Most Americans Are Clueless About This Important Roth IRA Feature
Workers with access to a 401(k) tend to use their company-sponsored plans as retirement savings vehicles, since 401(k)s have generous annual contribution limits and open the door to employer matching dollars, otherwise known as free money for retirement. But IRAs have their benefits, too -- especially Roth IRAs.
Though Roth IRAs don't offer an immediate tax break on contributions -- they're funded with after-tax dollars -- they do offer tax-free growth on invested savings, and tax-free withdrawals in retirement. They're also the only tax-advantaged retirement savings plan that doesn't impose required minimum distributions (RMDs) on seniors upon their turning 70 1/2.
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Source Fool.com
