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Weighing your retirement options is an important process, and looking into the best Roth IRA opportunities is crucial to this process. Well-thought out choices are vital to making your retirement funds work for you.

The Roth individual retirement account is a retirement vehicle in which contributions are after-tax rather than pre-tax. What this means is that you have already paid taxes on the money you are putting into this account, and you will not have to pay taxes on this money again or upon distributions upon withdrawing the funds at retirement age.

If you think that you will be earning more when reaching retirement and will therefore be in a higher tax bracket than you are presently, then a Roth IRA may be the best choice for you. However, it is important to consider that you will not gain the immediate advantages of a Traditional IRA-namely, the lowering of your current tax burden. Essentially it is best to think of this decision as being taxed now versus later.

If you decide to start up a Roth IRA, know that there are Roth IRA limits to be aware of, such as the income limit. Earning more than $105,000 as a single filer?

You may be ineligible to contribute fully to the Roth. This figure changes annually and you need to look at the IRS website, www.ors. gov, for the most up to date information. Another issue is that earnings distributions are not permitted to be made without penalty before age 59 . Furthermore, you must have your Roth IRA open for a minimum of five years to avoid penalties. Stay aware of contribution limits for the IRA as well. As of this writing, the current limit is $5,000 per year. Remember to subtract what you have already contributed to any traditional IRAs you may have-the total of all IRAs, both Roth and traditional, cannot go above $5000.

If a Roth, individual retirement account, sounds like something you are eligible for and would like to consider, and then you also have the option of a Roth Ira rollover. This is where funds, which are currently in a traditional retirement account, are switched over to a Roth. This is a potential windfall for you, due to tax advantages upon retirement and the potential for a tax-free source of income for you or your heirs.

You will still need to pay taxes on the funds that you rolling over, which mean you, pay now rather than later.

In addition, beginning in 2010, the AGI (adjusted gross income) limits in place now will be changing, opening the Roth rollover up to those who are not now eligible. Check the Internal Revenue Service on these important changes.

You also may not be aware that the IRS will be permitting you to spread out tax payments on conversions in the year 2010 to both 2011 and 2012.

The IRS is going to be easing conversions and this may be relevant to you.

The best Roth IRA choice will essentially make for a tax-free retirement, and for that reason they are increasingly popular. Understanding your options, particularly in light of the upcoming changes to the tax code, is vital to making the most of your hard-earned retirement income.

The right IRA decisions will ensure that your retirement money is working hard for you.
Bill Timmer is passionate about helping people achieve their retirement dreams. And you? Please visit his site on Top ROth IRAs .

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