5 Steps to Open a Roth IRA [Video]

Roth IRAs are one of the best ways to save for retirement. Though there’s no upfront tax benefit, you get tax-free income in retirement—even on the earnings that have accumulated over the years. There are also no required minimum distributions (RMDs) for Roth IRAs during your lifetime. That means you can let the money keep growing until you need it, or even leave tax-free income to your beneficiaries.

The Roth is especially beneficial for younger people who typically have lower income tax rates than they are likely to have when they withdraw Roth IRA funds. They also have decades for their money to compound before retirement, allowing them to take greater advantage of compound interest. There are no age limits for creating a Roth IRA, so you can open an account for a child of any age. In fact, it’s really easy for anyone to open a Roth account online or in person with …