3 Important Rules You Must Know About Roth IRAs for Tax-Free Gains

Roth IRA: Maximizing Tax-Free Gains

Are you considering a Roth IRA for your retirement savings? Learn the essential rules to ensure you benefit from this powerful investment tool.

1. Earned Income Requirement

• You need earned income to fund a Roth IRA
• Contributions must come from sources such as a job, not gifts or allowances.

2. Age Limits

• No age restrictions on Roth IRA contributions
• You can contribute at any age as long as you have earned income.

3. Early Withdrawals

• No penalty for early removal of contribution
• Tax implications on gains for withdrawals before age 59 1/2.

Understanding and following these rules can help you secure a tax-efficient retirement strategy with a Roth IRA.