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What is a Roth IRA and how does it work?

By
Nicole Sara Sivens
October 25, 2018
3 min read
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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.

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