Here's What It Means to Be Middle Class in 2017 -- and How to Benefit From It

Here's What It Means to Be Middle Class in 2017 -- and How to Benefit From It

If you clearly aren't rich but also aren't struggling to make ends meet, you might assume that you fall into America's middle class. So it may or may not surprise you to learn that the median household income in the country reached just over $59,000 in 2016, up 3.2% from the previous year. If you're a middle earner, here are a couple of things you should know.

While there's nothing wrong with saving for retirement in a 401(k) or traditional IRA, Roth IRAs offer certain benefits that other plan types simply can't match. For one thing, Roth contributions get to grow completely tax-free, so that when the time comes to take withdrawals in retirement, you won't owe the IRS a portion of your distributions. Furthermore, unlike traditional IRAs or 401(k)s, Roth IRAs don't impose required minimum distributions, which means you can enjoy tax-free earnings on your account indefinitely. You can also leave your Roth IRA behind to your heirs, should you decide to go that route.

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Source: Fool.com