Think of a Roth IRA as having two buckets:

• Bucket #1: Your contributions.
Because Roth IRA contributions are made with after-tax dollars, you can generally withdraw the amount you contributed at any time without additional tax or penalty.

• Bucket #2: Investment earnings.
The growth and earnings inside the account are generally subject to additional rules before they can be withdrawn tax-free.

• This creates flexibility.
Many people hesitate to contribute to a Roth IRA because they worry the money will be completely inaccessible until retirement. While retirement savings should generally be left invested whenever possible, Roth IRA contributions can provide more flexibility than many people realize.

Bottom Line:
A Roth IRA remains one of the most powerful retirement savings vehicles available. While the goal is usually to leave the money invested for the long term, it’s helpful to know that your original contributions are generally available if life throws you an unexpected curveball.