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You are never to young to start a Roth IRA. (Individual Retirement Account.) In fact, this is a very smart move for a young person to make and a great way to be able to save a large amount of money for your future. What a great investment account this is.

With a Roth, your earnings may be withdrawn after age 59 tax-free, provided the account has been open for 5 years and contributions can be withdrawn at any time without penalty. Earnings cannot be withdrawn without a penalty until the account has been open for 5 years and there is No Required Minimum Distribution (RMD) at age 70 1/2. Withdrawals of any earnings before age 59 1/2 or before the 5 year aging requirement has been satisfied, may be subject to a 10% early withdrawal penalty unless the following exceptions apply: qualified higher education expenses; qualified first home purchase (lifetime limit of $10,000); certain major medical expenses; certain long-term unemployment expenses; disability; or substantially equal periodic payments.

Once you decide that a Roth IRA is right for you, you then need to find a provider to help you meet your needs. A banker, a broker, a financial advisor or insurance agent will be more than happy to assist you in setting up an IRA account and will provide you answers to any questions you may have. (Remember you can sit on it for a while before jumping to open an account after. You don't have to open an account during your first initial visit. Any advisor will tell you that.) Before you settle with any provider, be sure you ask about the fees-start-up and annual maintenance fees may apply. During the setting up of your newly acquired IRA, you will have to choose a beneficiary-this is the person who will receive your IRA at the time of your death.

Remember, you aren't required to report regular contributions to a Roth IRA, however, unless you also took distributions from your Roth IRA. Therefore, you don't have to do a lot of paperwork or keeping of records.

Live life to the fullest and look forward to a wonderful stress free retirement!

Learn more about this author, Dawn Thompson.
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