth IRA and College
You should be able to take penalty-free distributions from your Roth IRA to pay college
expenses. But in most cases you can't take tax-free distributions from the
earnings in your account, and that means the Roth IRA isn't always the best choice for
Roth IRA and Saving
for a Home
The strategies here are similar to the strategies for college savings, but with an added
twist: if you fit the right fact pattern, you can take a tax-free distribution from the
earnings in your account for this purpose even if you're under age 59½.
Does it make sense to roll a regular IRA to a Roth IRA later in life? In many cases the
answer is yes, but careful planning is needed to avoid shifting income into a higher tax
IRAs for Minors
A minor can set up a Roth IRA but only if the child has taxable compensation
Here are the other topics in our Guide to the Roth IRA: