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There are several tax-free investment options well worth looking into.Depending on your situation, there are details here to see if any of these three plans are sensible financial options for you: Roth IRA, Municipal Bonds, 529 Plans.

A)You may meet the requirements to set up Roth IRA. The eligibility requirements and tax-free benefits of an IRA are straightforward and worth knowing about.

Your eligibility is based on your Adjusted Gross Income, and whether you file your tax return as a single person or whether you file jointly. Your age enters into the eligibility requirements only by setting limits on your contributions. For example, in 2007, the contribution limits are $4,000 if you are under age 50 and $5,000 if age 50 and over. However, unlike a traditional IRA, , you are still eligible to contribute to a Roth IRA if you are age 70 1/2 or older and you have earned income.

Your Adjusted Gross Income or AGI determines your eligibility to contribute to a Roth IRA. The AGI ceiling is linked to whether you file singly or jointly.
Filing a single tax return? You are eligible to make a full Roth contribution if you AGI is less than $99,000.If your AGI is between $99,000 and $114,000, you can put a portion (with a gradual decline) of your contribution into a Roth IRA and the remainder into a traditional IRA account.

Filing jointly? Your AGI would need to be less than $156,000 for 2007. You can make a partial contribution as a joint filer if your AGI is less than $166,000 for 2007.
With a Roth IRA, your earnings grow tax-free.

Although your contributions to a Roth IRA,are not tax-deductible, the contributions can be withdrawn at any time under certain conditions without penalty or tax. Earnings are free from federal tax if they are withdrawn after age 59 and the account has been open for more tan 5 years.

Many people make contributions to their Roth IRA to help reach their retirement goals. Consider opening a Roth IRA and see your savings grow tax free whie you enjoy the peace of mind of knowing that you are preparing for your future.

Any money you put into a Roth IRA grows absolutely tax free.

B) Municipal bonds are tax exempt

A city, county, or state governments issues municipal bonds for major building major projects for their locality such as schools, highways, hospitals, and other projects. Investors like buying Municipal Bonds because of their tax advantages.

Municipal bonds look good to the investor because these municipal bonds are tax exempt when it comes to federal

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