The Importance of Flexibility: Comparing Roth IRA, Traditional IRA, and 401(k) (Highlighting Roth IRA Advantages)
Roth IRA vs Traditional IRA vs 401(k): Why Flexibility Matters (Roth IRA Benefit) Are you saving for retirement? If so, you might have heard about a Roth IRA - but did you know that this type of account offers some unique benefits when it comes to accessing your money? In this video, we'll be talking about how a Roth IRA allows you to make tax-free and penalty-free withdrawals of your contributions at any time. First, let's back up a bit and explain what a Roth IRA is. It's a type of individual retirement account that allows you to contribute after-tax dollars, meaning you don't get an immediate tax deduction for your contributions like you would with a traditional IRA. However, the big advantage of a Roth IRA is that your money grows tax-free, and you won't owe any taxes on your withdrawals in retirement (as long as you follow the rules). But what if you need to access that money before you retire? That's where the flexible withdrawal rules of a...