IRA

In general, contributions to a Roth IRA are made using your after-tax dollars. Thus, there is no upfront tax savings to you, which may seem a bad deal on your current year's finances. However, the key advantage of this type of IRA is if you start receiving distribution come retirement time, you will not have to pay taxes on that. In addition, you can make an early withdrawal … [Read more...] about 7 Quick Facts About Roth IRA Contributions

A distribution is considered an early distribution if it is made before you reach the age of 59 1/2 years. When you make an early withdrawal from IRA (Traditional), the funds will be included in your gross income and you will have to pay taxes on that. Please note that all distributions are subject to your regular tax no matter what reasons you have for making the … [Read more...] about Early Withdrawal From IRA (Traditional): 9 Ways To Avoid the 10% Penalty