No matter your age or your income, financial experts there's a place in your investment planning for the retirement savings tool known as the Roth IRA. And right now is the ideal time to contribute to one.
If you're unfamiliar, it's important to note the differences between a traditional IRA and a Roth IRA. The biggest one comes down to when the investor pays taxes: With a traditional IRA, you can get a deduction when you contribute, and pay taxes when you withdraw funds in retirement, similar to a 401(k). With a Roth, it's the inverse. You pay taxes upfront, and then contributions grow tax-free forever, assuming you meet a few requirements like withdrawing the funds after age 59 and a half.
