There are some good reasons to consider a Roth IRA: Assuming you’re eligible to contribute, earnings in a Roth IRA grow tax free and are also tax free when you make qualified withdrawals. Roth IRAs also have more flexible withdrawal rules than traditional IRAs.
Contribute up to $5,000 to a Roth IRA for the 2009 tax year anytime between January 1, 2009 and April 15, 2010. And if you’re age 50 or older in each tax year, you can make an extra $1,000 catch-up contribution.
Contributions for the 2008 tax year ended on April 15, 2009.
Roth IRAs are increasingly becoming the more attractive IRA option -- Why? Because Roth IRAs offer tax-free growth and more flexible withdrawal rules.
Assuming you meet the Modified Adjusted Gross Income (MAGI) limits, as long as you're still working and have earned income, you can make contributions to a Roth IRA, even after turning age 70½. And Roth IRAs don't require you to take required minimum distributions when you turn age 70½. In addition, your participation in an employer-sponsored retirement plan does not affect your Roth IRA eligibility.
To learn more about Roth IRAs, review the following articles: