5 Things You Might Not Know About Roth IRA’s!

(don’t forget to checkout the video of this blog)

Roth IRAs are one of the best tools for growing money tax-free.

Every dollar that grows within that Roth IRA can be taken out without any taxes owed.

It can also be transferred to your beneficiaries completely tax-free.

So really, if you’re trying to achieve a tax-free retirement you likely need some Roth IRA money.

But the rules surrounding Roth’s can be kind of confusing.

Here are 5 things you might not know about Roth IRA’s:

✅ Contributions you make can be withdrawn ANY TIME completely tax and penalty-free

All of the money you put in can be accessed unlike most retirement accounts without the dreaded 10% penalty.

✅ There is a one-time 5-year rule that you must satisfy to be able to collect your EARNINGS tax-free

Once you make your first Roth Contribution the clock starts and once 5 years has passed, you can access your earnings tax-free (these are still subject to a 10% early withdrawal penalty however).

✅ When you do a Roth Conversion there is a SEPARATE 5-year rule for EACH conversion

This means you can’t access that money that was converted via a Roth conversion until another 5-years has passed….

But, this ONLY applies to conversions done prior to 59–1/2‼️

✅ Once you reach 59–1/2 the first 5-year rule is the ONLY one that applies

That means you can do conversions after 59–1/2 and take the money out immediately afterwards with no limitations.

✅ Roth IRA’s have NO required minimum distributions (and transfer tax-free)

You NEVER have to take money out of your Roth IRA, so you can allow it to grow, and grow, and grow….

….completely tax-free 🤝

Plus, you can transfer all of that tax-free money to your loved ones when you pass.

Let’s chat 💬😎