this post was submitted on 21 Nov 2023
445 points (94.1% liked)
Memes
45740 readers
1146 users here now
Rules:
- Be civil and nice.
- Try not to excessively repost, as a rule of thumb, wait at least 2 months to do it if you have to.
founded 5 years ago
MODERATORS
you are viewing a single comment's thread
view the rest of the comments
view the rest of the comments
This is why you gotta use a Roth IRA, if you pull from it before 59 it's heavily taxed. Forces you to save
Pretty sure you can pull contributions before 59 at anytime penalty free. Gains though and yeah you'll pay penalties and taxes on.
No, a traditional IRA would be even better for that. With a Roth, you can withdraw the principal without penalty since it was after-tax to begin with; it's only the gains that you get punished for taking out. In contrast, any amount of withdrawal from a traditional account incurs a penalty (with a few exceptions, such as using it to buy your first house or whatever).