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bluebluesky
Roth IRA or Traditional IRA
2300
6
2007-10-31 11:03:00
If you have 401K, you can use Traditional IRA. If you qualify (salary do not exceed an amount, forgot how much), you can put $4000 (after tax money) into your Roth IRA account. The earnings in your Roth IRA account will not be taxed.
Yes it is true. You can withdraw it at any time, because it is your after tax money. But the problem is you can deposit a maximum of $4000 a year. If you take it out, you are not taking the advantage of the earnings.
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