Whether you opened a Roth IRA years ago or have had your eye on one, you probably have a sense of what a great investment vehicle it is. A Roth IRA allows you to contribute money you’ve already paid income tax on (after-tax dollars). Then, if the account has been open at least five years, you can withdraw funds after age 59 1/2 and pay no taxes on the withdrawal or earnings.
Roth IRAs can be an attractive addition to your portfolio, but boy, are they surrounded by rules and regulations. There are so many that it’s easy to become confused, believing rumors and myths about this investment powerhouse. Here are some of the most common Roth IRA myths, followed by the true scoop.
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