retirement

6 advantages of Roth IRAs

Retirement » 6 advantages of Roth IRAs

It's probably the best option
7 of 7
Next
It's probably the best option © Minerva Studio/Shutterstock.com

It's probably the best option

For people who are looking for relief from today's tax bill, making a contribution to a traditional IRA offers a welcome tax deduction.

"If your tax situation is very high today and you expect it to be lower after you retire, then you want to use a regular IRA or 401(k)," says Armstrong.

But taking advantage of the tax break today leaves many of the valuable benefits of the Roth on the table.

"In most cases our analysis has indicated that if you are eligible and have options, the Roth IRA over time is going to deliver a greater benefit in retirement. The ultimate benefit is in retirement because they are tax-free and can stay in the tax-free account even longer. In all the comparisons, putting money into the tax-free option will typically outweigh the other options," Hevert says.

Previous
7 of 7
Next

advertisement

Show Bankrate's community sharing policy
          Connect with us
advertisement
9 myths about IRAs
MORTGAGE REFINANCE AUTO CDs CREDIT CARDS
Product Rate Change Last week
30 year fixed 3.82%  0.02 3.80%
15 year fixed 3.05%  0.04 3.01%
5/1 ARM 3.19%  0.02 3.17%
 
View Rates in your area Next
Product Rate Change Last week
30 year fixed refi 3.90%  0.03 3.87%
15 year fixed refi 3.12%  0.01 3.11%
10 year fixed refi 3.15%  0.02 3.13%
 
View Rates in your area Next
Product Rate Change Last week
60 month used car loan 2.68%  0.03 2.65%
48 month used car loan 2.76%  0.11 2.87%
60 month new car loan 3.12%  0.01 3.13%
 
View Rates in your area Next
Product Rate Change Last week
1 Year CD 1.07% --0.00 1.07%
2 Year CD 1.18% --0.00 1.18%
5 Year CD 1.76%  0.01 1.77%
 
View Rates in your area Next
Product Rate Change Last week
Balance Transfer Cards 15.86% --0.00 15.86%
Cash Back Cards 16.37% --0.00 16.37%
Low Interest Cards 11.10% --0.00 11.10%
 
Next
advertisement
Partner Center
advertisement

Connect with us