No matter what your retirement situation is, a Roth IRA can improve your portfolio. There are many factors that lend to the importance of a Roth that will effect you now and later. Look at a Roth IRA as a gift from Uncle Sam to you (possibly one of the only gifts). This government gift allows your retirement savings to accumulate absolutely TAX-FREE and is one of the most flexible accounts because you can add to it whenever you want.
If you are 50 and under, a single person can contribute $5,500 and married couples can add $6,500 each every year. If you are older than 50 you can contribute $6,500 regardless of your marital status. If you have yet to start a Roth, you have until April 15, 2016 to contribute for a 2015 contribution.
Noted that this account is great for all ages, we should review the power of the Roth in retirement. Roth’s do not have a minimum required distribution. As you inch closer to retirement and realize you do not need the money you can let it accumulate and leave tax-free money to your heirs. Another positive: a Roth can reduce or even avoid the Medicare surtax on your premiums since withdrawals do not count towards your adjusted gross income.
If the savings power, flexibility, and tax-free status aren’t enough to persuade you of the Roth’s importance, you can also take out money in a pinch. You can withdraw a portion of your contributions at any time, tax-free, and without penalty.