5 Overlooked Facts Every IRA Investor Must Know

Over 46.4 million American households use IRAs to stash a portion of their retirement savings, but despite this widespread use, there are still plenty of misconceptions about how they work. This can cause people to make poor decisions that hurt their savings' growth or land them in trouble with the IRS. If you don't want that to happen to you, make sure you understand the five IRA rules outlined below.

The government prohibits high-earning individuals and couples from contributing directly to a Roth IRA. How much you can contribute depends on your modified adjusted gross income (MAGI), which is your adjusted gross income (AGI) with certain tax deductions back in.

Image source: Getty Images.

Source Fool.com