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Why Choose A Roth IRA?

IRA accounts are probably the best choice for those who want to save and invest money for their retirement. Why is that? Well, first of all, within an IRA account, you money will be able to grow tax-free because of all the tax advantages for retirement savings. The money within the individual retirement arrangement (IRA) will be used to purchase stocks, bonds, and mutual funds and even real estate. There some regulations regarding investments when it comes to real estate, for example you cannot invest in a property that you own, but as long as you follow the rules there shouldn’t be any problems. Also, once you reached the age of 59 and a half you will be able to withdraw the money from the account without having to pay any taxes or penalties. Penalties apply only to those who wish to withdraw the money from the account before reaching the age of 59 and a half.

So, contributing with money to an IRA makes sense, but there are many types of IRA accounts, which one offers the most benefits? This depends. For most people, the Roth IRA offers a lot of advantages. When you contribute with money to the IRA, the amount will be taxed depending on your tax bracket. A traditional IRA will tax you when you decide to withdraw the money while the Roth IRA doesn’t to that as the money in the account is already taxed. This is a big advantage as it is believed that in the next few years taxes will grow, thus, you will pay a lot less being taxed now than later. Also, your money will grow tax-free and will remain that way until you decide it is time for you to retire.

Also, a traditional IRA will tax you if you decide to keep the money in the account after reaching the age of 70 and a half, without starting distributing them. A Roth IRA has no such penalties and you will be able to keep the money in the account for as long as you wish. Also, with a Roth IRA, your heirs will be able to inherit the account after your death, and keep the money in it in order to grow them with the help of safe investments.

You can contribute to a Roth IRA with $5000 yearly or $6000 if you are over 50, thus allowing you to save enough money for your retirement. This is very important as you should plan ahead on how much you wish to contribute and when you wish to retire in order to make sure you have enough money for a carefree retirement.

As you can see, a Roth IRA has lots of advantages besides growing your money in order to help you enjoy your retirement years. Still, you should research on other types of IRA account before making the decision of opening a Roth IRA account, although you will probably find that this is the best choice for you. So stop wasting time and open a Roth IRA account in order to safely save money.

Casey Trillbar is the editor of, which is a website aimed at supplying articles, information and resources to people considering the use of a Roth IRA Agreement for their retirement.