If you have fully funded your 401(k)and profit-sharing plans,you may choose to enhance your retirement savings by using this plan that allows you to withdraw money from the account tax-free and penalty-free after five years.

Question

Quizplus · Accepted Answer

A Roth IRA is a retirement savings plan that allows you to contribute after-tax income and withdraws money tax-free in retirement. The money can be invested in a variety of options, providing the potential for growth over time. Additionally, you can withdraw contributions at any time without penalty or taxes, and after five years, you can withdraw earnings tax-free as well. This makes it a great option for enhancing your retirement savings once you have maxed out contributions to other retirement plans.

If You Have Fully Funded Your 401(k)and Profit-Sharing Plans,you May