Craig Wear explains how Roth IRAs work: you contribute up to $6,500 yearly, pay taxes now, then withdraw everything tax-free in retirement. You can pull out contributions anytime without penalty, but earnings stay locked until age 59½.
$6,500 per year.
59 and a half years old.
Contributions (but not earnings).
Roth IRA is how you retire rich and tax free. Roth IRA equals millionaire's best friend. Roth IRA equals tax free. Compounding equals potential millionaire status. But here's what people miss. You can pull out contributions anytime, with no penalty, but not the earnings. Until you're 59 and a half and there's a cap, you can only contribute $6,500 a year. And that changes pretty often. So what's the key? You pay taxes now, so the future. You pay nothing. And if you're young, it's a powerful move.
