What are the benefits of a Roth IRA?

Roth IRAs have a few unique advantages as well: You can withdraw your contributions at any time, for any reason, without incurring income taxes or penalties. In certain situations, you can withdraw earnings early without paying penalties, like for a first-time home purchase.

Is a Roth IRA a good investment?

Also note that a Roth IRA is simply a tax-advantaged account you use to invest; the investments are what carry risk. Before choosing your investments, consider doing research or seeking help from a finance professional. What are some alternatives to Roth IRAs?

Can I use a Roth IRA if my income is over the limits?

If your income (as measured by MAGI) is over the IRS limits, the only way you can take advantage of a Roth IRA is by converting money from an existing retirement account, such as a traditional IRA. 4 There is a cost, though.