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Why Roth IRAs Are Such a Great Deal

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.

Read/Post Comments (2) | Recommend This Article (20)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

  • Report this Comment On April 06, 2014, at 12:27 AM, herky46q wrote:

    Saving with the Roth means you have to delay not only the use of that money for a future date but also the tax advantage. That is leaving too much for the future. The tax advantage now also means I have more to invest and grow.

  • Report this Comment On April 13, 2014, at 8:07 AM, rrz174 wrote:


    they say just that in the video if you watched. San stated that if you are in a high tax bracket right now, it (Roth) is not as compelling

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Dan Caplinger

Dan Caplinger has been a contract writer for the Motley Fool since 2006. As the Fool's Director of Investment Planning, Dan oversees much of the personal-finance and investment-planning content published daily on With a background as an estate-planning attorney and independent financial consultant, Dan's articles are based on more than 20 years of experience from all angles of the financial world.

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