If you have a low-interest, taxable CD, our agency has access to a CD Alternative which offers a higher interest rate which is also tax deferred.
The main difference between a Roth IRA and a Traditional IRA explained
A Traditional IRA is mainly an individual savings plan. Contributions are made up to a specified limit with the contribution tax deductible. Money invested and earned are subject to income taxes at time of withdrawal. Withdrawals can be made without penalty once you reach the age of 59 1/2 years of age and you must begin withdrawing from your account when you reach the age of 70 1/2.
A Roth IRA is also primarily an individual savings plan, however contributions are not tax deductible Withdrawals are tax free within certain limitations. Withdrawals can be made without penalty once your reach the age of 59 1/2 provided the funds have been in the account for 5 years. Unlike a traditional IRA, you can continue contributing to a Roth IRA even if you have reached the age of 70 1/2.