Some Seniors Only Have Until April 1 to Avoid a Dreaded Financial Penalty

The upside to saving for retirement in an IRA or 401(k) plan is getting to enjoy tax breaks on the road to building a nest egg. With a traditional IRA or 401(k), your contributions are made before taxes, thereby shielding some of your income from the IRS. Then investment gains are tax deferred until withdrawals, which are taxable, are taken in retirement.

Meanwhile, Roth IRAs and 401(k)s don't give you an up-front tax break on your contributions. But what they do offer is tax-free investment gains and tax-free withdrawals during retirement.

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Source Fool.com