A Roth IRA has long been considered one of the smartest retirement tools out there. You pay taxes now, grow your investments tax-free, and withdraw in retirement without owing Uncle Sam another dime. Sounds perfect, right? Not so fast.
While Roth IRAs do offer major tax benefits, there are several hidden rules and lesser-known scenarios where you could still face tax consequences. Whether it’s penalties, income limits, or issues with conversions, the “tax-free” label isn’t as airtight as you might believe.
