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'Open A Roth IRA And Fund It With Just $1': Suze Orman Explains Why The 5-Year Clock Matters So Much
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Financial expert Suze Orman is urging Americans not to wait when it comes to opening a Roth IRA.
The reason comes down to the "five-year rule," a little-understood rule that determines when your Roth IRA money can truly be withdrawn tax-free.
Why Roth IRAs Are So ValuableA Roth IRA is funded with after-tax dollars, meaning you don't get a tax break when you contribute.
The Five-Year Rule for ContributionsOrman explained that the five-year rule does not apply to your original contributions.
The timing becomes especially important if you open a Roth IRA later in life.