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If I start a Roth IRA in a couple weeks, and keep contributing $7k per year to it, for years & decades, When will it pay off? When can it be money for me to spend? (lemmy.world)

submitted 11 months ago* (last edited 11 months ago) by LemmyKnowsBest@lemmy.world to c/personalfinance@lemmy.ml

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And does it multiply while it's invested in the Roth IRA?

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[–] Usually_Lurker@lemmy.world 8 points 11 months ago (1 children)

You can take the principle out without penalty. Profits need to wait until 59 1/2 to be penalty free.

https://www.your-roth-ira.com/withdrawing-roth-ira-principal.html

[–] Fermion@feddit.nl 6 points 11 months ago

As a note, you can't "borrow" from a roth. So if you withdraw principle, you're limited by the max contribution rate in building up the principle again.

So while it's penalty free, there are limitations to keep in mind.