3 Reasons a Roth IRA Is a Perfect Supplement to Social Security

Do you think you would be able to live on the average Social Security benefit of $1,522 per month in retirement? If your answer to that question is no, you're almost certainly going to need to supplement your benefit checks with your own savings and investments. The type of investments you choose and the type of accounts you manage them in will be important and could make all the difference in whether you feel financially secure in retirement.

With all that in mind, here are three great reasons why you should consider keeping those funds in a Roth IRA.

You pay taxes on your Roth IRA contributions in the year you make them, but you will be able to take withdrawals -- both of contributions and any gains -- tax-free in retirement. So these accounts are a good fit if you think you're earning about the same or less than you'll spend annually in retirement. By paying taxes now on just your contributions, you're setting yourself up to give the government less in the long run.

Source Fool.com