What about a recharacterization of a roth to a traditional?

What is the difference between a Roth IRA and a Roth IRA term cd?

• What is the difference between a Roth IRA and a Roth IRA term cd? Does the Roth Cd act like a regular cd but with tax free interest? When the Roth CD term is up, do I have to roll it over into another Roth Ira cd? If I end the Roth Cd at the end of the term, is there a penalty?

• Answer:

  Let me explain. You can take the money out of the Roth IRA account at anytime, but you may need to place the money back into the account or you will be taxed. A Roth IRA is a retirement account which requires $2500.00 and may be withdrawn when you are 59 1/2. You will not be taxed as long as you take this money out after your 59 1/2. Take the money out before 59 1/2 and you may be taxed. A Roth IRA CD has a higher interest rate than the Roth savings account. Keep your money in here and you can earn more money. The roth IRA accounts(savings and CD) are designed to be withdrawn after your 59 1/2. Please don't put your money here unless you want to save it for your retirement. Join my storeonwheels group in yahoo groups when you have money or business questions.