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comment by user-inactivated
user-inactivated  ·  3537 days ago  ·  link  ·    ·  parent  ·  post: What Do I Do Now? After College.

    Roth IRA?

Doesn't the money put into an IRA have to be income rather than just money for it to be a tax shelter?





rob05c  ·  3537 days ago  ·  link  ·  

It can come from anything you've already paid taxes on.

More importantly, with a Roth IRA, the principal can be withdrawn without penalty (but not the interest). Which means you can use it as an emergency fund.

Whereas a Traditional IRA has huge penalties for withdrawing anything before you turn 60.

thenewgreen  ·  3537 days ago  ·  link  ·  

Probably, I have no idea. I've never had money that wasn't income.