You may, at any time, take out the original investment amount, but not the earnings, at any time without tax liability..
The Roth is the absolute best kept secret in the modern personal finance history of America. And you, my friend, have learned said secret. And, to answer you question, you cannot go wrong.
be reminded that you are limited to the amount you can invest each year in IRA's
since any dividend you gain from an IRA remains in the account and automatically increases your IRA value, you don't actually receive the dividend to do with as you like
the dividends are already working in the account
As of now, no, there will be no taxes. However, a future Congress can always change that.
Remember, you can have as many IRAs as you want but the total contributions in any given year cannot exceed $5500.
I already have a ROTH IRA and it's with a major mutual fund company.
I want to open another ROTH IRA and add only dividend-paying stocks to it (ie GE, APPL, IBM, O, etc.).
Here's my question: in this new ROTH IRA, if I re-invest all of the dividends from the stocks I purchase for the next 40 years (this is considering I pay the taxes upfront, as is the idea behind ROTH IRAs), will those dividends be subject to taxes at any point during my ownership of the ROTH IRA?
In other words, how can a person go wrong by putting only dividend-paying stocks in a ROTH IRA if he/she doesn't plan on touching it over the next 40+ years? I would think this would be too easy and have the potential for too much money to be made.
If a link exists to explain this, I'd appreciate it.
