Roth individual retirement accounts offer an enticing benefit: tax-free investment income in retirement.

Once someone has had the account for at least five years and reaches 59 1/2, all withdrawals are untaxed. This advantage can be costly, as converting a traditional IRA to a Roth triggers income tax that could have been deferred for years or even decades.

Register or login for access to this item and much more

All On Wall Street content is archived after seven days.

Community members receive:
  • All recent and archived articles
  • Conference offers and updates
  • A full menu of enewsletter options
  • Web seminars, white papers, ebooks

Don't have an account? Register for Free Unlimited Access