New IRS rules for inherited IRAs became effective last year. Pay attention to avoid a 25% penalty and a "tax bomb".

Unlike traditional IRAs, Roth IRA withdrawals are tax-free and don't count in the 'combined income' formula, protecting your Social Security from taxes.

Legacy planning also shifts the calculus. Roth IRAs don't have Required Minimum Distributions during your lifetime, and heirs generally receive distributions free of income tax, though they must empty ...

Jane's Traditional and Roth IRAs prioritize stable income generation over capital appreciation, yielding 4.07% on $822,159.08 in 2026 estimates. Portfolios underperform major equity indexes in total ...

401(k) and Roth 401(k) plans are two ways to save for retirement. In a traditional 401(k), your contributions are tax deferred, and taxes apply only when you begin making withdrawals in retirement. In ...

Both accounts offer similar tax advantages, but there are key differences, especially when it comes to withdrawals before retirement. Many, or all, of the products featured on this page are from our ...

Trina Paul is a Breaking News and Personal Finance Writer at Investopedia, covering topics like retirement, consumer debt, and retail investing. She focuses on making complex financial topics ...

Even if you have already chosen an account for retirement savings, that doesn’t necessarily mean you can’t change your mind about it later. In fact, this is not at all uncommon — and many people see ...

Many investors within five years or so of retirement have the bulk of their savings in traditional tax-deferred 401(k)s and individual retirement accounts, instead of the after-tax Roth versions of ...

The IRS announced Roth individual retirement account contribution and income limits for 2026. For 2026, investors can save a maximum of $7,500 in Roth IRAs, up from $7,000 in 2025. The IRS also ...

Traditional 401(k)s give you a tax break today, but require you to pay taxes on your withdrawals later. Roth 401(k)s don't have an upfront tax break, but allow for tax-free withdrawals in retirement.