You don't need thousands of dollars to open an individual retirement account (IRA), one of the best vehicles available to build savings. Financial firms love IRAs because they tend to stay in one place. The keys to truly harnessing the power of Roth IRAs or traditional IRAs are understanding your eligibility, the rules, and adding items to your account consistently over time. This means calculating how much you can invest in an IRA each month, but it also means choosing the investments that will exist within your IRA.
Mandatory Minimum Distributions (RMD) require IRA holders aged 72 or older to withdraw a certain amount from their IRAs each year. If your income exceeds those limits, the Roth Backdoor IRA strategy allows you to open a Roth account by converting money from a traditional IRA. Moving your funds from a previous employer's 401 (k) to a Roth IRA is a reasonably simple process, and most 401 (k) and IRA providers are well-equipped to handle it.