Took me 2 years to realize I was paying for the wrong brokerage account type

I was using a standard taxable account for my Roth IRA contributions for almost 2 years, just dumping money in and watching it grow. It wasn't until I tried to withdraw some cash and got hit with a tax bill that I realized I never actually opened a Roth IRA account. Has anyone else made a boneheaded mix-up like this with their accounts?

2 comments

2 Comments

aarons3612d ago

Heard a podcast say brokerages bank on people mixing up account types. You catch it yet?

the_blair11d ago

@aarons36 The same trick plays out everywhere though, not just brokerages. Banks bury their free checking fine print, phone companies hide auto-renewal terms in tiny font. It's like they're all betting you'll just click past the details and move on with your day.