A Roth IRA is a fantastic vessel for anyone wanting to save for retirement. One of the best things about a Roth IRA is that while your contributions are not tax-deductible, your contributions grow tax-free.
While a Roth IRA is an excellent way for future retirees to set themselves up for a better tax situation when it comes time to distribute, there are some common mistakes you should avoid when building your tax-free nest egg.
Earning Too Much or Too Little
You cannot contribute more money towards a Roth than you acquired in earned income for the year. Earned income comes from wages, salaries, and tips received from providing services….