Don't Touch a Roth IRA Until You Do This -- Or You Could Be Penalized
The Roth IRA (individual retirement account) can be an attractive savings vehicle if you want to lock in tax-free income during retirement. You can pay your tax bill now and enjoy a pile of tax benefits later. But here's the downfall: You won't be able to make direct contributions to a Roth IRA if you make too much money. If your income unexpectedly tips over the threshold, you'll have to take action immediately to avoid penalties.
Before you throw your money into a Roth IRA, here are a few requirements you should be aware of to avoid any unwanted surprises later.
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Source Fool.com
