Core Insights - Roth IRAs are valuable financial tools but require adherence to specific rules to avoid mistakes [1] Group 1: Withdrawal Rules - Roth IRAs have a five-year rule for initial account opening and funding; early withdrawals that do not meet this rule incur tax penalties on earnings [2] Group 2: Tax Considerations - The tax-free growth and distributions of Roth IRAs are significant benefits, but individuals should also consider their current tax situation and potential savings from pre-tax retirement accounts [3] Group 3: Spousal Contributions - Contribution limits exist for Roth IRAs based on earned income, but spousal contributions can be made even if one spouse has no earned income [4] Group 4: Investment Strategies - It is essential to invest Roth IRA funds correctly to maximize tax-free growth; working with an advisor can help align investments with risk tolerance and objectives [5] Group 5: Documentation of Conversions - Proper documentation of conversions from traditional IRAs to Roth IRAs is crucial to avoid long-term complications; conducting a Roth audit may be beneficial to verify eligibility and manage IRA balances [6]