tax-free withdrawals

Tax-free withdrawals are funds you can take out from certain accounts without owing any taxes on the money. These accounts are designed to encourage saving by offering tax advantages. Examples include Roth IRAs and certain health savings accounts (HSAs). In a Roth IRA, for instance, contributions are made with after-tax dollars, so when you withdraw in retirement, both the original contributions and the earnings are tax-free, provided rules are met. This feature can help maximize your savings growth and provide tax-compatible income during retirement.