You Can Still Fund Your Roth IRA for 2021
A Roth Individual Retirement Account (IRA) is one of the most powerful ways you can invest for your retirement. Once your money is legally in that type of account, it can potentially grow tax-free for the rest of your life.
Unlike other retirement accounts, you aren't required to withdraw money from your own Roth IRA within your lifetime. If you reach age 59 1/2 and have had a Roth IRA funded for at least five years, you can withdraw up to the entire value of your account and owe absolutely no taxes on that withdrawal .
That combination makes it so that as a general rule, if you can fund a Roth IRA, you should fund a Roth IRA. If there's a serious drawback to Roth IRAs, though, it's that you can only sock away up to $6,000 a year into one ($7,000 if you're age 50 or up). That annual limit means that if you want to build up a decent balance, you should contribute to one whenever you can. Fortunately, if you're eligible, you can still fund your Roth IRA for 2021.
Source Fool.com
