The Money Mustache Community
Learning, Sharing, and Teaching => Ask a Mustachian => Topic started by: Bearblastbeats on November 15, 2018, 08:36:51 AM
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I opened up a schwab IRA account but am curious as to how these work and if I am able to withdraw money from it if needed.
Schwab has a suggested minimum balance of $1000 for accounts. With an IRA there may be tax penalties for withdrawing prior to age 59 1/2.
Did I open the wrong account?
Should I open a standard brokerage account to buy and sell securities and be subject to tax on Gains and Losses?
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If you expect to be able to withdraw without penalty, then yes, you'd want a brokerage account, not an IRA.
I have a brokerage account with Schwab and wife has a Roth. What can be done with the Roth is quite restricted compared to the brokerage.
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So I should open a brokerage account for when I want to withdraw from, and keep the roth for retirement?