Why this is the best retirement account

April 27, 2021

With so many choices for tax-advantaged retirement accounts, identifying the cream of the crop can be even more challenging than choosing the best picture at the Oscars from an array of awe-inspiring movies. 

But when considering all the advantages each account can provide to retirees, there's one clear winner that stands out from the crowd and definitely deserves your investment dollars. 

Drumroll please, that account is... 

The Roth IRA

Before I explain why the Roth IRA takes the coveted title of best beginner retirement account, let's set the stage with a little background. 

The Roth IRA is a retirement savings account you invest in with after tax dollars. Your tax savings comes later, when you're allowed to make tax-free withdrawals as a retiree. This sets it apart from competitor accounts such as the 401(k) and traditional IRA, both of which you contribute to with pre-tax funds but which come with taxable withdrawals.