4 Reasons Why Everyone Should Have a Roth IRA -- Including You

If you're saving money for retirement, you've taken an important first step in preparing for your future. But you shouldn't limit yourself to just traditional, tax-deferred IRA and 401(k) accounts. A Roth account can help your retirement income go much further by saving you money in a number of ways, particularly when it comes to taxes.

With a traditional retirement savings account, you get a tax break on the money you put into the account, but there's no break on the money you take out. Roth accounts are the other way around: you don't get a tax break on your contributions, but distributions are totally tax-free.

That may not sound like such a great deal on the face of it, but consider this: once you retire, you'll be limited to whatever income you get from Social Security, your retirement savings accounts, and perhaps a part-time job. Being able to keep all the money that you're taking from your retirement savings accounts (instead of paying a percentage to Uncle Sam) can make the difference between living comfortably in retirement and struggling to make ends meet.

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Source: Fool.com