Don't Make This Absurdly Expensive Roth IRA Mistake
The Roth IRA is widely lauded as one of the best ways to save for retirement, and for good reason. While the contribution limits are fairly low, steady deposits to a Roth IRA can make a world of difference when it comes to building tax-exempt savings. Still, many prospective retirees make a key mistake in the process, and it's absolutely critical that you aren't falling victim to this common error.
Here, we'll review the biggest -- and most expensive -- mistake you can make with your Roth IRA.
The Roth IRA allows savers to sock away a certain amount for retirement every year. The hope is that the money will continuously compound over the years, earning both price gains and dividend distributions along the way. What's more, the contributions you make to a Roth IRA are after-tax, which means that when you go to withdraw the money in retirement, you won't have to worry about any additional tax liability.
Source Fool.com
