Roth IRAs

[bull]

I've heard a lot of good about this kind of retirement account. Anyone have one and/or used one? What do you think of it? Any downside?

[Rocky]

Do you plan on retiring in the next 20 years?  If not, then go with a Roth.  That is the really simple version.  Just do a google search, and there is plenty of information out there.  There are even calculators that let you know if you should switch.

[nh_mopar_fan]

There are great pages out there to compar ethe differences between the two. The major difference is that a Roth is funded with post-tax money. You do not get a tax break now unlike a 401k which takes the money out prior to taxes and reduces your current
tax bill.

At retirement, Roth withdrawals are tax free. 401K withdrawals are not tax free at withdrawal. Your withdrawals are taxed at whatever your tax rate is at the time of your retirement. Usually, that is a lower taxe rate than when you were working and making contributions so there is an added benefit. In essence, you are delaying paying taxes on this money you are putting into a 401K.

If your company offers a 401K plan and matches anything contributions, you MUST contribute at least as much as they match. Otherwise, you're thrwoing away free money.