5 Roth IRA Rules You Probably Don't Know
The Roth IRA is a powerful but frequently misunderstood retirement savings vehicle. If you have a Roth IRA or are considering opening one, it's important to understand the rules that govern their operation -- or you could find yourself liable for rather nasty fees and penalty taxes. Here are some of the most important Roth IRA rules that you may not know.
In 2017, the annual contribution limit for IRAs is $5,500 (plus an additional $1,000 catch-up contribution if you're 50 or older). However, what many people fail to realize is that this limit includes all your contributions to all the different types of IRAs you may own. In other words, you may contribute only $5,500 in total, split between your traditional IRAs and your Roth IRAs. Exceed this contribution limit and you'll be liable for penalty taxes until you fix the excess contribution.
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Source: Fool.com
