If you earned 50% from $1000 in a Roth IRA, you wouldn’t pay taxes on the $500 that you gained.

A Roth IRA is a retirement investing account where you don’t get taxed for any earnings or gains.

So what’s the catch?

You need to pay penalties for withdrawing money from Roth IRAs under a few conditions.

You may pay penalties on withdrawals if you’re younger than the age of 59.

1️⃣ Withdrawal Restrictions based on age.

2️⃣ Account age

You may also incur penalties if the Roth IRA is less than 5 years old.

So, you should only invest money you won't need for a while in a Roth IRA 🤔

And make sure to open a Roth IRA way before you retire!

If you contribute responsibly, the benefits of a Roth IRA are incredible since your money has so much time to grow! 🥳