HONOLULU (HawaiiNewsNow) - Many of us are familiar with IRAs - individual retirement accounts. But there's also something called a "Roth IRA" and with the new year comes some changes that affect that type of savings account. Tony Orme, senior vice president with Bank of Hawaii, joined Sunrise to explain.
Benefits of Roth IRA
· Grows tax free
· No minimum amount to withdraw
· Withdrawals can be tax free for heirs
Who Should Convert to a Roth IRA
· Can pay taxes due without tapping retirement funds
· People in higher tax bracket at time of retirement
· 5-10 years left before needing retirement funds
· People wishing to leave IRA to heirs income tax free
