1 Excellent Retirement Savings Account You'll Wish You'd Opened Sooner
A Roth IRA is perhaps the most powerful retirement savings account you can own. Once your money is in the account, it can grow tax-free in your Roth IRA for the rest of your life. If you do choose to withdraw money from your account once you qualify, those withdrawals are also tax free. On top of that, the withdrawal rules for a Roth IRA are such that money you directly contributed to a Roth IRA can be taken out at any time, for any reason -- with no taxes or penalties.
If there's a downside to Roth IRAs, it's that your annual contributions are limited. For most people under age 50, the annual limit is $6,500 in 2023, and for those age 50 or above, that limit is $7,500. If your income is high enough (or if you're married and file separately), even those fairly modest contribution limits get reduced. Because of those tough contribution limits, the Roth IRA can quickly become one excellent retirement savings account you'll wish you opened sooner.
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Source Fool.com
