3 Secrets of Roth IRA Millionaires
Reaching the million-dollar mark for retirement savings feels like a triumph for most retirement savers. The only thing that might make reaching the milestone even more rewarding is if that money was accessible without any tax liability.
Well, that's a possibility. Unlike traditional IRA accounts (sometimes called contributory IRAs) funded with pre-tax contributions and taxed as money is withdrawn, distributions from Roth IRAs are tax-free. You simply forego any tax-deduction benefit when putting money into them.
An elite group of investors has taken masterful advantage of these differences -- along with the tax rules regarding them -- to become Roth IRA millionaires. And not workplace Roth 401(k) accounts either, where larger contribution limits make it far more likely to reach the seven-figure mark. We're talking about ordinary Roth IRAs with the same yearly contribution caps that apply to traditional IRAs.
Source Fool.com
