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Roth IRAs and emergency savings accounts have different objectives, strengths, and weaknesses

Benzinga
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60% Informative

A recent " CNBC : Your Money" video claimed that Roth IRAs can double as emergency savings accounts.

The idea is that the money in a Roth IRA continues to grow tax-free, and you can then take money out of the account for emergencies.

Young adults should avoid viewing Roth IRA as an emergency savings account due to the penalty fee.

originally appeared on Benzinga.com 2025 Benzinga.com . Benzinga does not provide investment advice. All rights reserved..

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