Roth IRAs, and their bigger sister, the Roth 401(k), provide the opportunity for savers to develop investment returns on a tax-free basis. A Roth IRA allows children of inherited IRA owners to grow the inherited Roth tax-free for ten years past the date of the death of the last spouse. For some perplexing reason, Roth 401(k)s are subject to Required Minimum Distributions, and Roth IRAs are not. In a down market when you expect that the market will recover, is an optimum time to convert an IRA to a Roth. If you do and you have the funds, set up Roth IRAs for yourself, your kids, or your parents, stash more in your 401(k) Roth options, think about Mega-Roth or convert Roth IRAs.

Source: Forbes March 17, 2020 10:52 UTC