Aside from the possible tax benefits a Roth IRA provides, one of its most appealing characteristics - in comparison to other retirement plans or investment opportunities - is that the funds may be used by the account holder for anything they wish and are not exclusively destined for retirement. This means that if your son or daughter is heading out to college and there isn’t enough income available to pay for tuition, you could dip into their Roth IRA to help defray the costs.
Of course, it is always recommended that funds already destined as savings for retirement be used for their original purpose. However, since contributions to a Roth IRA can be accessed anytime tax and penalty free (as long as 5 years have passed since the initial contribution), Roth IRAs can function as an aid for unexpected or unprepared for life expenses. Nonetheless, if earnings were to be withdrawn before the account holder is 59 ½ years old, the withdrawal may qualify for an exception under IRS guidelines. If the withdrawal of earnings doesn’t qualify for an exception, a 10% penalty fee will be exacted.