How does a Roth IRA work and why is it important?
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So normally when you invest money you have to pay taxes on whatever money you made. However with Roth IRA’s you can let money grow and when you take out the money you don’t have to pay taxes on the gains.
The caveats are you can only put in so much money each tax year and in order to not pay taxes on the gains you have to withdraw the money after you’re 60, for a first time home purchase, for college expenses, or for birth expenses.
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