Why Limit Roth IRA Contributions?

  1. 21750 POINTS
    Jim Winkler
    CEO/Owner, Winkler Financial Group, Houston, Texas
    That is a great question! The caps on contribution limits on your Roth IRA were put there to prevent the wealthy form using them as tax shelters. The purpose of the Roth IRA's are to allow people of more modest means to be able to save for retirement, and special tax advantages were installed in the IRA to encourage that saving. The caps were put in place to help prevent the abuse of those advantages by those who don't truly need them. Thanks for asking, I hope that helped!
    Answered on July 29, 2014
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