The Common Mistakes You Should Avoid When Building Your Tax-free Nest Egg

The Common Mistakes You Should Avoid When Building Your Tax-free Nest Egg
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A Roth IRA is a fantastic vessel for anyone wanting to save for retirement. One of the best things about a Roth IRA is that while your contributions are not tax-deductible, your contributions grow tax-free.

While a Roth IRA is an excellent way for future retirees to set themselves up for a better tax situation when it comes time to distribute, there are some common mistakes you should avoid when building your tax-free nest egg.

Earning Too Much or Too Little

You cannot contribute more money towards a Roth than you acquired in earned income for the year. Earned income comes from wages, salaries, and tips received from providing services.