While the main point of a Roth IRA is to help you save for retirement (along with any other type of retirement savings account), life can take a sharp turn where you may be faced with the option to withdraw from a Roth IRA, which can result in potential taxes and/or penalties. Here we will go over what rules to keep in mind.
There is no denying the tax-free benefits of Roth IRAs. Whether in the form of a direct contribution or a conversion, adding money into a Roth IRA is generally a good idea. With a conversion, however, there are a few caveats to keep in mind as it may not always be the best move.