This Is My Favorite Account for Building a Millionaire Retirement
I've dabbled in various retirement accounts, including IRAs, employer-sponsored plans, and options for the self-employed. These accounts offer tax advantages, providing either an upfront tax break or tax-free income during retirement. However, new rules have made one account type even more attractive.
I've been a fan of the Roth IRA ever since college. Although I've made my fair share of bloopers with this account, its overall purpose has always captured my heart: Pay the taxes on your contributions now so you can enjoy tax-free income during retirement.
However, income limitations and lower contribution limits make it harder to reach the million-dollar mark quickly. While traditional 401(k)s offer higher contribution limits, they require mandatory withdrawals at a certain age, and those withdrawals are taxed.
Source Fool.com
