If you're 50+, Roth IRAs can be a retirement savings plan with very good benefits. ? Stephen Swintek/Getty Images
Both Roths and traditional IRAs are basically savings accounts with good tax breaks, which makes them an excellent place to stash cash for your retirement. You can sock away up to $5,500 in an IRA this year ? $6,500 if you're 50 or older.
You can make the full annual contribution up to a certain income level. For traditional IRAs, that's currently $59,000 for singles and $95,000 for marrieds. For Roths, it's better ? $112,000 for singles and $178,000 for marrieds. After that, the allowed contributions gradually decrease to zero.
Here's what Roths offer compared with traditional IRAs:
1. Easy access to your money, at any age.
You're allowed to withdraw your personal contributions whenever you want, without paying taxes or penalties. If you put $1,000 into a Roth on Monday and suddenly need some cash on Tuesday, you can take that $1,000 right out again. So your Roth can be both a retirement account and a ready savings account. Traditional IRAs don't allow free withdrawals.
Source: http://www.aarp.org/money/investing/info-04-2013/financially-speaking-roth-ira.html
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