Whether you are looking to maximize your retirement savings potential, or you need a primary retirement account because your employer does not offer a 401K retirement option, you may be feeling a bit overwhelmed when it comes to choosing the right retirement plan for your needs. Two of the most common types of retirement investment accounts available on the market today are the Traditional IRA and the Roth IRA, but unless you have found the time to research each of these options in detail, you may be unsure as to what makes one better than the other. Here are a few of the most popular advantages to why you should choose a Roth IRA over the Traditional IRA retirement investment option.

One of the main differences between a Roth IRA and a Traditional IRA is that the Roth does not require you to start taking distributions once you hit a certain age in order to avoid penalties. With a Traditional IRA, investors must start taking withdrawals from their account on April 1<sup>st</sup> of the year that follows the one in which they turned 70 and a half years old. This means that the investor must decrease the balance of the funds in their account and add the amount distributed to their income whether they need the funds or not. A Roth IRA exempts you from that requirement, and allows you to keep the funds in the account as long as you want to, allowing them to continue to grow until you finally reach a point where you need the funds for income.

Another surprising advantage to a Roth IRA is that it does not impose an age cutoff of when you are expected to stop contributing to the plan. With a Traditional IRA, investors are no longer able to contribute to their plan once they turn 70 and a half, which coincidentally is the age at which the investor is required to start taking distributions. With a Roth IRA you can continue to contribute funds for as long as you would like, until you reach a time when you need to start withdrawing the funds to supplement your income. You may also want to try the gold investment.

Lastly, and most beneficially is that the funds in a Roth IRA grow tax free. A Traditional IRA works a lot like a 401K retirement plan. Both utilize before tax funds for contributions, and then require the investor to have to pay income taxes on the funds they withdraw from the plan. The earnings in a Roth IRA are not subject to any form of income tax just as long as the account has been in place for a minimum of five years, and you wait to start taking distributions until you have reached the age of 59 and a half. This is a great option, especially if you do not expect your income tax rate to change once you hit retirement.

These are just a few of the main advantages to choosing a Roth IRA over a Traditional IRA investment option. With no age limit for contributions and no requirement for when you need to start taking distributions, the Roth IRA may just be the best possible investment option to help you save the amount of money you will need in order to enjoy your retirement years.