4 Things Everyone Gets Wrong About Roth IRAs

You probably know that a Roth IRA is a great way to save for retirement on top of an employer-sponsored retirement plan. You've no doubt heard about the sweet tax advantages, too: Forgo a tax break today, watch your money grow tax-free for a few decades, and then get a source of income in retirement that the IRS can't touch. Roth IRAs also have a lot of flexibility. For example, unlike a 401(k) or a traditional IRA, you can withdraw your contributions before you're 59 1/2 without owing taxes or a 10% penalty.

But there are a few big misconceptions about how Roth IRAs work. Here are four things you need to know that everyone else gets wrong.

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Source Fool.com