Easily Save Thousands When You Take Advantage of a Roth IRA

One of the best ways to be more efficient with your retirement savings is using tax-advantaged accounts. If you're going to be saving for retirement -- and you absolutely should be -- you might as well get some tax breaks in the process. While a 401(k) plan is offered through your employer, an IRA must be opened on your own, similar to a regular bank or brokerage account.

There are two types of IRAs: Roth and traditional. Although you technically contribute after-tax money into a traditional IRA, your contributions may be deductible, depending on your income, filing status, and whether or not you're covered by a retirement plan at work. Your contributions to a Roth IRA aren't tax-deductible, but you can take tax-free withdrawals in retirement.

Image source: Getty Images.

Continue reading

Source Fool.com