An individual retirement account (IRA) can sound like a prison sentence once you start reading all of the fine print about what you are and aren’t allowed to do with your money once you commit it to this savings endeavor. It may feel like you should kiss your cash goodbye and hope you see at least part of it at age 60. Although a Roth IRA is considered the more flexible type of account for reasons that will be discussed later, it still typically holds account users to certain restrictions, the biggest of which is not accessing their money until retirement. But what happens when you do commit to a Roth IRA and then need to close out of it early for any number of emergency or contingency reasons?
When closing a Roth IRA, you’re going to suffer steep penalties in terms of fees and also the paperwork necessary to actually retract your money earlier than the agreed-upon maturity date….