Pub. 5 2015-2016 Issue 6

16 O V E R A C E N T U R Y : B U I L D I N G B E T T E R B A N K S - H E L P I N G C O L O R A D A N S R E A L I Z E D R E A M S FEATURE ARTICLE Helping this generation realize their retirement dreams will translate into the word-of-mouth referrals that millennials value. EDWARD CARL SENIOR BUSINESS CONSULTANT ASCENSUS Underfunded Boomers Consider the Roth IRA S eventy-six million baby boomers are shift- ing toward retirement at a rate of 10,000 boomers per day. But many boomers don’t feel financially ready for retirement. Accord - ing to a 2014 survey by the Transamerica Center for Retirement Studies*, 65 percent of boomers expect to retire after age 65 or not at all. Fifty-two percent expect to continue working after retire- ment. And 62 percent cite the need for income and benefits as the reason for continuing to work. As the working boomers pass age 70½, tax favored savings options become limited. Some may have the option of continuing to take advantage of their employer’s retirement plan. But the Traditional IRA will no longer be an option for regular contributions. So what savings option is available for working boomers to continue building their nest egg? The answer is a Roth IRA. The Roth IRA does not have an age limit for regular contributions like the Traditional IRA. Roth IRA owners can continue to contribute past age 70, provided they have earned income. Because many boomers still will be employed, it is likely the earned income requirement will bemet. Also, the Roth IRA does not experience savings erosion from required minimum dis- tributions like Traditional IRAs and employ-