Roth IRA

• Reasons for not establishing the Roth IRA
• Roth IRA contributions: Limits and Tips
• Convert into Roth IRA or not to convert?
• Direct Rollover to a Roth IRA
• Don't pay twice just because of Roth IRA
• Go Roth! Save more for your retirement
• Save for the tuition for your children

SEP IRA

• SEP IRA Rules
• SEP IRA limits for 2010

Online Resources

• Roth IRA Rules
• 401k Rules
• Sep IRA Information

If you have already read the articles about the good sides of joining the Roth IRA, and you might think, that it has only advantages, or I did not take care about the other side of this retirement plan. If you thought so, it was a huge mistake. As each retirement account this one is also not perfect and has some bad sides that cannot be ignored if you are considering joining this retirement plan. So before you will make a decision, read this short list with explanations.

Low incomes as a way to avoid the taxation:

• Only by gaining a very low income, you will not be obliged to pay taxes. I do not have to mention that low income is always a disadvantage and the problem is that if you will earn even a bit more than you are allowed to avoid taxes, you can gain less in the future, in fact. So the best solution is to earn either very less or very much- to cover the difference.

But on the other ways, after a successfully led talk and setting your demands, the taxation does not have to be so high. This way however provides much difficulties and inconvenience that you wish to omit.

Penalty in case of a to early withdrawal:

• Early withdrawals are penalized. Of course- you can take your money as often and as soon as you wish, but there again, you will have to pay a penalty. Of course there are some exceptions that are made for the customers in the troublesome financial situation or became disabled, but in fact no one wishes to have right to an early withdrawal- they are given only in case of serious accidents, or poverty but if you cannot afford paying your tuition fees or are willing to buy your first flat or other property- you can also get them without being penalized.

You have to pay immediately:

• The taxes are required to be paid immediately. It means, that when the taxes will be lower in the future, the customer will just waste his or her money. Of course the taxation rate has a tendency rather to go up than down, but everything can happen. So I cannot tell you exactly, whether it is an asset or a drawback, it will depend on the government, so if you can afford, pay the taxes now. However, present tendencies of heightening taxes shows rather that this demand is rather an asset. But on the other hand there are made some decisions about lowering taxes, so it may occur, that a retired person paid his money pointlessly and have to face lower incomes in the future. And less pleasant retirement time.

As you have noticed, the Roth IRA is not always a perfect solution and as each undertaking has also some drawbacks that should be noticed before setting up your own retirement plan. Some of them are not so disturbing, but should be well known unless you want to be disappointed by your new retirement account.

The Final 403(b) Regulations and Related Guidance