For many years the only way to save for retirement within a 401(k) plan was by contributing pre-tax dollars. Depending on your contribution rate, every pay period your employer deducts a predetermined amount from your paycheck and transfers it directly to your 401(k) account. Since all contributions are made with before-tax dollars, you don’t have to pay any taxes on the contributions and basically, minimize your taxable income.
A Roth IRA account is an account that provides not only tax-free growth of your hard-earned savings, but allows for anytime tax- and penalty-free distributions as well (only for contributions.) In addition, a Roth IRA gives you a much more flexibility over your funds and investment options, which can improve your overall performance and speed-up the accumulation process. For instance, you can construct your portfolio the way you want, not the way your 401k plan management company wants [Read more…] about Best Roth IRA Brokers