<prompt> Human: Are there any risks andor disadvantages to this?EDIT: Thanks for the advice guys n gals! As a recent 23-yr old grad who is close to maxing both his yearly roth ira filling his e-fund, I was just curious as to why I wouldnt just dump at least 75 of my liquid assets into a roth when the gains are so much higher. I have a separate 401k but company match is only 4. They compensate with ESOP. For reference, I am using a wisebanyan for my roth ira with 70 stocks which I know is risky 8.1 risk score by their metric  <response>: It seems that pretty much everyone is assuming that you mean putting your money into the stock market. If you are not already maxing out your Roth IRA there is no disadvantage to putting cash from your emergency fund into a Roth IRA so long as you hold it in cash or equivalent in the Roth IRA. The advantages are twofold. 1 You dont get taxed on whatever meager interest income you get2 In a future year that you do max out your Roth IRA contributions but still want to contribute more to your Roth IRA for retirement you can just recreate the emergency fund outside of the Roth IRA and repurpose the money that has already been contributed. For example: Year 1 - 2000 contributed as retirement to Roth IRA, 3500 as emergency fund. Year 2 - 5500 contributed as retirement to Roth IRA, 3500 emergency fund created outside of Roth IRA, 3500 in Roth IRA reassigned to retirement. Totals: 11,000 in Roth as retirement, 3500 in savings as emergency fundvs. Year 1 - 2000 contributed as retirement to Roth IRA, 3500 as emergency fund in savings Year 2 - 5500 contributed as retirement to Roth IRATotals: 7,500 in Roth as retirement, 3500 in savings as emergency fund, 3500 in savings as retirement 