One of the most misunderstood benefits of the Roth IRA, in short, is FLEXIBILITY.
What do I mean by flexibility. Well, in particular, most people either don’t know or are misinformed about when you can take money out of their Roth IRA free of penalties or taxes. Namely, you can take out the contributions you put into your Roth IRA at any time for any reason without penalties or taxes owed.
For example, if you contribute the maximum amount possible into the Roth IRA in 2019, $6,000, you can take that same amount out the next day or the next year, whenever you like, at any age, for any reason, without being penalized or taxed.
This is from IRS Publication 590-B:
Are Distributions Taxable? You don't include in your gross income qualified distributions or distributions that are a return of your regular contributions from your Roth IRA(s). https://www.irs.gov/publications/p590b#en_US_2018_publink1000231057
Now, the main purposed and benefit of contributing money into the Roth IRA is to leave the funds in there to invest and grow for years to come, but it’s important to know your options. My hope is that by knowing all the benefits of the Roth IRA, you’ll become more inclined and feel less barriers to fully funding your Roth IRA every year. My theory is that if you can get yourself to make it a habit of fully funding your Roth IRA each year, then you’re more likely to keep the funds in there for when you need it most — when work is no longer a desired option or a possibility.