<h1>The Advantages of a Roth IRA: Tax-Free Growth Explained</h1>
Tyler?
Yep.
Looks like you're going to retire with $3.2 million in your IRA?
Yep.
Okay, so you owe us nothing.
You have to owe us something. It's an IRA.
No, it's a Roth IRA. I paid you a few bucks back in the 80s when I opened the account.
Right, and now you have close to $2 million as capital gains. Those are taxed at 20% for you.
No, it's a Roth IRA. Tax-free growth.
Okay, well, we'll be waiting until you take your required distributions, and we'll get our cut then.
I don't ever have to take required distributions from a Roth IRA.
Yeah, well, you can't touch that money until 59 and a half.
Another myth. I can take back those contributions for whatever I want, whenever I want.
Fine, well, we'll be waiting until you give that money to your kids to tax them.
Well, now you're really going to be upset. My kids won't owe taxes on any of this either.
Wait, so you paid us a few bucks back in the 80s?
Yep.
And now you owe us nothing on $3.2 million?
Hey, I didn't write the rules. You did.