Roth IRA

A Roth IRA is a retirement investing account where you don’t get taxed for any earnings or gains.

If you earned 50% from $1000 in a Roth IRA, you wouldn’t pay taxes on the $500 that you gained.

There are also no age restrictions for Roth IRAs.

So you could start putting money aside even when you’re under 18!

So what’s the catch?

You need to pay penalties for withdrawing money from Roth IRAs under two conditions in most cases.

Number #1: you may pay penalties on withdrawals if you’re younger than the age of 59.

Number #2: you may also pay penalties if your account is less than 5 years old.

The takeaway: you usually need to wait for a long time before you reap the benefits from a Roth IRA.

Bloom currently doesn’t offer Roth IRAs because of the penalties that come with withdrawals.