You learn something new every day

Today it’s “You can withdraw the first $12,000 you put into a Roth IRA, any time, any reason, no tax penalty, and since you’ve already paid income taxes at today’s bracket before you saved money in a Roth IRA, you don’t pay any taxes on what you withdraw later when you’ll be in a higher bracket.”

Suze Orman seems a bit odd to me, but it’s hard to escape her logic on this one. As soon as we’ve paid off credit card debt, I’ll suggest this to Jodi as a smart place to stash our rainy day funds!

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1 Comment

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One response to “You learn something new every day

  1. gardenwaltz

    it is a good deal. many people shy away from roths because they want/need the immediate tax benefits, but they provide the maximum tax benefit in the end.

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