A Roth IRA savings plan offers many advantages over regular taxable saving. You save after-tax dollars, but your principal is not taxed at retirement. If you expect the tax rate when you retire to be higher than today’s levels this type of retirement savings plan might be interesting. (If you think tax rates will be lower when you retire than today, research Traditional IRAs here.)
This Roth IRA Calculator will show you how much more your investment can return in a Roth IRA account compared with a taxable savings account.