These Roth IRA Mistakes WILL Cost You
The two big costly mistakes made with Roth IRAs are:
#1 Exceeding Contribution Limits: Roth IRAs have annual contribution limits set by the IRS. In 2023, the annual limit for those under 50 years old is $6,500 ($7,500 for those 50 and older). Contributing more than allowed can have IRS penalties of 6% per year until fixed.
#2 Early Withdrawals: Roth IRAs offer tax-free qualified withdrawals in retirement, but taking early distributions before age 59½ can result in taxes and penalties. You need to hold the account for 5 years and be older than 59 ½ to eliminate them.
#shorts #rothira #iramistakes #retirementplanning
Costly Mistakes to AVOID with Roth IRAs #shorts
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