Saving for retirement is more important than ever, with threats to other forms of retirement income. For many retirement savers, a Roth IRA is by far the best way to make the most of what you're able to set aside for retirement while getting great tax benefits.
In the following video from The Motley Fool's series on retirement investing, sponsored by TD Ameritrade, Fool consumer finance expert Dayana Yochim talks to Dan Caplinger, the Fool's director of investment planning, about the basics of the Roth IRA. Dan explains what makes Roth IRAs different, as they offer tax-free growth that also doesn't get taxed even when you withdraw money from your account in retirement. Dan notes that the trade-off is that you don't get an upfront tax deduction for your contribution, which makes many investors avoid the Roth. But for those in low tax brackets, a Roth is an especially good way to lock in tax benefits that will last a lifetime.
Don't forget about your other retirement resources
Having a Roth IRA can make a huge difference in your financial security. But you should also consider the impact that Social Security has on your retirement finances. In our brand-new free report, "Make Social Security Work Harder for You," our retirement experts give their insight on making the key decisions that will help ensure a more comfortable retirement for you and your family. Click here to get your copy today.
Dan Caplinger and Dayana Yochim have no position in any stocks mentioned. Nor does The Motley Fool. Try any of our Foolish newsletter services free for 30 days. We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.