Ace of the Retirement World - The Roth IRA

There are many types of retirement accounts out there, including: SEP IRA, Simple IRA, 401(k), standard IRA, 403(b), and Roth IRA. Today, we are going to focus on one! That one happens to be one of the most flexible and potentially one of the most advantageous retirement accounts available - the Roth IRA.

Why the Roth you ask? Let's take a look at some of the biggest advantages.

1. You are putting in "after-tax" money, and once your money is inside this account, your money is now free from taxes - FOREVER!! Your money can grow without the hindrance of any sort of taxation. How great is that!? 
2. There is no rule regarding when you are forced to start withdrawing money, like there is in a 401(k) or IRA. In a typical retirement account, an individual must begin taking distributions once they reach age 70 1/2. A Roth has no such requirement, which means you can withdraw your money when YOU want to or use it as part of your estate plan to pass on to future generations. 
3. The more the merrier! You can contribute to a Roth even if you are already participating in a 401(k) plan through your employer. 
4. You can get more dollars inside a Roth than you can a regular IRA. Granted, both have the same $5,000 limit ($6K if you are over 50 years of age), but in a regular IRA, only $3,750 is yours, assuming you are in a 25% tax bracket. In a Roth, all $5,000 is yours and it all grows tax free and can be withdrawn tax free.