Rick Donovan, Edward Jones, went through how a family’s income is taxed from 2013 through past years. The rates and salary breakdowns have varied greatly over the years. Rick took the group through what sort of plans would work best for a small business owner, which had lower penalties than others, and then went on to explain the Roth IRA.
Roths can be great for parents who want to set aside funds for their kids to go to college, but unlike a 529, if the kids decide not to go to college the funds in a Roth IRA can be used for something else.
Roths also make it easy to be passed down from family member to family member, where children can benefit from their parents establishing a Roth IRA. Eventually, small withdrawals to have to be made, but ask your financial planner more about this.
There are many other benefits, so if you would like to learn more, please email Rick. Rick is a member of the Salmon Creek Business Association.