5 Myths About Roth IRAs
If you have a Roth IRA, that’s fantastic — you are planning for the future. But do you really understand them? Here are five common misconceptions about Roth IRAs.
MYTH: You’ll get an immediate tax break.
That is the case with a traditional IRA. However, if you do everything right, you’ll get to withdraw the money tax free!
MYTH: The contribution limit doesn’t change.
Maybe it doesn’t change every year, but it changes with inflation.
MYTH: You must invest in mutual funds (or stocks).
IRAs can hold a range of securities, but mutual fund companies may limit you to the funds offered by their company.
MYTH: IRA providers are all the same.
Investment options, annual or trade fees and even inactivity fees are things to consider when choosing a provider.
MYTH: Roth IRAs help, but aren’t that powerful.
Even though they have contribution limits, they are long-term investments that can be withdrawn tax free!
To read the full article 5 Roth IRA Misunderstandings That Could Cost You click here.
Credit to:
5 Roth IRA Misunderstandings That Could Cost You
