What is a Roth IRA and how does it work? Good question!
A Roth IRA is a powerful savings tool that allows you to contribute part of your income each year and allows your money to grow tax-free.
Roth IRAs have no age limitations, but you do have to make under $135,000 per year to take advantage of its benefits.
You’re able to contribute up to $5,500 per year, and if you’re over 60 you can make that $6,500.
The best part is that your earnings are tax-free.
If you max out your Roth IRA contributions each year for 20, you would have $110,000 -- and that’s not accounting for the 7% average growth that the market typically sees each year.
Whether it’s your only retirement plan, or in addition to your work-sponsored 401k, a Roth IRA is a valuable tool in your investment arsenal.
Open an IRA with Swell and use the promo code Q&A50 to get a $50 bonus in your account.