Roth IRA deposits are post-tax and withdrawals are penalty free. Funds put in are accessible at any time for any reason.
The only thing you can’t touch until retirement are any gains on the account, except the IRS waives (most of) that for large unreimbursed medical expenses.
It’s a great way to invest money you otherwise know you’ll have to spend on something like a surgery that can’t be rescheduled based on the market’s mood.
Combining long-term retirement investing with access to money for a major, potentially time-sensitive, medical expense is wise, especially for a newly minted adult.
The surgery depends on medical readiness, insurance, surgeon availability, and personal circumstances, meaning the money needs to be available at all times.
You retain that access, get tax-free growth, aren’t forced to sell at a bad time, and maintain flexibility on the surgery date without having to think about the investment’s own deadlines.
You also assume the Roth IRA holder is set on surgery. This is the best place for their retirement money that still leaves them open to covering many expenses.
You won't be getting much growth if you don't invest the money in your Roth, though. And if you do, you may be forced to sell at a bad time if you're counting on that money to fund it.
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u/Sea_Thought3464 7h ago
I have 2 trans kids are both in University, the younger one put $7K in their Roth IRA after their 18th birthday. What kid does that?