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.
